HAPPINET CORPORATION Sees Declines in Earnings During 1H FY3/13, Full Year Earnings Estimates Also C

HAPPINET CORPORATION Sees Declines in Earnings During 1H FY3/13, Full Year Earnings Estimates Also Call for Declines

TOKYO--(BUSINESS WIRE)-- HAPPINET CORPORATION (TOKYO:7552), one of Japan's leading distributors of toys, video and music software, video games, and amusement products, saw declines in sales and operating, ordinary and net incomes of 13.9%, 56.5%, 55.7%, and 53.5% year-over-year to JPY76.2, JPY1.0, JPY1.0, and JPY0.7 billion respectively. This weak performance is attributed to low birth rates, diversification of consumer needs, weaker demand for packaged software due to online distribution of software and social games, a lack of leading products, and other factors, which plagued the entertainment market and contributed to the weaker first half earnings.

By business segment, the Toy Business recorded declines in sales and operating income fell by 4.9% and 33.3% year-over-year to JPY32.4 and JPY0.8 billion respectively. At the same time, sales and operating income of the Visual and Music Business declined by 22.4% and 68.2% year-over-year to JY20.7 and JPY0.1 billion. In the Video-Game Business, sales and operating income declined by 20.4% and 75.8% year-over-year to JPY13.1 and JPY0.09 billion respectively. In the Amusement Business, sales and operating income fell by 11.2% and 38.8% year-over-year to JPY9.9 and JPY0.6 billion respectively.

At the end of the first half of the fiscal year, total consolidated assets fell by JPY3.3 billion from the end of the previous year to JPY51.0 billion. Liabilities fell by JPY3.6 to JPY28.8 billion over the same period. Also, net assets grew by JPY0.3 to JPY22.1 billion.

HAPPINET revised down its full FY3/13 earnings estimates on November 2, 2012 due in part to weakening in demand for products of the Toys and Amusement Businesses, and stock clearance resulting from the weaker sales. At the same time, the Visual and Music, and Video-Game Business are expected to suffer from a lack of hit products. Consequently sales, and operating, ordinary, and net incomes are expected to decline by 14.2%, 40.3%, 40.4%, and 26.8% year-over-year to JPY170.0, JPY2.9, JPY3.0, and JPY1.8 billion respectively.

HAPPINET CORPORATION was originally founded in 1969 and is now one of the Japan's leading distributors of toys, video and music software, video games, and amusement products. The current name HAPPINET was assumed in 1991 when it underwent a merger with two other Bandai wholesalers with the goal of implementing strategies to cope with changing distribution systems to match changes in the market.

Kaoru Hosaka for information regarding HAPPINET CORPORATION
Investment Bridge Co., Ltd.
+81-3-5842-5765 (Japanese correspondence only)
happinet@cyber-ir.co.jp (English and Japanese correspondence)

KEYWORDS: United Kingdom Europe Asia Pacific Ireland Japan

INDUSTRY KEYWORDS:

The article HAPPINET CORPORATION Sees Declines in Earnings During 1H FY3/13, Full Year Earnings Estimates Also Call for Declines originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.