Bandai Namco has released its financial results for the second quarter of fiscal year 2025, which ended on September 30, 2025. The company's revenue showed moderate growth, but profits declined due to increased expenses and weak margins, leading to a revision of the full-year forecast.
Net sales increased by 5.3% year-on-year to ¥643.8 billion ($4.45 billion), reflecting stable demand for the company's entire entertainment portfolio. Operating profit decreased by 7.2% to ¥105.5 billion ($730 million), and net profit fell by 2.3% to ¥78.9 billion ($545 million). The decline is attributed to increased development and marketing expenses, as well as price adjustments in the digital gaming segment.
The digital business segment, including console and mobile games, showed mixed results. Revenue increased by 1.3% to ¥231.5 billion ($1.6 billion), but operating profit fell by 16.4% to ¥37.4 billion ($260 million), indicating margin compression.
Sales of home console games differed by region: Japan saw a 48% decrease to 2.3 million units, America saw a 22% increase to 7.3 million, and Europe saw a 72% increase to 13.4 million. A total of 22.9 million games were sold (+26% year-on-year), supported by 37 new releases, but profits suffered due to low prices and aggressive discounts.
The network content segment developed the strongest: mobile and online games brought in ¥117.2 billion ($810 million, +16%), with a full-year forecast of ¥218 billion ($1.5 billion). Toys and hobbies showed a 9% increase to ¥317.8 billion ($2.2 billion) with an operating profit of ¥65.0 billion ($450 million, 18% margin).
The revenue leaders were Mobile Suit Gundam – ¥127.2 billion ($880 million), One Piece – ¥69.5 billion ($480 million), Dragon Ball – ¥13.4 billion ($93 million). Japan and Asia showed growth of 109.6% and 107.6%, respectively, while America and Europe showed 83.6% and 96.4%, respectively.
Overall, Bandai Namco is increasing sales volume but facing margin declines. The company has lowered its operating profit forecast by 8.5% to ¥165 billion ($1.14 billion), planning to rely on the mobile and hobby segments to compensate for weak console game results.
