TOP INTERVIEW

The results for the first half of FY2026.3 have been announced.

In the six months of FY2026.3, net sales were ¥643.8 billion, operating profit was ¥105.4 billion, ordinary profit was ¥110.1 billion, and profit attributable to owners of parent was ¥78.9 billion. Net sales reached a record high, while operating profit fell slightly short of the level that it was during the same period of the previous fiscal year. However, due to the impact of our portfolio comprising diverse IPs and a broad range of business categories, the Group as a whole delivered solid results.
In terms of our businesses, the Toys and Hobby Business saw significant profit growth, and the Amusement Business achieved a stable performance. In the Digital Business and Visual and Music Business, although there were massively successful titles and releases, differences in the product mix compared to the first half of FY2025.3 impacted performance. Regarding IP rollouts, sales from the Gundam series soared across the Group, reaching ¥127.2 billion. This significant growth was driven by strong synergies between product and service rollouts and the buzz generated by the latest visual work Mobile Suit Gundam GQuuuuuuX, the GUNDAM NEXT FUTURE PAVILION at Expo 2025 Osaka, Kansai, Japan, and other initiatives. As a result, our first-half performance exceeded both our initial projections and the revised projections we announced on August 5, 2025.

You have made revisions to your full-year forecast for FY2026.3.

We revised the figures for our full-year forecast for FY2026.3, which we announced on May 8, 2025, taking into account not only our first-half performance but also current trends in the market and each business as well as marketing plans for products and services from the second half onward. Revising our initial forecasts of net sales of ¥1,200.0 billion and operating profit of ¥145.0 billion, our new forecasts call for net sales of ¥1,250.0 billion and operating profit of ¥165.0 billion.
In addition, we have set the interim dividend at ¥23 per share in accordance with our basic policy regarding shareholder returns. We also intend to reexamine our year-end dividend in consideration of various circumstances.

Could you comment on the trends for each business and business topics for the second half?
What is the situation in the Toys and Hobby Business?

The Toys and Hobby Business aims to maintain strong results in each category and achieve a record-high performance for the eighth consecutive year. In the second half, we expect the impact of the U.S. tariff policy on segment profit to be around ¥1.0 billion. Our current response to this tariff policy varies according to product characteristics and price ranges. For example, we may absorb the impact of increased tariffs internally, adjust our prices, or revise our product lineups. Over the medium to long term, we will consider further decentralizing our production sites and shifting a portion of our production activities to North America.
In terms of costs, we will strengthen our efforts toward events around the world as well as our market initiatives to bolster the appeal of our product brands, as we aim to sustain strong-performing categories and lay the foundation for medium-term growth beyond the upcoming fiscal year.
As for business highlights, the Toys and Hobby Business saw strong growth in sales from the Gundam series during the first half. This growth was not driven by any single product or category; rather, it was fueled by the collective strength of the Group as a whole—spanning Gundam model kits, trading cards, figurines, capsule toys, confectionery, and more—working in synergy with visual works.
The Gundam trading card game, launched in July, got off to a very solid start. With the aim of having the card game establish a lasting presence in the market, we will implement fine-tuned initiatives including launching new decks, holding events, and communicating the latest information. In the massive market of North America, we will implement an agile approach made possible through close collaboration with our local expert teams.
With regard to Gundam model kits, we commenced phased production at a new factory in July, with preparations underway for commencing full-scale production activities by summer 2026. Furthermore, we plan to launch a large-scale product in January 2026 as the final commemorative product of the 45th anniversary of Gundam model kits. Overseas, we have been actively opening directly operated stores, primarily in China and other Asian countries, to serve as contact points with fans.
For the Tamagotchi brand, Tamagotchi Paradise, launched in July, has gained worldwide popularity, and we have been rolling out numerous collaborations with local companies through our licensing businesses in each region. The global recognition of the Tamagotchi IP has been rising, and we will continue to develop this IP on a global basis moving forward.
Also, we have steadily expanded our confectionery business, which started as the candy toy business, into product lines such as collectible wafers, chocolates, and gummies. Drawing on our unique ability to create fun and tasty confectionery, we have developed this business into a strong competitor alongside established confectionery manufacturers. Overseas demand in the confectionery business, particularly in Asia, has been growing, so we aim for further expansion so that the business can serve as a familiar contact point with fans at everyday retail locations.

GUNDAM CARD GAME
enjoying a solid performance since launch
©SOTSU・SUNRISE
Worldwide popularity of Tamagotchi Paradise
©BANDAI

PG UNLEASHED 1/60
ν Gundam, slated to launch on January 2026
©SOTSU・SUNRISE
Expanding confectionery business
Gyogyotto Tsuri Gummies
CharaPaki Dinosaur Excavation Chocolate
©BANDAI

What is the situation in the Digital Business?

For the Digital Business in the second half, net sales from network content are expected to exceed those of the same period in the previous fiscal year due to the stable popularity of mainstay app titles. Moving ahead, network content will continue to serve as an earnings base for the Digital Business. In terms of home console games, differences in the title lineup compared with the second half of FY2025.3 will likely lead to a decline in sales volumes for both new and repeat titles. Furthermore, with the planned release of multiple new titles, including worldwide launches, we expect a higher concentration of development amortization as well as promotional and marketing expenses in the second half.
In network content, SD Gundam G Generation Eternal has continued to perform strongly, and going forward we aim to enhance fan engagement through collaborations with visual works, thereby cultivating the game into a long-lasting title. DRAGON BALL GEKISHIN SQUADRA, launched in September, has received high praise for its gameplay. As the game involves team-based battles, we are currently focused on increasing the player base as we work to establish a solid foundation for medium-term growth.
In home console games, LITTLE NIGHTMARES III, which launched globally in October, got off to a good start. We will strive to build further momentum for the title by implementing a broad range of marketing initiatives geared toward the year-end sales period. At the moment, titles such as Tamagotchi and DIGIMON have been enjoying massive success thanks to collaborations with the Toys and Hobby Business. For worldwide titles, we plan to launch CODE VEIN II and a DLC for ELDEN RING NIGHTREIGN. We aim to grow sales and further develop these titles as IP assets.
In addition, we have been making steady progress with the revisions to our development structure in the Digital Business, which we commenced during the previous Mid-term Plan. Looking ahead, in addition to building an optimized title portfolio, we will bolster our development capabilities so that we can continue to deliver high-quality titles.

DRAGON BALL GEKISHIN SQUADRA,
commenced service on September 10
©バード・スタジオ／集英社・東映アニメーション
©Bandai Namco Entertainment Inc.
️LITTLE NIGHTMARES III,
launched on October 10
Little Nightmares™III &
©Bandai Namco Entertainment Europe S.A.S.

CODE VEIN II,
slated to launch on January 29, 2026
©CODE VEIN™II &
©Bandai Namco Entertainment Inc.

What is the situation in the Visual and Music Business?

In the Visual and Music Business, we expect to record licensing income for titles such as the Gundam series, which saw robust sales of products and services in the first half. In addition to expecting an increase in event-related sales compared to the first half of the year, we are planning to release the video package of the Mobile Suit Gundam GQuuuuuuX TV animated series.
For Gundam titles, we plan to hold additional screenings of past Mobile Suit Gundam Wing titles, following the success of their 4K screenings to commemorate the 30th anniversary of the series. Mobile Suit Gundam Wing was the first title in the Gundam series to be released in North America and is thus very popular in the region as many fans “first Gundam.” Accordingly, we will examine further opportunities for the series moving forward. Starting at the end of October, we began screening a special theatrical release commemorating the 10th anniversary of Mobile Suit Gundam: Iron-Blooded Orphans. Also, in January 2026, we will finally release the film Mobile Suit Gundam Hathaway The Sorcery of Nymph Circe. Going forward, we will deliver visual works on an ongoing basis geared toward a variety of fan bases, thereby further strengthening our connections with fans. Moreover, in response to the growing global popularity of the series, we have brought Gundam websites communicating information to fans around the world under one unified GUNDAM Official Website. This site broadcasts multilingual information and free video content simultaneously to up to 90 countries. Furthermore, in April 2026, we will revise our organizational structure within the business Unit to consolidate Gundam-related functions and accelerate the global expansion of the IP.
Through the Visual and Music Business, we will further strengthen our IP creation capabilities so that we can continue to offer a wide array of IP.

4K special screening of Mobile Suit Gundam Wing:
Endless Waltz, held to commemorate its 30th anniversary,
met with high praise
©SOTSU・SUNRISE
Mobile Suit Gundam: Iron-Blooded Orphans Urdr-Hunt
released as special theatrical
film celebrating 10th anniversary of the series
©SOTSU・SUNRISE

MOBILE SUIT GUNDAM HATHAWAY The Sorcery
of Nymph Circe to be released
on January 30, 2026
©SOTSU・SUNRISE

What are the circumstances in the Amusement Business?

In the Amusement Business, in the second half we project a 5% increase in sales from existing amusement facilities in Japan, making for a full-year increase in sales of 5.5%. For amusement machines, the majority of sales of large-scale products took place in the first half, and in the second half we will focus on laying the groundwork for the future, including promoting development for the next fiscal year and beyond. From the perspective of costs, we expect to incur expenses pertaining to the opening of new large-scale amusement facilities.
In terms of business topics, we will continue to accelerate the opening of Bandai Namco Cross Stores, official stores of products and services, and IP retail stores. In December, we will open ONE PIECE BASE SHOP, a large-scale facility in Shinjuku Tokyo that will serve as the official flagship store for the ONE PIECE. The Amusement Business will oversee the planning, development, and operation of this facility, while the Toys and Hobby Business will engage in product development. By leveraging the strengths of our long-cultivated Groupwide collaborations, the ONE PIECE BASE SHOP will offer various one-of-a-kind experiences, along with exclusive merchandise not available anywhere else. We ask that you look forward in anticipation to the store opening.
In amusement machines, we are currently developing a ONE PIECE medal game machine and a new machine for the WANGAN MIDNIGHT series. In these ways, we will continue to provide products that fully leverage the strengths of Bandai Namco.

ONE PIECE BASE SHOP
©尾田栄一郎／集英社・フジテレビ
・東映アニメーション
©Bandai Namco Experience Inc.
ONE PIECE: Maboroshi no Hiseki to
Unmei no Haguruma, the first
medal game for the ONE PIECE,
currently in development
©尾田栄一郎／集英社・フジテレビ
・東映アニメーション
©Bandai Namco Experience Inc.

WANGAN MIDNIGHT SPEED
IGNITION amusement
machine currently in development
©Michiharu Kusunoki/Kodansha Ltd. All rights reserved.
GAME ©Bandai Namco Experience Inc.
All trademarks and copyrights associated with the manufacturers, vehicles, models, trade names, brands and visual images depicted in this game are the property of their respective owners, and used with such permissions.

The exhibit you held at Expo 2025 Osaka, Kansai, Japan, was a major initiative during the first half. Could you comment on that?

Yes, as you know, Expo 2025 Osaka, Kansai, Japan, came to a close on October 13. A total of over 1 million people visited our exhibit at the Expo, GUNDAM NEXT FUTURE PAVILION, and according to a survey conducted by a research firm targeting attendees of the Expo, our pavilion was highly evaluated for its immersive world-building and the hospitality of our staff members. In fact, the pavilion ranked No. 1^* in overall attendee satisfaction. A large number of people also communicated information on the pavilion via social media, given us a sense of the high level of attention it attracted.
As mentioned earlier in the review of our business performance and business topics, the buzz generated by the GUNDAM NEXT FUTURE PAVILION without a doubt contributed to the robust sales of products and services in the Gundam series. In addition to that, having people from all generations, from around the world, visit and experience the pavilion enabled us to form deeper connections with existing Gundam fans and served as an opportunity to connect with new ones. This makes me very happy. Seeing the smiles of everyone becoming connected via the pavilion firsthand was both a tremendous encouragement and valuable asset.

Final day at Expo 2025 Osaka, Kansai, Japan

(*1)■Data Source: Video Research Ltd. (ACR/ex)
■Survey Period: July 2025
■Survey Area: Kanto (within 50 km of Tokyo) and Kansai
■ Survey Respondents: Individuals aged 12 to 69 living in the survey area who have attended Expo 2025 Osaka, Kansai, Japan (700 samples)