Bandai Namco Holdings announced its Q3 FY2023 results, revealing its best-ever performance for the quarter to date, surpassing even its previous record from FY2002. The group reported sales of 743,187 million yen (≈5.63 million USD), up 18.28% compared to the same quarter in FY2022, and a year-over-year increase in profit of 36.86% to 84,444 million yen (≈639.26 million USD). The weak yen contributed to higher exchange gains, particularly from transactions in foreign currencies. The group’s various initiatives to foster connections with fans also helped drive strong sales in its Digital Business segment, particularly from existing titles like ELDEN RING, and in its Network Content Business segment, particularly from key titles like Dragon Ball and One Piece.
Dragon Ball Remains the Number 1 Most Profitable IP
Dragon Ball takes the top spot in terms of intellectual property (IP) sales, with an impressive 102.2 billion yen (≈773.68 million USD) in revenue as of the end of Q3. This represents a significant increase of 36.5 billion yen (≈276.31 million USD) compared to the end of Q2. Mobile Suit Gundam comes in second, with 99.1 billion yen (≈750.21 million USD) in sales for Q3, a 36.7 billion yen (≈277.83 million USD) increase compared to the previous quarter. One Piece and Kamen Rider follow in third and fourth place respectively, with 59.8 billion yen (≈452.70 million USD) and 23.6 billion yen (≈178.66 million USD) in sales.
All four of these titles have achieved their highest recorded sales since the announcement of results. Dragon Ball, in particular, has seen a significant increase in sales, with 102.2 billion yen (≈773.68 million USD) in revenue as of Q3, compared to just 12.8 billion yen (≈96.90 million USD) in Q3 of FY2008. Kamen Rider‘s performance in Q3 of FY2023 is not as strong as it was in Q3 of FY2013 when it generated 25.8 billion yen (≈195.31 million USD) in sales.
Mobile Suit Gundam Continues to Dominate the Toys and Hobby Business Segment
In the Toys and Hobby Business segment, Mobile Suit Gundam is the top-performing IP, with 47.6 billion yen (≈360.33 million USD) in sales, representing 48.03% of the total IP sales for the quarter. One Piece had slightly better performance than Dragon Ball in this segment, with 24.1 billion yen (≈182.44 million USD) in sales, compared to Dragon Ball‘s 17.9 billion yen (≈135.50 million USD). Both titles saw a revenue increase of 11.8 billion yen (≈89.33 million USD) and 5.9 billion yen (≈44.66 million USD) respectively in the latest quarter.
Mobile Suit Gundam, Dragon Ball, and One Piece have all seen their best performances in the Toys and Hobby Business since Q3 of FY2006, with One Piece achieving its first breach into the 20 billion yen (≈151.40 million USD) club in its history. In Q3 of FY2006, One Piece‘s Toys and Hobby division only sold 1.4 billion yen (≈10.60 million USD) worth of products, making its latest performance 17 times higher. Much of this success can be attributed to the release of the latest One Piece movie, “One Piece Film: Red,” which has had a positive impact on the sales of other segments in the series.
Percentage of Toys and Hobbies from Total Series Sales
| Titles | Total Series Sales (Billion Yen) | Total Toys and Hobby Sales (Billion Yen) | Δ% |
|---|---|---|---|
| Mobile Suit Gundam | 99.1 | 47.6 | 48.03% |
| ONE PIECE | 59.8 | 24.1 | 40.30% |
| DRAGON BALL | 102.2 | 17.9 | 17.51% |
| KAMEN RIDER | 23.6 | 16.4 | 69.49% |
| Anpanman | 7.8 | 7.2 | 92.31% |
| Ultraman | 15.3 | 6.9 | 45.10% |
| Super Sentai | 4.9 | 4.1 | 83.67% |
| Pretty Cure | 3.5 | 3.5 | 100.00% |
| Aikatsu! | 0.5 | 0.4 | 80.00% |
Bandai Namco Holdings’ strong performance is due to several factors, including the relaxation of COVID-19 restrictions in Japan, which has resulted in stronger sales for its live events business and GUNDAM FACTORY YOKOHAMA, exceeding the previous fiscal year’s sales. The group has also seen strong growth in video streaming and IP production overseas. While the Toys and Hobby Business segment faced challenges throughout the fiscal year, collectible figures and character lotteries performed well for the Mobile Suit Gundam series, and there was strong demand for trading card games for One Piece and digital cards for the Mobile Suit Gundam series. The group also noted positive demand for confectionery products such as Charapaki and capsule toys.
Mobile Suit Gundam model kits (left) and One Piece trading card game (right) are as popular as ever
Sales of Packages Continues to Underperform
Sales of packages have experienced a decline, with a 5.43% decrease to 8.7 billion yen (≈65.87 million USD) as of Q3 FY2023, marking its second-worst performance since FY2005. Meanwhile, sales from production, licensing, distribution, events, and other areas have remained robust at 46.3 billion yen (≈350.55 million USD), a drop of 8.32% but still the second-best performance since FY2005.
Future Plans
Looking to close the fiscal year, the group plans to focus on strengthening its marketing efforts and testing Gundam plastic model colonies within the metaverse. Additionally, they seek to expand their established IP and increase their global presence through expanding in-house e-commerce, online collaboration, and implementing IP merchandising for overseas markets. The group aims to continue rolling out IP products with diversified individuality, including titles such as Kidou Senshi Gundam: Suisei no Majo (Mobile Suit Gundam: The Witch from Mercury), Blue Lock, and Tensei shitara Slime Datta Ken Movie: Guren no Kizuna-hen (That Time I Got Reincarnated as a Slime: The Movie – Scarlet Bond).
Bandai Namco’s Targeted IP for the remaining Q4 from left: Kidou Senshi Gundam: Suisei no Majo, Blue Lock, Tensei shitara Slime Datta Ken Movie: Guren no Kizuna-hen, Sand Land and Synduality: Noir
Bandai Namco Holdings’ stock price was affected by the company’s Q3 FY2023 financial report. On the day the report was released, the stock closed at 8,621 yen (≈65.26 USD), a 1.25% decrease from the day before. The next day, the stock price opened with a 3.03% drop but ultimately closed 2.98% higher at 8,609 yen (≈65.17 USD). Despite the initial drop, the market seemed to have responded positively to the company’s plans for the future.
BANDAI NAMCO Holdings is incorporated in Japan with its head office in Minato-ku. It is listed on the Tokyo Stock Exchange under ticket symbol: 7832
Note:
All currency conversion was done at the time of writing.
Featured Image:
From Kidou Senshi Gundam: Suisei no Majo (or Mobile Suit Gundam: The Witch from Mercury) official web page here. Illustration from Lin Junbun.
Previous Quarter:
Half-year Results
Google Chart(s):
Sales and Profit (Groupwide)
Q2 vs Q3 IP Sales
IP Sales (Horizontal)
Q2 vs Q3 Toys and Hobby
Toys and Hobby (Horizontal)
Top 5 IP (Time Series)
Package Sales (Time Series)
Additional Charts:
Package vs Production, License etc. (Total)
Sources:
Securities Report (Q3 FY2023)
Presentation Material (Q3 FY2023)
Financial Highlights (Q3 FY2023)
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