Bandai upbeat on full-year forecast

Bandai has revised upward its group profit estimates for the full year 2006 thanks mainly to better-than-expected sales of game software and windfall foreign exchange gains.
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The firm raised its net profit projection for the year to March 31st to 24.5 billion yen from the 23.5 billion yen figure which was released on January 10th. The newly projected net profit is up 73.2 percent from the previous year's level.

Namco Bandai now anticipates a group pre-tax profit of 45 billion yen for fiscal 2006, up from the previously estimated 40.5 billion yen and up 21.2 per cent from a year before.

The company traced the pre-tax and net profit revisions to brisk sales of handheld games software, greater stock dividend receipts from other firms, and currency gains from the Euro's sharp ascent against the Yen.

The positive developments more than offset a one-off loss from the depreciated values of its Hokkaido resort hotel and other domestic business bases under an asset-value impairment accounting method, it said.

Namco Bandai revised downward its fiscal 2006 group sales projection to 457 billion yen from the January estimate of 460 billion yen, but the newly anticipated sales are still 1.4 percent higher than the previous year's level.

The firm blamed the downward sales revision on an accounting step under which a greater portion of sales at its Hong Kong-based toy manufacturing arm to its marketing units in Europe, Japan and the United States was recognised as sales from trading within the group. The portion was deducted from its overall sales in making the latest estimate.

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