Bandai Namco FY3/2024 Q2 Earnings Release. Operating Income: ¥37,490M (+0.74% YoY), Home video game software units: 10.373M units (-20.77% YoY).

[ggx2ac]

This is for the 2nd Quarter earnings release for the fiscal year ending March 2024.

Earnings Release:

https://www.bandainamco.co.jp/files/E_2024E5B9B43E69C88E69C9FE7ACAC2E59B9BE58D8AE69C9F.pdf

Financial Highlights:

https://www.bandainamco.co.jp/files/E_2023E5B9B4E5BAA62Q_E8A39CE8B6B3E8B387E69699(E88B.pdf

Presentation Slides (Japanese):

https://www.bandainamco.co.jp/files/ir/financialstatements/pdf/20231107_Presentation.pdf

Operating profit of the Entertainment (Digital) segment is down 65.2% YoY (cumulative). Slides mention Amortization costs for Armored Core VI.

The following tables come from my webpage: https://r134x7.github.io/nintendo-earnings-data-and-other-video-game-companies/#/bandai-namco

Consolidated Operating Results:

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| Bandai Namco Holdings Inc. | FY3/2024 |
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| Consolidated Operating Results        |
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+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of September 30th, 2023 |
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| Net Sales                  |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |    ¥224,812M |    +3.96% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |    ¥277,190M |    +6.05% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |    ¥502,002M |     +5.1% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|  ¥1,000,000M |
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###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Income           |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |     ¥27,989M |   -36.95% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |     ¥37,490M |    +0.74% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |     ¥65,479M |   -19.76% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|    ¥125,000M |
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###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Margin           |
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| 1st Quarter |       12.45% |
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| 2nd Quarter |       13.53% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |       13.04% |
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+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|        12.5% |
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###
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Income                 |      YoY% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |     ¥21,786M |   -41.15% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |     ¥30,381M |    +2.85% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |     ¥52,167M |   -21.62% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|     ¥91,000M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
###

Sales Per Software Unit:

+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Bandai Namco Holdings Inc. | FY3/2024 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Segment Information - Software Sales  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of September 30th, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Home video game                                  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|             |             |          | Sales Per |
|             |             | Software |  Software |
|             |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Quarter |    ¥22,500M |    7.78M |    ¥2,892 |
|        YoY% |     -44.44% |  -32.49% |    -17.7% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 2nd Quarter |    ¥43,000M |  10.373M |    ¥4,145 |
|        YoY% |      -3.59% |  -20.77% |   +21.66% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| 1st Half    |    ¥65,500M |  18.153M |    ¥3,608 |
|        YoY% |     -23.03% |  -26.26% |    +4.37% |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| *Sales might include: - Downloadable content     |
| purchases                                        |
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| Home video game Forecast                             |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|                 |             |          | Sales Per |
|                 |             | Software |  Software |
|                 |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|FY3/2024 Forecast|   ¥170,000M |      48M |    ¥3,542 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FCST Revision 1 |   ¥145,000M |    41.5M |    ¥3,494 |
+======================================================+
| *Sales might include: - Downloadable content         |
| purchases                                            |
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###

Special page data, consolidated operating results:

+−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Bandai Namco Holdings Inc. |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Consolidated Operating Results  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of September 30th, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Sales                          |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2006 2nd Quarter |   ¥218,873M |
| FY3/2007 2nd Quarter |   ¥107,517M |
| FY3/2008 2nd Quarter |   ¥117,422M |
| FY3/2009 2nd Quarter |   ¥100,816M |
| FY3/2010 2nd Quarter |    ¥97,004M |
| FY3/2011 2nd Quarter |    ¥91,683M |
| FY3/2012 2nd Quarter |   ¥106,000M |
| FY3/2013 2nd Quarter |   ¥113,915M |
| FY3/2014 2nd Quarter |   ¥122,661M |
| FY3/2015 2nd Quarter |   ¥136,829M |
| FY3/2016 2nd Quarter |   ¥135,404M |
| FY3/2017 2nd Quarter |   ¥149,777M |
| FY3/2018 2nd Quarter |   ¥164,762M |
| FY3/2019 2nd Quarter |   ¥183,766M |
| FY3/2020 2nd Quarter |   ¥190,076M |
| FY3/2021 2nd Quarter |   ¥192,087M |
| FY3/2022 2nd Quarter |   ¥215,597M |
| FY3/2023 2nd Quarter |   ¥261,379M |
| FY3/2024 2nd Quarter |   ¥277,190M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             19 |
| Sum               |    ¥2,982,758M |
| Average           |      ¥156,987M |
| Median            |      ¥136,829M |
| Minimum           |       ¥91,683M |
| Maximum           |      ¥277,190M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Operating Income                   |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2006 2nd Quarter |    ¥17,546M |
| FY3/2007 2nd Quarter |     ¥8,607M |
| FY3/2008 2nd Quarter |    ¥10,612M |
| FY3/2009 2nd Quarter |     ¥4,048M |
| FY3/2010 2nd Quarter |       ¥143M |
| FY3/2011 2nd Quarter |     ¥2,114M |
| FY3/2012 2nd Quarter |     ¥9,428M |
| FY3/2013 2nd Quarter |    ¥11,593M |
| FY3/2014 2nd Quarter |    ¥13,042M |
| FY3/2015 2nd Quarter |    ¥15,028M |
| FY3/2016 2nd Quarter |    ¥13,021M |
| FY3/2017 2nd Quarter |    ¥15,485M |
| FY3/2018 2nd Quarter |    ¥19,330M |
| FY3/2019 2nd Quarter |    ¥26,038M |
| FY3/2020 2nd Quarter |    ¥25,111M |
| FY3/2021 2nd Quarter |    ¥26,015M |
| FY3/2022 2nd Quarter |    ¥34,730M |
| FY3/2023 2nd Quarter |    ¥37,214M |
| FY3/2024 2nd Quarter |    ¥37,490M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             19 |
| Sum               |      ¥326,595M |
| Average           |       ¥17,189M |
| Median            |       ¥15,028M |
| Minimum           |          ¥143M |
| Maximum           |       ¥37,490M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Net Income                         |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2006 2nd Quarter |     ¥7,834M |
| FY3/2007 2nd Quarter |     ¥6,934M |
| FY3/2008 2nd Quarter |     ¥5,208M |
| FY3/2009 2nd Quarter |       ¥264M |
| FY3/2010 2nd Quarter |    ¥-3,192M |
| FY3/2011 2nd Quarter |     ¥3,574M |
| FY3/2012 2nd Quarter |     ¥4,778M |
| FY3/2013 2nd Quarter |     ¥7,095M |
| FY3/2014 2nd Quarter |    ¥10,099M |
| FY3/2015 2nd Quarter |     ¥9,640M |
| FY3/2016 2nd Quarter |     ¥8,813M |
| FY3/2017 2nd Quarter |    ¥11,668M |
| FY3/2018 2nd Quarter |    ¥14,698M |
| FY3/2019 2nd Quarter |    ¥19,551M |
| FY3/2020 2nd Quarter |    ¥17,683M |
| FY3/2021 2nd Quarter |    ¥18,534M |
| FY3/2022 2nd Quarter |    ¥18,610M |
| FY3/2023 2nd Quarter |    ¥29,538M |
| FY3/2024 2nd Quarter |    ¥30,381M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count             |             19 |
| Sum               |      ¥221,710M |
| Average           |       ¥11,669M |
| Median            |        ¥9,640M |
| Minimum           |       ¥-3,192M |
| Maximum           |       ¥30,381M |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+

Special page data, sales per software unit:

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| Bandai Namco Holdings Inc.            |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Segment Information - Software Sales  |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Data as of September 30th, 2023 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Home video game                                           |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
|                      |             |          | Sales Per |
|                      |             | Software |  Software |
|                      |       Sales |    Units |      Unit |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| FY3/2019 2nd Quarter |    ¥23,200M |   6.198M |    ¥3,743 |
| FY3/2020 2nd Quarter |    ¥22,800M |   5.839M |    ¥3,905 |
| FY3/2021 2nd Quarter |    ¥30,000M |   9.389M |    ¥3,195 |
| FY3/2022 2nd Quarter |    ¥29,500M |   9.534M |    ¥3,094 |
| FY3/2023 2nd Quarter |    ¥44,600M |  13.092M |    ¥3,407 |
| FY3/2024 2nd Quarter |    ¥43,000M |  10.373M |    ¥4,145 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| Count                |           6 |        6 |         6 |
| Sum                  |   ¥193,100M |   54.42M |   ¥21,489 |
| Average              |    ¥32,183M |    9.07M |    ¥3,582 |
| Median               |    ¥29,750M |    9.46M |    ¥3,575 |
| Minimum              |    ¥22,800M |   5.839M |    ¥3,094 |
| Maximum              |    ¥44,600M |  13.092M |    ¥4,145 |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+
| *Sales might include: - Downloadable content         |
| purchases                                            |
+−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−+

Bandai Namco has broken records for having the highest second quarter net sales, operating income and net income for a second quarter ever.

 

[Oregano]

Their presentation mentions Armored Core sold over 2.5m copies by the end of the quarter.

 

[Fularu]

The 20% decline in software sales is worrying. AC6 clearly failed to be an Elden Ring moment (even if the game gained new customers in the west and in Japan thanks to Steam) and constantly ignoring a 130 million userbase outside of some lipservice moments mat be a worrysome strategy if maintained

I guess the increased income and profit are due to other sectors, then making the software sales decline seem softer than it really is

 

[ItWasMeantToBe19]

The AC6 number is absurdly good, I'm shocked at how well it did and I would be very confused if anyone was disappointed.

 

[Oregano]

The 20% decline in software sales is worrying. AC6 clearly failed to be an Elden Ring moment (even if the game gained new customers in the west and in Japan thanks to Steam) and constantly ignoring a 130 million userbase outside of some lipservice moments mat be a worrysome strategy if maintained

I guess the increased income and profit are due to other sectors, then making the software sales decline seem softer than it really is

It's not at all realistic to ever think that could be the case. The only other Japanese games to have done comparable to Elden Ring are Monster Hunter World(actually slightly worse) and a handful of Nintendo games.

 

[Fularu]

It's not at all realistic to ever think that could be the case. The only other Japanese games to have done comparable to Elden Ring are Monster Hunter World(actually slightly worse) and a handful of Nintendo games.

Having an Elden Ring moment means branching into new markets. I wasn'T implying that AC6 was supposed to sell 20 million units but the case could be made that Bamco's expectations were certainly more in line with a DS level of sales than sub 3 millions in the first quarter. It lloks a tad bit disapointing after the DS 1 2 3, Sekiro, Elden Ring quintet