Bandai Namco Holdings reported operating profit rose 17.9% to ¥51.9 billion ($355 million) in the first quarter, though the entertainment giant’s cautious full-year guidance suggests the momentum from last year’s record-breaking performance may be cooling.
Net sales increased 7.1% to ¥300.4 billion ($2.1 billion) for the three months ended June, driven primarily by domestic strength that masked concerning regional trends. Sales in the Americas plunged 24.5% while European revenue fell 15.2%, highlighting the company’s heavy dependence on its home market.
The Toys and Hobby division remained the standout performer with sales climbing 10.6% to ¥146.9 billion ($1 billion), benefiting from popular franchises including Dragon Ball and Gundam. Digital entertainment, however, managed only modest 1.4% growth to ¥107.8 billion ($738 million), a sharp contrast to the explosive gains seen during the Elden Ring expansion period.
Despite the solid quarterly showing, management raised only its half-year forecasts while keeping full-year projections unchanged at ¥1.2 trillion ($8.2 billion) in sales and ¥145 billion ($993 million) in operating profit. The measured approach reflects uncertainty about sustaining growth without another blockbuster gaming hit comparable to last year’s Shadow of the Erdtree expansion.
The regional performance disparity raises questions about Bandai Namco’s international expansion strategy, particularly as domestic toy sales increasingly drive overall results.
