Namco Bandai releases Q2 2010 financial report. How's the toy business?

We know them as Bandai, but they are part of a larger conglomerate called Namco Bandai Holdings inc. They've released theier Quarterly report for Q2 2010, and you can get some interesting perspective about Bandai and the toys you crave.

Interesting things:

1. Bandai's Toy and Hobby division generates the most revenue, followed by games and amusement.

Visiual and Music come in last, hence the announcement of a Group Restart Plan for those sections, with layoffs.

2. Japan is doing well, North America is not

From their release: "In the Toys and Hobby Business, long-established character toys such as the MASKED RIDER series, Samurai Sentai
Shinkenger and FRESH PRETTY CURE ! posted strong performances in Japan. Although the DATA CARDDASS MASKED RIDER BATTLE: GANBARIDE and card game Battle Spirits became popular, vending machine capsule products and other peripheral toy categories struggled amidst the stagnation of individual consumption. Overseas, despite the strong sales of BEN10 character toys, performance overall was weak, especially in the Americas where the market was particularly difficult. As a result, net sales in the Toys and Hobby Business were 66,700 million yen (year-on-year decrease of 8.9%), and operating income was 3,765 million yen (year-on-year decrease of 14.7%)."

So, basically JP toy sales are strong, but US sales are in the toilet.

3. The Americas

In talking about the Americas segment, the release said: "Americas In the Toys and Hobby Business, the BEN10 character toys performed solidly, but overall the business struggled in the midst of a difficult market environment. In the Game Contents Business, performance did not reach the level of the same period of the previous fiscal year not only because the game titles for this fiscal year are concentrated in the second half, but also due to the strong sales of localized game titles that occurred in the same period of the previous fiscal year. On the other hand, in the Visual and Music Content Business, profitability improved as a result of changes to the business model, while in the Amusement Facility Business, efforts continued to be on cutting costs by improving operational efficiency in the midst of a difficult market environment. As a result, net sales in Americas were 15,044 million yen (year-on-year decrease of 18.5%) and operating loss was 3,808 million yen (compared with an operating loss of 813 million yen in the same period of the previous fiscal year)."

Here's some perspective for you. Net sales in Japan for toy and hobby - 66,700 million yen. In the US? 15,044 million yen total.

4. Moving forward

The release says: "Specifically, for the Toys and Hobby Business, the Group’s attention in Japan will be to strengthening the development of long-established character series such as Mobile Suit Gundam, which is celebrating its 30th anniversary, MASKED RIDER W (Double) and Tamagotchi, both of which started airing on TV from this autumn. The Group will also strengthen the development of its long-established character series such as Samurai Sentai Shinkenger and FRESH PRETTY CURE ! Also
overseas, aiming for dynamic growth in the medium- to long-term, the Group will strengthen new categories of merchandise
such as girls’ toys and preschoolers’ toys."

Basically, less Power Rangers, more baby toys.

5. More hobby in North America?

In addition to the Q2 report, bandai also released the presentation at the meeting. Amongst their typical powerpoint slides, there are a few interesting images. One shows an interesting chart where in the past they have focused on boys action toys. It shows the future, focusing on Girls, games, preschool and HOBBY. Could that mean Gundam kits again? Who knows....

The whole report is an interesting read, and can be found here