Namco Bandai Targets Record Operating Profit on Games, Toys

Namco Bandai Holdings Inc. (7832), creator of “Tekken,” expects earnings to rise to a record next financial year on sales of toys and games including “Pac-Man.”

The company is targeting operating profit of more than 49 billion yen ($494 million) in the 12 months ending March 2015, President Shukuo Ishikawa said in an interview at the Tokyo Game Show yesterday, without providing detail. The company expects profit of 40 billion yen this financial year.

Namco, which produces video games and trading cards, is increasing the proportion of revenue from outside Japan to 30 percent from about 18 percent as it drives products under brands it owns and expands games for mobile devices. The Tokyo-based company is in talks to buy popular intellectual properties in Europe and the U.S., Ishikawa said, without identifying targets.

“Namco Bandai will be a strong presence in the mobile game field moving forward,” analysts at Goldman Sachs Group Inc. led by Masaru Sugiyama said in an Aug. 12 report. “Namco Bandai’s contents have tremendous popularity in Japanese TV, film, toy, and game genres and some, like Pac-Man, are popular overseas.”

New game consoles from Sony Corp. and Microsoft Corp. will be “positive” for software makers such as Namco, Ishikawa said.

Photographer: Kiyoshi Ota/Bloomberg

Shukuo Ishikawa, president and chief executive officer of Namco Bandai Holdings Inc.. Close

Shukuo Ishikawa, president and chief executive officer of Namco Bandai Holdings Inc..

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Photographer: Kiyoshi Ota/Bloomberg

Shukuo Ishikawa, president and chief executive officer of Namco Bandai Holdings Inc..

Shares of Namco rose 3.3 percent to 1,798 yen in Tokyo yesterday. The stock has surged 61 percent this year, compared with a 41 percent rise in the benchmark Topix index.

To contact the reporter on this story: Takashi Amano in Tokyo at tamano6@bloomberg.net

To contact the editor responsible for this story: Michael Tighe at mtighe4@bloomberg.net

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