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Bandai Namco’s sales soar while profits plummet, as mobile hardly gets a mention

Record net sales were achieved in fiscal year 2024 but operating and recurring profits fell
Bandai Namco’s sales soar while profits plummet, as mobile hardly gets a mention
Date Type Companies Involved Key Datapoint
May 22, 2024 report Bandai Namco $6.7 billion net sales
  • Bandai Namco achieved record net sales in its 2024 fiscal year with $6.7 billion
  • Digital profits fell from ¥49.3 billion in the 2023 fiscal year to only $39.6 million in 2024

Bandai Namco achieved record net sales of ¥1.05 trillion ($6.7 billion) in its 2024 fiscal year, outperforming its forecast of ¥1 trillion ($6.4 billion) with yet another rise. ¥1.05 trillion ($6.7 billion) in net sales represents a 6% year-on-year increase over 2023’s ¥990 billion ($6.3 billion), which was already an 11.3% rise on the year prior.

This sales increase and record result has come despite a fall in digital sales from ¥385.6 billion ($2.5 billion) in the previous fiscal year to ¥372.6 billion ($2.4 billion) in 2024’s, with growth instead driven by Bandai Namco’s IP production, amusements, toys and hobby sales.

Apple Arcade exclusive Tamagotchi Adventure Kingdom released in this fiscal year, as did Takt Op Symphony to Western audiences, meanwhile reported Dragon Ball Z Dokkan Battle surged to the top of worldwide consumer spending this February; yet, not one of these titles received a direct mention in Bandai’s financial results, nor did any other mobile game…

Strengths and weaknesses

In its 2023 fiscal year, Bandai Namco recorded an 11.3% increase in net sales attributed mainly to mobile and PC rather than console. In 2024, the platform distribution of its sales is less clear. Dragon Ball as a series was highlighted as one of its successful "established IP products" though the mobile game Dragon Ball Z Dokkan Battle wasn’t named specifically, meanwhile One Piece was likely mentioned for its Netflix adaptation rather than the now-closed mobile game One Piece: Thousand Storm.

Bandai Namco did note that "major app titles contributed but PC online game fell short of target", though when digital sales on the whole fell in the fiscal year, this lack of mobile mentions beyond the fact the portable platform "contributed" to its results, certainly doesn’t indicate a year as strong as 2023’s.

And while total net sales reached a record high - thanks predominantly to toy and hobby sales - operating and recurring profits actually fell. Operating profit fell year-on-year from ¥116.4 billion ($744 million) to ¥90.6 billion ($579.1 million) and recurring profit fell from ¥128 billion ($818 million) to ¥104.1 billion ($665.4 million), though both came out stronger than was projected a year ago.

Digital profits in particular took a hit, down from ¥49.3 billion ($315.1 million) in the 2023 fiscal year to only ¥6.2 billion ($39.6 million) in 2024, though even this was higher than the ¥1 billion ($6.4 million) initially forecast. The decline was expected due to a "revamp" in the company’s games lineup.

"In the digital business, we recorded a valuation loss and a disposal loss due to a reevaluation of the title lineup," Bandai Namco reasoned. "We aim to increase sales and profit YoY. Our forecasts consider changes in market trends and fan preferences, sales of products and services in each business and marketing plans."

As for the 2025 fiscal year, another record-breaker is projected with ¥1.08 trillion ($6.9 billion) expected in net sales. Operating and recurring profits are expected to bounce back too.