Gundam Licensor Sotsu Reports Lower 2Q Income, Profits
posted on by Egan Loo
Sotsu, Namco Bandai Holdings' advertising agency which is heavily involved with anime projects, has announced on Monday the results for its second quarter, which ran from September 2008 to February 2009. Due to a decline in television programs and the marketplace for its job-placement business, it reported a sharp decline in income and profits compared to the same period last year. Income for the second quarter dropped 20.4% year-to-year to 6.977 billion yen (US$69.1 million). As a result, Sotsu's operating profit fell 24% to 991 million yen (US$9.8 million), and net profit fell 49.6% to 377 million yen (US$3.7 million).
During the quarter, Sotsu oversaw its main project, the Mobile Suit Gundam 00 Second Season television anime series, but it also contributed to Golgo 13, Shugo Chara!! Doki—, and Chibi Ani Gekijō. It also produced Soreike! Anpanman and Ko-sodate Paradise.
In particular, Sotsu's licensing business declined during the quarter. The Gundam robot anime franchise remained its mainstay, but it has few other hits. Higurashi no Naku Koro ni and Seto no Hanayome became hit franchises, but the other titles did not cover the agency's shortfall. Income from licensing rights for the quarter fell 20.8% year-to-year to 1.338 billion yen (US$13.3 million), and operating profits fell 10.2% to 755 million yen (US$7.48 million). A full 1.135 billion yen (US$11.2 million) of the quarterly income came from Gundam. However, quarterly income from Sotsu's other franchises dived from 400 million yen (US$3.9 million) to 202 million yen (US$2 million) year-to-year.
Image © Sotsu, Sunrise