Bandai Namco Posts Record Q1 Sales Despite Digital Segment Decline

Bandai Namco has announced its first-quarter financial results, revealing a record overall performance. However, the Digital segment, which encompasses the company's gaming operations, experienced a notable decline due to a decrease in new title releases compared to the same period last year. For the first quarter of the fiscal year ending March 31, 2026, the company reported: net sales of ¥328.4 billion ($2 billion), representing a 9.3% increase; operating profit of ¥69.2 billion ($436.7 million), up 33.3%; and ordinary profit of ¥74.4 billion ($469.5 million), up 36.3%. The strong performance of the Toys and Hobby segment was a key driver of the company's overall sales growth, with sales and profit increasing by 45.9% and 25.4%, respectively. Additionally, the company received a refund related to US tariffs, and its amusement facilities saw a 7.6% year-on-year increase in net sales for existing locations in Japan. In contrast, the Digital segment saw a 15.6% decline in sales to ¥90.9 billion ($573 million) and a 30.9% drop in profit to ¥15 billion ($94.5 million). The Home Console Game segment sold 6.9 million units during the quarter, with two new titles released, compared to 10.8 million units and 15 new titles in the previous quarter. The company's core game app titles maintained their popularity during the first quarter, and Bandai Namco is focused on strengthening its development capabilities to build a optimized title portfolio and reinforce its network content earnings base. The company has a number of new titles scheduled for release, including Ace Combat 8: Wings of Theve on October 2, 2026, Dragon Ball Xenoverse 3 in 2027, and Gundam Rogue Orbit in 2027. Bandai Namco has revised its half-year forecast for the Digital Contents segment, with sales now expected to increase by 10% from the previous forecast to ¥200 billion ($1.2 billion), representing a 31.5% decrease year-on-year. Operating profit is projected at ¥26.5 billion ($167 million), up 11.5% from the previous forecast but down 10.8% compared to last year. The company has not revised its full-year results but plans to reassess based on changes in the market environment and fan needs, as well as trends in major home console titles and key selling seasons.