Quarterly results are out in Japan. Some notes ...
Bandai
Profits are generally up this quarter, and Bandai stock is paying dividends. Success this quarter is attributed to many factors including Gundam sales and the successful IPO of subsidiary Bandai Net.
The Toy/Hobby division's sales are up 10.5% and profits are up 25%. Success is attributed to Abaranger, Kamen Rider Faiz, Gundam, card games, gashapon, and candy toys. Overseas, Power Rangers, Strawberry Shortcake, and Bratz contribute to the bottom line.
The Lifestyle division find sales slightly up but profits slightly down with character clothing doing well. Amusement division profits are down.
Game division profits are down, although Gundam individually was quite successful. The worldwide launch of DBZ and .Hack products was successful. The Visual division's profits were up, with strong DVD sales for Gundam, Saint Seiya, and Super Sentai titles.
By region, Japanese profit was up 5.2%, North American profit was down 57%, European profit was up 61.5%, and Asia saw a remarkable 253% profit jump.
Announcements for future strategy include a focus on schoolkids, implying an over-concentration on adult oriented products. Televised properties will focus on Ultraman and Legendz rather than Gundam. Toy products will focus on Dekaranger and Kamen Rider Blade. Heavy concentration to be placed on Tamagotchi and card game properties. Steam Boy to be fully developed.
Overseas, high focus will be placed on Pokemon, the Thunderbirds movie, Strawberry Shortcake, and Teen Titans.
Takara
Takara's quarter saw profits down 30%, and less than anticipated. Overseas, costs rose with sales, nullifying profits. The financial condition was blamed on Beyblade's dwindling domestic sales, and generally unprofitable overseas sales (1/2 the GM of domestic sales). The overseas licensing costs of Duel Masters was also cited.
Despite this, overseas sales of Beyblade and Transformers were generally up. Domestic girls' products are found to lack market penetration. Lifestyle products such as e-Kara and BowLingual failed to meet targets domestically (BowLingual failed to meet US targets as well).
Takara's Amusement division saw a whopping 250% increase in profits, but Takara warns this is a short-term spike related to new product launches.
By region, Japanese sales were down, but profitable. North American sales were at a loss. South East Asian profits were up.
Takara leadership vows to control costs, and focus resources on Duel Masters and Battle B-Daman product.