In spite of a strong financial performance that saw profits and sales exceed its projections during the financial year leading to March 31st, 2019, Bandai Namco has projected a dip in sales and profits for the upcoming year.
In its report to investors (thanks, GI.biz), Bandai Namco reported that chiefly due to the success of its network entertainment business – in which sits Bandai’s gaming activities – net sales were up by 8 per cent year-on-year (YoY) at ¥732 billion ($6.7bn). While its gaming business itself saw its operating profit fall by 5 per cent to ¥48 million ($439K) across the year, it generated ¥341bn ($3.1bn) in net sales – up 4 per cent YoY.
While the company reported projected sales and operating profit would fall by 4 and 20 per cent respectively, in fact operating profit increased by 12 per cent to ¥84 billion ($770m). In the final quarter of the reporting period alone, Bandai Namco saw net sales of ¥204 billion ($1.9bn) and an operating profit of ¥14 billion ($128m).
Looking ahead, the Japanese company expects its gaming business to generate an operating profit of ¥36 million ($329K) and net sales of ¥320 billion ($2.9bn), whilst across the entire company, it expects a 1.7 per cent dip in net sales and a 16.7 per cent drop in operating profit. This more conservative projection comes in acknowledgement of a curtailed release schedule that will see 140 games released in FY20 instead of the 180 games/localisations released over the last financial year.
“As of April 2018, we have been promoting a new three-year Mid-term Plan under the Mid-term Vision of CHANGE for the NEXT — Empower, Gain Momentum, and Accelerate Evolution,” said Bandai Namco’s president and representative director, Mitsuaki Taguchi. “This vision incorporates the aim of achieving “CHANGE” to progress to the next stage by continuing to empower, gain momentum, and accelerate evolution without being bound by previous business models and established ideas.
“Significant changes are currently under way around the world, and in this setting Bandai Namco Group will strive to achieve change to progress to the next stage. In the future, we must create new entertainment that meets the expectations of fans by taking a positive approach to transcending previous ways of doing things and established ideas. If we do not change, we will not be able to survive in the next generation. With boundless curiosity about new things, the Group will work together to take on emerging challenges.”