Profits have dropped off slightly at Bandai Namco, despite an increase in video game sales.
According to the company's fiscal report for the nine months ended December 31, 2020, consolidated net sales rose by 2 percent year-on-year to 543.4 billion yen ($5.2 billion), while profits dipped by 4.3 percent to 50.6 billion yen ($483.8 million) over that same period.
It was a different story in the Network Entertainment segment, which houses Bandai's video game operations, with net sales increasing by 11.4 percent year-on-year to 258.4 billion yen ($2.4 billion) and operating profits rising by 30.9 percent to 47.7 billion yen ($456 million).
That upswing was partly driven by rising video game sales, which hit 32.3 million units over the past nine months, compared with 15.5 million units over the same period last year.
Based on its current performance, Bandai has upwardly revised its financial forecast and now expects to achieve net sales of 720 billion yen ($6.8 billion) and profits of 36 billion yen ($344.2 million) by the end of the fiscal year on March 31, 2021.
Bandai also outlined plans for a mid-term restructure that will see it reorganize its segment structure to "further strengthen its IP axis strategy in the global market."
Bandai explained it wants its businesses to "join together in a united effort to a greater degree than before," and has appointed two new directors -- Mitsuaki Taguchi and Masaru Kawaguchi -- to oversee the reshuffle.