Bandai Namco reports record sales for the first quarter; however, operating profit in the Digital segment declines by 30.9%
Bandai Namco has released its most successful first-quarter financial results to date.
Despite this achievement, the Digital segment saw a marked decrease, attributed to fewer game releases compared to the last year’s quarter.
The numbers
In the fiscal period ending March 31, 2026, for the initial three months:
- Net sales: ¥328.4 billion ($2 billion), an increase of 9.3%
- Operating profit: ¥69.2 billion ($436.7 million), a rise of 33.3%
- Ordinary profit: ¥74.4 billion ($469.5 million), growing by 36.3%
The highlights
The Toys and Hobby segment was a key driver of Bandai Namco's growth, with sales and profits escalating by 45.9% and 25.4%, respectively. A refund concerning US tariffs also boosted the company's performance.
Existing amusement facilities in Japan showed a 7.6% increase in net sales from the prior year.
Contrastingly, the Digital segment, responsible for game-related activities, saw declines in sales and profit. Sales fell 15.6% to ¥90.9 billion ($573 million), and profit dropped by 30.9% to ¥15 billion ($94.5 million).
The Home Console Game area reported 6.9 million units sold this quarter, with the launch of two new titles.
In contrast, the previous quarter saw the sale of 10.8 million units and the introduction of 15 new titles, including a prominent release. Platform and region-based versions are not included in these figures.
Core gaming apps continued their popularity throughout the quarter. The company announced that it is enhancing its development abilities to cultivate an optimally diversified portfolio and is reinforcing its network content revenue model.
Forthcoming releases for the year include Ace Combat 8: Wings of Theve on October 2, 2026, with Dragon Ball Xenoverse 3 and Gundam Rogue Orbit following in 2027.
Bandai Namco has updated its forecast for the Digital Contents segment mid-year, predicting a 10% rise from the earlier forecast to ¥200 billion ($1.2 billion), though still showing a 31.5% decrease year-on-year.
Operating profit in this segment is now expected to reach ¥26.5 billion ($167 million), marking an 11.5% increase from the last prediction but a 10.8% decline from the previous year.
Although the full-year forecast remains unchanged, the company intends to reevaluate it based on "market environment shifts, consumer preferences," and "trends of major forthcoming home console titles in the third quarter and beyond, alongside vital sales periods, among other factors."