News
Bandai Profits Slightly Down

posted on 2003-11-09 23:00 EST
Bandai Co., Ltd. of Japan last Wednesday reported a five percent drop in its first half net profit. Bandai is projecting a record profit for the full year on solid sales of its character toys at home and abroad.

Consolidated net profit for the past six months through September 30 fell to 6.7 billion yen ($61.09 million) from 7.1 billion yen a year earlier. It was reported that profit was dragged down by soft demand for video games and losses at its subsidiaries.

But Bandai's sales and operating profit both grew five percent on the back of robust demand for its character products in Japan, figures and girls toys in Europe.

"Profit at our video game operations declined in the first half from a year earlier when we had superior performance. But we plan to launch many attractive new titles in the second half," Takeo Takasu, the President and COO of Bandai told a news conference.

"Our interim results were healthy as strong toy revenues and group-wide synergy effects mostly offset the profit decline in video games," he said.

Takasu said Bandai is on track to achieve its full-year target of a record 14.2 billion yen in net profit, on sales of 255 billion yen. It had 12.7 billion yen in net profit on revenues of 244.9 billion yen in the last year ended in March.

"Our franchise toys such as Gundam in Japan and girls toys in the Strawberry Shortcake and Bratz series overseas will continue to sell well in the second half," Takasu said.

Overseas revenues are expected to reach 52 billion yen, which would represent 20 percent of total sales. This would include Bandai's USA subsidiaries such as Bandai America, Bandai Entertainment, & Bandai Games.

Takasu has said that the maker hoped to see its overseas sales contribute to nearly half of total revenue within three to four years. Takasu also stated that Bandai would accelerate its overseas expansion next business year by doubling the number of character toy lines.

"We are also willing to make any mergers or acquisitions overseas to strengthen our global operations," Takasu said.

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