Bandai Namco Financial Report: Q1 FY25 Highlights
Highlights
- Bandai Namco saw a remarkable 56% growth in profit during Q1, with digital sales soaring to $725 million.
- The Elden Ring expansion, “Shadow of the Erdtree,” sold a whopping 5 million units within 3 days post-launch.
- Despite mixed reviews, “Shadow of the Erdtree” has proven to be a major commercial success globally.
Bandai Namco Entertainment recently released their Q1 FY25 financial results, unveiling a remarkable 56% surge in profits and substantial growth in net sales and profits over the first quarter.
The company’s initial forecast for FY25 projected net sales of $6.9 billion (¥1.08 trillion) and net profits of $520.3 million (¥81 billion). While these projections remain unchanged, there have been revisions for the six months ending September 30th.
For the period up to September 30th, the company announced an upward revision in net sales from $3.5 billion (¥515 billion) to $3.7 billion (¥555 billion) and adjusted profits from $273 million (¥40 billion) to $410 million (¥60 billion).
Elden Ring: Shadow of the Erdtree – A Revenue Catalyst
Bandai Namco witnessed significant digital entertainment sales growth, reaching $725 million (¥106 billion), with a substantial boost attributed to the launch of FromSoftware’s “Elden Ring: Shadow of the Erdtree.”
The expansion to the original “Elden Ring” game was marketed on a scale comparable to a full game, setting new benchmarks for FromSoftware. The expansion’s massive scope, exceeding traditional downloadable content, marked a significant milestone.
Upon its release, “Shadow of the Erdtree” achieved a global milestone by selling 5 million units within three days, positioning it as a frontrunner for 2024’s most successful games, despite some initial performance concerns from fans.
In addition to FromSoftware’s success, Bandai Namco experienced sturdy growth in their amusement segment, showcasing a 17% increase in sales to $25,760 (¥33 million).
Looking back at FY24, Bandai Namco faced a two-year sales downturn, particularly in digital entertainment. Key titles like “Armored Core 6” and “Tekken 8” along with mobile app contributions drove sales, but digital sales fell below expectations.
As the fervor around “Shadow of the Erdtree” settles post-launch, Bandai Namco’s future success hinges on delivering another blockbuster title to replicate the expansion’s commercial triumph. If not, the company can depend on its strong Toys and Hobby segments to maintain stability.