Bandai Namco has released its financial results for the second quarter of the fiscal year ending September 30, 2025, revealing modest revenue growth offset by a decline in profitability. While the company recorded an increase in overall sales, rising costs and weaker margins have led to a downward revision of its full-year forecast.
According to the report, net sales rose 5.3 percent year-over-year to ¥643.8 billion, reflecting steady consumer demand across its entertainment portfolio. However, operating profit dropped 7.2 percent to ¥105.5 billion, while net profit slipped 2.3 percent to ¥78.9 billion. The company attributed this decline to rising expenses in development and marketing, along with pricing adjustments in its digital gaming division.
The Digital Business segment, which includes console and mobile titles, exhibited uneven performance. Revenue increased slightly to ¥231.5 billion, up 1.3 percent year-over-year, yet operating profit fell sharply by 16.4 percent to ¥37.4 billion. This trend highlights a significant contraction in margins as the company grapples with a shifting sales mix and higher production costs.
Home console game sales showed a notable regional disparity. In Japan, sales plunged 48 percent to 2.3 million units, while the Americas saw a 22 percent improvement with 7.3 million units sold. Europe emerged as the strongest market, climbing 72 percent to 13.4 million units. In total, Bandai Namco sold 22.9 million game units, representing a 26 percent increase from 18.2 million units a year earlier, supported by 37 new title releases. Despite this growth, profitability suffered due to lower pricing, aggressive discounting, and an increased focus on lower-margin titles.
Conversely, the company’s network content business—which encompasses mobile and online games—showed stronger momentum. First-half sales reached ¥117.2 billion, marking a 16 percent increase year-over-year, with full-year revenue expected to hit ¥218 billion. This segment continues to be a bright spot, offsetting the weaker results in console gaming.
Outside of digital entertainment, Bandai Namco’s toys and hobby division delivered the most robust performance. Sales in this segment rose 9.0 percent to ¥317.8 billion, with operating profit up 8.9 percent to ¥65.0 billion, achieving an impressive 18 percent profit margin. This steady growth underscores the enduring appeal of the company’s core franchises across merchandising and collectibles.
Among its key intellectual properties, Mobile Suit Gundam remained the top performer, generating ¥127.2 billion in sales during the first half. One Piece followed with ¥69.5 billion, while Dragon Ball contributed ¥13.4 billion. Geographically, Japan and Asia reported gains at 109.6 percent and 107.6 percent of the prior year, respectively, while the Americas and Europe underperformed, reaching only 83.6 percent and 96.4 percent of their previous levels.
Overall, Bandai Namco’s second-quarter performance reflects a company in transition—one achieving higher sales volumes but grappling with shrinking margins. The firm’s downward revision of its full-year guidance, now projecting a ¥165 billion operating profit (down 8.5 percent year-over-year), suggests management expects these pressures to persist. Going forward, Bandai Namco appears set to rely more heavily on its expanding mobile and hobby divisions to balance the challenges within its console gaming operations.
