Marvelous Cuts Financial Forecast due to Mobile Games, but Senran Kagura Is Still Doing Well

Marvelous Entertainment announced its quarterly financial results for the third quarter of the current fiscal year, related to the period between October 1 and December 31.

As you can see in the tables below, net sales were 7,709 million yen in the quarter (up from 6,869 million year-on-year), while operating profit was 847 million yen, down from 1,443 million last year.

The Consumer Business (console games and arcade) was 45% of the sales volume, followed by the Online Business (mobile apps), which represented 31.4% of sales.

Speaking of the nine months ended on December 31, Marvelous mentions that the smartphone market has become more competitive, with success focusing on a limited number of hit titles.

Speaking of the Japanese console market in general, both hardware and software performed well driven by the release of big games, while information on next-gen consoles has been drawing attention.

Under those circumstances, Marvelous, as an entertainment company based on a “multi-content and multiplatform” strategy, has strived to develop a wide variety of entertainment content for many devices in all business segments. With aggressive branding, and a global strategy of partnerships, they have worked to provided high-quality content and enhance services. 

That being said, sales for the nine months were 18,546 million yen (down 8.2% year-on-year), and operating income was 2,111 yen (down 49.9% year-on-year).

Speaking more of the mobile business, Shinobi Master Senran Kagura New Link which is in its third year of operation, performed well.

Other titles did not manage to meet expectations, and with the postponement to improve quality of two games that were supposed to come this fiscal year, led to lowering the full-fiscal year forecast for the whole company for both sales and operating profit by 7% and 39.5% respectively.

Sales fo the mobile business were 5,975 million yen in the first nine months of the fiscal year (down 13.5% year-on-year), while income was 120 million yen (down 86.3% year-on-year).

In the Consumer Business (consoles and arcade), Story of Seasons: Friends of Mineral Town enjoyed strong sales on Nintendo Switch, 

Net Sales were 8,714 million yen in the first three quarters of the fiscal year (up 10.1% year-on-year), while income was 1,936 yen (down 27% year-on-year).