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Bushiroad Faces Financial Struggles Amid Declining Mobile Game Revenue

The company's fiscal year forecast is revised downward, citing significant drops in sales and profits
Japan
b 7803.TSE Anime 20 Games 75 Entertainment 100
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Bushiroad, listed on the Tokyo Stock Exchange Growth Market since 2019, is experiencing financial difficulties in the fiscal year ending June 2024. The company’s third-quarter financial results, announced on May 14th, revealed a 6.5% decrease in sales to ¥32,858 million, with a drastic drop in profits. Operating income plummeted by 96.5% to ¥70 million, and ordinary income fell by 75.7% to ¥653 million, culminating in a net loss of ¥25 million for the period.

The company has adjusted its full-year earnings forecast downward, indicating a challenging outlook. Projected consolidated sales have been reduced from ¥51 billion to ¥45 billion, operating income from ¥2 billion to ¥700 million, ordinary income from ¥2.3 billion to ¥1.3 billion, and net income from ¥1,234 million to ¥600 million.

A primary factor for the downturn is the underperformance of its mobile games segment. Sales in the digital content unit, largely comprising mobile games, dropped by 28% year-on-year to ¥4.686 billion, resulting in a loss. The termination of several game services, including “Senki Zesshou Symphogear XD UNLIMITED” and “Love Live! School Idol Festival 2 MIRACLE LIVE!”, contributed to this decline.

Bushiroad is shifting focus to console games, launching new titles like “Macross -Shooting Insight-“. Despite initial development costs, the company expects a future reduction in deficits and improved performance from increased console game releases.

In its trading card game division, “Shadowverse EVOLVE” struggled, but “Weiss Schwarz” and “Cardfight!! Vanguard” showed strength. The new “Professional Baseball Card Game Dream Order,” released in April 2024, is anticipated to bolster future growth.

The live entertainment and sports units performed well, driven by “BanG Dream!” music events and New Japan Pro Wrestling’s “WRESTLE KINGDOM 18”. Future plans include improving operational efficiency by integrating Stardom as a subsidiary of New Japan Pro-Wrestling.

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