Aeon Fantasy Co., Ltd. is an operator of amusement centers, most of which are located inside of shopping centers operated by the Aeon group. The company also operates indoor playgrounds. Aeon Fantasy traces its roots to the amusement business launched by Yoshinori Tsuji (its first president) in 1988 as an internal project under JUSCO Co., Ltd. (now Aeon). Its first indoor amusement park, Fantasy Park, opened in July 1988 in Odate, Akita Prefecture and served as the prototype for Mollyfantasy, the company’s mainstay amusement center brand. Aeon Fantasy was established in February 1997, taking over management of 58 facilities the following month. As of end-FY02/21, Aeon Fantasy had a total of 859 facilities, 849 of which are managed directly; the other 10 are run by franchisees. 86% of the 431 facilities in Japan are in shopping centers operated by the Aeon group; 429 are located overseas, mainly in China and ASEAN countries. The proportion of facilities located overseas is rising steadily.
In Japan, most of the company’s outlets operate under the Mollyfantasy brand and are located in shopping centers operated by the Aeon group. However, starting with the PALO format that are opened in collaboration with movie theaters, the company is gradually opening an increasing number of facilities inside non-Aeon group shopping centers, home improvement centers, department stores, and other retailers outside the group.
Overseas, the company’s operations currently include 205 facilities in China; most of the other overseas facilities are located in ASEAN countries, including 98 in Malaysia and 53 in the Philippines (as of end-FY02/21). In contrast to operations in Japan, where the vast majority of outlets operate under the Mollyfantasy name, a large proportion of overseas outlets are indoor playgrounds that operate under the Kidzooona name and are located in retail space not associated with the Aeon group.
Aeon Fantasy announced its medium-term management plan in April 2021. Under the plan, the company will promote its business with a focus on business domain expansion in preparation for the new normal and IT-driven business structure reforms. The company’s target for FY02/24 is to achieve sales of JPY85.5bn and operating profit of JPY6.0bn. This represents a 15.2% increase in sales and a 29.0% increase in operating profit compared with FY02/19 results, before the company was affected by the COVID-19 pandemic.
Trends and outlook
In FY02/22, the company reported sales of JPY60.2bn (+30.5% YoY) and operating loss of JPY3.4bn (loss of JPY7.4bn in FY02/21). Operating loss from domestic operations was JPY1.6bn (loss of JPY6.1bn in FY02/21), the China operations booked an operating loss of JPY1.2bn (JPY36mn profit in FY02/21), and ASEAN operations generated an operating loss of JPY576mn (loss of JPY1.4bn in FY02/21). All regions were impacted by COVID-19, resulting in operating losses. However, the company achieved a turnaround to black in Q4 (December 2021–February 2022).
The company forecast for FY02/23 calls for sales of JPY78.9bn (+31.1% YoY), operating profit of JPY2.6bn (loss of JPY3.4bn in FY02/22), recurring profit of JPY1.7bn (loss of JPY3.4bn in FY02/22), and net income attributable to owners of parent of JPY400mn (net loss of JPY4.5bn in FY02/22). The company sees sales returning to pre-COVID levels and expects a shift to profit at all levels in FY02/23.
Strengths and weaknesses
Shared Research believes the company’s strengths are 1) firmly established store brands in Asia, 2) ability to source distinctive amusement equipment via a large facility network, strengthening differentiation, and 3) Aeon group’s power and strong capital position facilitates early market share gain in emerging markets. Weaknesses include its 1) shortage in personnel to accelerate expansion in Asia, 2) weak character branding, and 3) labor-intensive business model (see Strengths and weaknesses section for details).
Key financial data
Income statement
FY02/14
FY02/15
FY02/16
FY02/17
FY02/18
FY02/19
FY02/20
FY02/21
FY02/22
FY02/23
(JPYmn)
Cons.
Cons.
Cons.
Cons.
Cons.
Cons.
Cons.
Cons.
Cons.
Est.
Sales
46,542
46,632
58,832
65,059
72,174
74,244
73,493
46,116
60,171
78,900
YoY
3.7%
0.2%
26.2%
10.6%
10.9%
2.9%
-1.0%
-37.3%
30.5%
31.1%
Gross profit
5,466
5,667
6,544
7,977
10,812
10,005
8,727
-2,660
1,687
Gross profit margin
11.7%
12.2%
11.1%
12.3%
15.0%
13.5%
11.9%
-
2.8%
SG&A expenses
2,930
3,040
3,796
4,208
4,841
5,353
5,515
4,769
5,096
YoY
2.4%
3.8%
24.9%
10.8%
15.0%
10.6%
3.0%
-13.5%
6.9%
SG&A ratio
6.3%
6.5%
6.5%
6.5%
6.7%
7.2%
7.5%
10.3%
8.5%
Operating profit
2,536
2,627
2,748
3,769
5,971
4,652
3,212
-7,429
-3,408
2,600
YoY
-25.5%
3.6%
4.6%
37.2%
58.4%
-22.1%
-31.0%
-
-
-
Operating profit margin
5.4%
5.6%
4.7%
5.8%
8.3%
6.3%
4.4%
-
-
3.3%
Non-operating income (expenses)
109
789
-118
-271
-372
-352
-824
-290
23
Financial income
29
526
-61
-187
-225
-308
-652
-687
-543
Gains on foreign exchange
77
0
-313
-4
-5
-6
-25
110
466
Gain on sale of fixed assets
-26
236
264
-99
-215
-89
-165
-37
-22
Other non-operating income
29
26
-8
20
73
51
19
324
122
Recurring profit
2,645
3,415
2,631
3,499
5,598
4,300
2,387
-7,720
-3,385
1,700
YoY
-24.2%
29.1%
-23.0%
33.0%
60.0%
-23.2%
-44.5%
-
-
-
Recurring profit margin
5.7%
7.3%
4.5%
5.4%
7.8%
5.8%
3.2%
-
-
2.2%
Extraordinary gains
-101
-402
-177
-338
-518
-859
-1,735
-4,089
-1,399
Pre-tax profit
2,544
3,014
2,454
3,161
5,080
3,441
652
-11,808
-4,784
Income taxes
1,431
1,674
966
1,450
2,099
1,538
1,023
-2,298
-201
Implied tax rate
56.2%
55.6%
39.4%
45.9%
41.3%
44.7%
156.9%
-
-
Net income attributable to non-controlling interests
-4
3
7
13
-5
38
-46
-233
-75
Net income attributable to owners of parent
1,117
1,337
1,480
1,698
2,986
1,865
-325
-9,277
-4,508
400
YoY
-27.3%
19.6%
10.8%
14.7%
75.9%
-37.5%
-
-
-
-
Net margin
2.4%
2.9%
2.5%
2.6%
4.1%
2.5%
-
-
-
0.5%
Capital expenditures
8,529
9,873
13,468
7,408
12,342
12,476
13,159
7,529
Depreciation
5,077
4,804
6,203
6,594
7,207
8,356
10,815
10,698
10,518
EBITDA
7,613
7,431
8,951
10,363
13,177
13,008
14,027
3,333
7,153
YoY
1.7%
-2.4%
20.5%
15.8%
27.2%
-1.3%
7.8%
-76.2%
114.6%
EBITDA margin
16.4%
15.9%
15.2%
15.9%
18.3%
17.5%
19.1%
7.2%
11.9%
Per-share data
FY02/14
FY02/15
FY02/16
FY02/17
FY02/18
FY02/19
FY02/20
FY02/21
FY02/22
FY02/23
Cons.
Cons.
Cons.
Cons.
Cons.
Cons.
Cons.
Cons.
Cons.
Est.
No. of oustanding shares at year-end('000 shares)
18,176
18,176
19,714
19,714
19,714
19,728
19,752
19,762
19,769
Treasury shares
36
29
21
11
6
1
1
2
2
Shares outstanding (average; '000)
18,138
18,144
19,302
19,698
19,707
19,719
19,745
19,759
19,765
Book value per share (JPY)
1,118
1,171
1,239
1,283
1,409
1,449
1,349
845
592
EPS (JPY)
61.6
73.8
76.7
86.2
151.5
94.6
-16.5
-469.5
-228.1
20.2
EPS (fully diluted; JPY)
61.4
73.5
76.4
85.9
151.0
94.3
-
-
-
Dividend per share (JPY)
30.0
30.0
30.0
31.0
41.0
50.0
50.0
30.0
20.0
20.0
Payout ratio
48.7%
40.7%
39.9%
36.0%
27.1%
52.9%
-
-
-
-
Source: Shared Research based on company data
Balance sheet (JPYmn)
FY02/14
FY02/15
FY02/16
FY02/17
FY02/18
FY02/19
FY02/20
FY02/21
FY02/22
Current assets
11,239
7,990
8,716
11,260
10,347
9,936
11,865
12,019
10,920
Cash and deposits
3,246
3,369
3,725
4,542
4,632
4,534
4,132
5,718
6,008
Trade receivables
0
356
337
304
179
237
261
210
233
Sales deposits paid
102
1,251
460
586
664
527
2,904
1,702
303
Inventories
1,054
1,605
2,217
2,227
2,426
2,786
2,798
2,367
2,208
Deposits paid in subsidiaries
6,000
0
0
1,900
500
0
0
0
0
Other current assets
837
1,409
1,978
1,700
1,946
1,853
1,770
2,021
2,168
Tangible fixed assets
12,890
17,939
26,316
26,041
30,164
32,634
36,996
32,540
30,227
Intangible assets
949
825
767
755
1,060
1,014
1,019
1,187
1,478
Investments and other assets
2,901
3,288
5,241
5,273
5,357
5,344
5,859
8,216
8,611
Leasehold and guarantee deposits
2,175
2,452
3,791
3,942
4,059
4,172
4,221
4,346
4,374
Other
726
836
1,451
1,330
1,298
1,172
1,638
3,870
4,236
Total assets
27,978
30,041
41,041
43,329
46,928
48,928
55,740
53,962
51,235
Current liabilities
7,032
7,956
11,132
11,001
11,083
13,281
19,068
29,442
31,509
Accounts payable
995
808
1,160
1,054
1,320
1,225
1,161
1,160
1,261
Short-term debt
0
150
1,431
0
0
2,171
5,403
21,672
24,545
Other payables
957
407
1,186
1,042
979
953
921
936
1,518
Accrued expenses
850
1,155
1,554
1,798
1,974
1,986
1,678
1,742
1,441
Income taxes payable
1,232
1,154
99
1,127
1,517
680
563
575
311
Notes payable–facilities
1,868
2,187
1,975
1,574
1,842
1,468
1,867
1,152
682
Other current liabilities
1,131
2,095
3,728
4,405
3,451
4,798
7,477
2,205
1,751
Noncurrent liabilities
327
476
5,165
6,708
7,477
6,427
9,542
7,597
7,884
Long-term debt
0
0
4,272
5,488
6,094
5,331
4,466
6,257
6,489
Other
327
476
893
1,220
1,383
1,097
5,076
1,340
1,396
Net assets
20,619
21,609
24,744
25,620
28,369
29,220
27,129
16,923
11,842
Shareholders' equity
19,758
20,551
24,546
25,663
28,020
28,930
27,231
17,190
12,106
Treasury stock
-57
-47
-33
-17
-12
-3
-3
-3
-4
Accumulated comprehensive income
521
693
-138
-377
-252
-338
-593
-495
-414
Share subscription rights
66
69
90
94
122
112
67
49
31
Net income attributable to non-controlling interests
274
295
245
240
479
516
423
179
118
Total capital and liabilities
27,978
30,041
41,041
43,329
46,928
48,928
55,740
53,962
51,235
Cash flow statement (JPYmn)
FY02/14
FY02/15
FY02/16
FY02/17
FY02/18
FY02/19
FY02/20
FY02/21
FY02/22
Cash flows from operating activities
6,674
3,571
8,157
10,350
10,672
9,589
10,271
184
6,177
Cash flows from investing activities
-8,023
-3,147
-12,572
-7,661
-11,417
-12,069
-10,850
-6,965
-7,091
Cash flows from financing activities
-820
-395
4,285
112
-507
1,862
97
8,446
1,395
Financial ratios
FY02/14
FY02/15
FY02/16
FY02/17
FY02/18
FY02/19
FY02/20
FY02/21
FY02/22
Interest-bearing debt
0
150
6,108
6,632
7,028
9,766
12,738
27,929
31,034
Net cash
9,246
3,219
-2,383
-189
-1,895
-5,232
-8,605
-22,211
-25,026
ROE(ROE)
5.6%
6.4%
6.5%
6.8%
11.3%
6.6%
-1.2%
-42.8%
-31.8%
ROA (RP-based)(ROA)
9.7%
11.8%
7.4%
8.3%
12.4%
9.0%
4.6%
-14.1%
-6.4%
Equity ratio
72.5%
70.7%
59.5%
58.4%
59.2%
58.4%
47.8%
30.9%
22.8%
Source: Shared Research based on company data
Recent updates
Monthly sales data for April 2022
2022-05-16
Aeon Fantasy Co., Ltd. announced monthly sales data for April 2022.
Sales in Japan (JPYmn)
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
1,764
802
680
2,639
3,383
4,284
3,642
3,938
4,071
4,505
4,775
3,740
3,246
13,552
25,203
38,223
FY02/22
4,287
3,633
3,320
3,113
4,406
4,958
3,886
4,210
4,182
5,066
5,526
3,816
11,240
23,717
35,995
50,403
FY02/23
4,685
4,153
Existing facilities
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
-68.6%
-83.8%
-86.6%
-42.0%
-33.1%
-38.5%
-26.4%
-9.7%
-6.8%
-11.0%
-19.6%
-12.1%
-79.2%
-57.5%
-44.6%
-37.1%
FY02/22
150.4%
373.0%
402.1%
15.2%
28.9%
15.5%
6.9%
6.6%
1.7%
11.6%
15.6%
0.2%
256.1%
75.0%
42.6%
31.4%
FY02/23
9.7%
15.8%
All facilities
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
-67.9%
-83.2%
-85.7%
-41.6%
-32.8%
-37.6%
-24.8%
-8.1%
-5.6%
-10.2%
-17.5%
-10.0%
-80.2%
-58.2%
-45.1%
-37.8%
FY02/22
142.9%
352.7%
388.3%
18.0%
30.3%
15.7%
6.7%
6.9%
2.7%
12.5%
15.7%
2.0%
246.2%
75.0%
42.8%
31.9%
FY02/23
9.5%
14.3%
No. of facilities: Japan
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
432
432
432
432
432
431
429
428
430
431
430
429
432
431
430
429
FY02/22
429
431
431
432
432
432
431
432
432
432
430
429
431
432
432
429
FY02/23
526
528
Overseas openings (FY02/22)
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
China
-
1
-
2
1
1
-
-
-
-
-
-
1
5
5
5
Malaysia
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Thailand
-
1
-
-
-
-
-
-
-
-
-
-
1
1
1
1
Philippines
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Indonesia
-
1
-
-
-
-
-
-
-
-
1
-
1
1
1
2
Cambodia
-
-
-
-
-
-
-
-
Vietnam
-
2
-
-
-
-
-
-
-
-
-
-
2
2
2
2
海外出店数 FY02/23
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
China
-
5
5
5
5
5
Malaysia
-
-
-
-
-
-
Thailand
-
-
-
-
-
-
Philippines
2
-
2
2
2
2
Indonesia
-
-
-
-
-
-
Cambodia
3
3
3
3
3
Vietnam
3
-
3
3
3
3
China
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
-99.1%
-90.5%
-52.7%
-32.2%
-25.9%
-20.3%
-2.6%
10.0%
-2.8%
-8.1%
28.9%
-
-77.1%
-42.0%
-29.2%
-6.9%
FY02/22
12,765.7%
13,942.5%
123.3%
35.2%
21.3%
-37.1%
-1.7%
-9.6%
-18.6%
-40.5%
-18.8%
-37.2%
436.4%
49.8%
24.4%
3.6%
FY02/23
-45.7%
-62.1%
Malaysia
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
-77.5%
-99.2%
-99.3%
-99.4%
-88.6%
-69.8%
-63.3%
-84.1%
-95.3%
-83.5%
-82.0%
-10.0%
-91.3%
-88.2%
-85.4%
-81.3%
FY02/22
145.0%
6,753.2%
1,344.1%
-53.1%
-98.9%
-99.2%
-96.5%
104.1%
1,375.5%
287.5%
465.8%
51.3%
332.9%
58.4%
61.5%
109.6%
FY02/23
18.8%
87.8%
Thailand
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
-88.7%
-
-99.9%
-92.6%
-66.2%
-40.1%
-21.7%
-37.2%
-12.5%
-63.1%
-98.9%
-59.2%
-96.3%
-81.4%
-65.5%
-68.1%
FY02/22
207.2%
12,392.8%
-99.7%
-
-
-
-99.9%
-97.8%
-74.0%
29.6%
1,509.2%
10.2%
351.8%
-51.6%
-74.7%
-53.0%
FY02/23
-12.1%
66.1%
Philippines
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/20
-5.5%
-13.0%
-0.2%
4.1%
-13.0%
6.4%
-9.4%
-3.9%
-7.0%
-1.1%
-5.0%
-27.4%
-6.3%
-3.7%
-4.7%
-6.0%
FY02/21
-78.2%
-
-
-
-
-
-
-
-
-
-
-
-93.1%
-96.4%
-97.6%
-98.2%
FY02/22
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32.1%
905.0%
FY02/23
-
-
Indonesia
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
-79.4%
-
-
-99.1%
-93.9%
-84.8%
-87.2%
-84.1%
-71.3%
-75.9%
-83.3%
-79.1%
-92.4%
-93.0%
-89.2%
-86.6%
FY02/22
95.2%
-
-
2,606.9%
29.5%
-77.6%
6.4%
89.2%
157.7%
172.1%
295.3%
62.0%
732.3%
428.2%
225.4%
201.8%
FY02/23
79.4%
126.3%
Vietnam
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
FY02/21
-85.2%
-
-32.7%
-38.7%
9.6%
-72.4%
-29.0%
-0.7%
6.4%
-29.8%
-32.2%
-60.6%
-74.3%
-48.2%
-34.2%
-34.3%
FY02/22
407.1%
-
-62.4%
-98.9%
-
-
-
-99.3%
-86.4%
5.6%
14.2%
291.5%
145.9%
-53.8%
-72.3%
-40.7%
FY02/23
-3.0%
35.8%
FY02/20 vs. FY02/22
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
All facilities: Japan
-22.1%
-23.9%
-30.2%
-31.1%
-12.5%
-27.7%
-19.8%
-1.8%
-3.0%
1.0%
-4.6%
-8.2%
-25.2%
-24.6%
-19.8%
-15.8%
Existing facilities: Japan
-20.2%
-24.2%
-32.7%
-33.2%
-13.9%
-29.1%
-21.5%
-4.0%
-5.4%
-0.8%
-7.2%
-11.8%
-25.4%
-25.5%
-21.1%
-17.4%
Comparable business days
-12.9%
-22.7%
-36.0%
-27.3%
-18.5%
-28.8%
-16.9%
-2.6%
-5.4%
2.1%
-8.1%
-7.3%
-23.9%
-24.5%
-19.7%
-15.9%
Business day impact
-7.3%
-1.5%
3.3%
-5.9%
4.6%
0.3%
-4.6%
-1.4%
0.0%
-2.9%
0.9%
-4.5%
1.5%
-1.0%
-1.4%
-1.5%
Existing facilities: Overseas
-28.1%
-24.8%
-34.4%
-42.8%
-37.7%
-63.9%
-47.8%
-32.1%
-31.5%
-39.0%
-16.4%
399.5%
-29.7%
-41.8%
-40.3%
-31.4%
China
15.6%
25.2%
6.4%
-7.9%
-9.2%
-49.8%
-3.4%
-0.1%
-20.4%
-44.2%
-2.2%
-
14.3%
-13.0%
-11.5%
-3.9%
Malaysia
-44.6%
-49.6%
-89.7%
-99.7%
-99.9%
-99.7%
-98.6%
-67.7%
-33.4%
-39.9%
1.0%
28.6%
-60.7%
-81.0%
-76.3%
-61.8%
Thailand
-64.3%
-81.9%
-
-
-
-
-99.9%
-98.6%
-76.0%
-51.2%
-73.4%
-53.7%
-81.5%
-90.3%
-90.9%
-84.1%
Philippines
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-96.7%
-81.3%
Indonesia
-53.3%
-47.3%
-28.9%
-68.2%
-88.6%
-95.5%
-84.3%
-42.6%
-0.1%
-17.9%
3.2%
-27.0%
-41.6%
-61.8%
-57.1%
-45.1%
Vietnam
-19.3%
-20.0%
-75.1%
-99.3%
-
-
-
-99.4%
-86.0%
-32.5%
-27.2%
1,833.5%
-37.3%
-75.7%
-82.2%
-60.6%
FY 02/19 vs. FY02/23
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Q1
Q1–Q2
Q1–Q3
Q1–Q4
All facilities: Japan
-14.7%
-13.0%
Existing facilities: Japan
-14.3%
-12.3%
Comparable business days
-8.1%
-5.2%
Business day impact
-6.2%
-7.1%
Existing facilities: Overseas
-36.9%
-42.9%
China
-36.8%
-59.0%
Malaysia
-30.0%
3.6%
Thailand
-66.1%
-60.6%
Philippines
-
-
Indonesia
-9.8%
-19.4%
Vietnam
-24.2%
8.6%
Revision to the earnings forecast
2022-04-05
On April 4, 2022, Aeon Fantasy Co., Ltd. announced a revision to its full-year earnings forecast.
Revision of forecast for full-year FY02/22
Sales: JPY60.2bn (previous forecast: JPY60.0bn)
Operating loss: JPY3.4bn (loss of JPY2.5bn)
Recurring loss: JPY3.4bn (loss of JPY3.0bn)
Net loss attributable to owners of parent: JPY4.5bn (net loss of JPY4.2bn)
EPS: -JPY229.20 (-JPY209.99)
Reasons for the revision
Results by business in FY02/22 were as follows.
In the China business, sales recovered to pre-pandemic levels for the most part in September and October 2021, but in Q4 (December 2021–February 2022), sales fell below previous projections due to strengthened pandemic-related regulations imposed by the Chinese government amid the spread of COVID-19.
In the Domestic business, the last state of emergency was lifted at end-September 2021, and sales had been on a recovery track since then. However, due to the spread of the Omicron variant in January 2022, customer footfall fell, with sales undershooting previous expectations.
In the ASEAN business, resumption of facility operations sped up in 2H (September 2021–February 2022) as previously expected, and the business moved into the black at the operating profit level in Q4.
As a result of the above, in FY02/22 sales exceeded the previous forecast due to sales growth at overseas subsidiaries as the value of yen fell below the forex assumptions made for the previously revised forecast. Meanwhile, operating profit, recurring profit, and net income attributable to owners of parent are expected to finish the year below previous projections.
In the Domestic business, sales in December 2021 were 2.1% above the December 2019 levels (adjusted for differences in business days). Sales from online crane games were up YoY, and in the prizes division, the company offered prizes developed in collaboration with other parties and prizes only the company offered, driving 2H sales above the 2H FY02/20 levels. The Domestic business turned a profit at the operating profit level in Q4.
Trends and outlook
Quarterly trends and results
Cumulative
FY02/21
FY02/22
FY02/22
(JPYmn)
Q1
Q1-Q2
Q1-Q3
Q1-Q4
Q1
Q1-Q2
Q1-Q3
Q1-Q4
% of Est.
FY Est.
Sales
3,677
16,381
30,231
46,116
13,320
28,194
42,625
60,171
100.0%
60,170
YoY
-79.6%
-58.0%
-45.7%
-37.3%
262.3%
72.1%
41.0%
30.5%
30.5%
Cost of sales
6,627
19,880
33,886
48,777
13,784
28,292
42,744
58,483
YoY
-59.2%
-40.3%
-30.9%
-24.7%
108.0%
42.3%
26.1%
19.9%
Gross profit
-2,950
-3,499
-3,655
-2,660
-463
-98
-119
1,687
YoY
-
-
-
-
-
-
-
-
Gross profit margin
-
-
-
-
-
-
-
2.8%
SG&A expenses
1,185
2,300
3,542
4,769
1,297
2,482
3,812
5,096
YoY
-17.4%
-18.0%
-15.2%
-13.5%
9.4%
7.9%
7.6%
6.9%
SG&A ratio
32.2%
14.0%
11.7%
10.3%
9.7%
8.8%
8.9%
8.5%
Operating profit
-4,136
-5,799
-7,197
-7,429
-1,760
-2,580
-3,930
-3,408
-
-3,410
YoY
-
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
-
-
Recurring profit
-4,280
-6,097
-7,420
-7,720
-1,739
-2,863
-4,013
-3,385
-
-3,390
YoY
-
-
-
-
-
-
-
-
-
Recurring profit margin
-
-
-
-
-
-
-
-
-
Net income
-5,620
-7,116
-8,556
-9,277
-2,091
-3,502
-4,687
-4,508
-
-4,530
YoY
-
-
-
-
-
-
-
-
-
Net margin
-
-
-
-
-
-
-
-
-
Quarterly
FY02/21
FY02/22
(JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Sales
3,677
12,704
13,850
15,886
13,320
14,873
14,432
17,545
YoY
-79.6%
-39.4%
-17.2%
-10.7%
262.3%
17.1%
4.2%
10.4%
Cost of sales
6,627
13,253
14,006
14,891
13,784
14,508
14,452
15,739
YoY
-59.2%
-22.4%
-10.9%
-5.4%
108.0%
9.5%
3.2%
5.7%
Gross profit
-2,950
-549
-156
994
-463
365
-21
1,806
YoY
-
-
-
-51.8%
-
-
-
81.6%
Gross profit margin
-80.2%
-4.3%
-1.1%
6.3%
-3.5%
2.5%
-0.1%
10.3%
Gross profit margin
-
-
-
6.3%
-
2.5%
-
10.3%
SG&A expenses
1,185
1,114
1,242
1,227
1,297
1,184
1,330
1,284
YoY
-17.4%
-18.6%
-9.4%
-8.4%
9.4%
6.3%
7.1%
4.7%
SG&A ratio
32.2%
8.8%
9.0%
7.7%
9.7%
8.0%
9.2%
7.3%
Operating profit
-4,136
-1,663
-1,398
-232
-1,760
-819
-1,351
522
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
3.0%
Recurring profit
-4,280
-1,817
-1,323
-299
-1,739
-1,124
-1,150
628
YoY
-
-
-
-
-
-
-
-
Recurring profit margin
-
-
-
-
-
-
-
3.6%
Net income
-5,620
-1,496
-1,440
-721
-2,091
-1,411
-1,186
180
YoY
-
-
-
-
-
-
-
-
Net margin
-
-
-
-
-
-
-
1.0%
Source: Shared Research based on company data
Segment earnings
By segment
FY02/21
FY02/22
Cumulative (JPYmn)
Q1
Q1-Q2
Q1-Q3
Q1-Q4
Q1
Q1-Q2
Q1-Q3
Q1-Q4
Sales
3,677
16,381
30,231
46,116
13,320
28,194
42,625
60,171
YoY
-79.6%
-58.0%
-45.7%
-37.3%
262.3%
72.1%
41.0%
30.5%
Japan
3,248
13,554
25,206
38,227
11,242
23,720
36,001
50,410
YoY
-78.4%
-56.9%
-43.9%
-36.1%
246.2%
75.0%
42.8%
31.9%
Overseas
467
2,894
5,140
8,023
2,125
4,530
6,687
9,831
YoY
-84.7%
-62.4%
-53.4%
-42.1%
354.8%
56.5%
30.1%
22.5%
China
328
2,512
4,379
6,895
1,641
3,995
5,746
7,721
YoY
-78.3%
-44.7%
-31.1%
-9.8%
400.4%
59.1%
31.2%
12.0%
ASEAN
139
383
761
1,128
484
535
941
2,109
YoY
-91.0%
-87.9%
-83.7%
-81.8%
247.5%
39.8%
23.7%
87.0%
Adjustments
-38
-67
-116
-134
-47
-57
-63
-71
Operating profit
-4,136
-5,799
-7,197
-7,429
-1,760
-2,580
-3,930
-3,408
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
-
Japan
-3,347
-4,818
-5,734
-6,080
-1,042
-1,596
-2,309
-1,600
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
-
Overseas
-789
-980
-1,461
-1,363
-738
-983
-1,621
-1,807
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
-
China
-378
-156
-273
36
-517
-470
-926
-1,231
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
0.5%
-
-
-
-
ASEAN
-411
-824
-1,189
-1,400
-221
-513
-695
-576
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
-
Adjustments
-1
-1
-1
14
20
-1
-1
-1
By segment
FY02/21
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Sales
3,677
12,704
13,850
15,886
13,320
14,873
14,432
17,545
YoY
-79.6%
-39.4%
-17.2%
-10.7%
262.3%
17.1%
4.2%
10.4%
Japan
3,248
10,306
11,653
13,021
11,242
12,478
12,280
14,409
YoY
-78.4%
-37.2%
-13.3%
-13.0%
246.2%
21.1%
5.4%
10.7%
Overseas
467
2,427
2,246
2,884
2,125
2,405
2,157
3,144
YoY
-84.7%
-47.7%
-32.6%
2.2%
354.8%
-0.9%
-3.9%
9.0%
China
328
2,184
1,868
2,516
1,641
2,354
1,751
1,975
YoY
-78.3%
-28.0%
3.0%
95.5%
400.4%
7.8%
-6.2%
-21.5%
ASEAN
139
243
378
368
484
51
406
1,168
YoY
-91.0%
-84.8%
-75.2%
-76.0%
247.5%
-79.0%
7.4%
217.9%
Adjustments
-38
-29
-48
-19
-47
-10
-6
-8
Operating profit
-4,136
-1,663
-1,398
-232
-1,760
-819
-1,351
522
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
3.0%
Japan
-3,347
-1,471
-916
-346
-1,042
-554
-713
709
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
4.9%
Overseas
-789
-191
-482
98
-738
-245
-638
-186
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
3.4%
-
-
-
-
China
-378
222
-117
309
-517
47
-456
-305
YoY
-
-43.8%
-
-
-
-78.8%
-
-
Operating profit margin
-
10.2%
-
12.3%
-
2.0%
-
-
ASEAN
-411
-413
-365
-211
-221
-292
-181
118
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
10.1%
Adjustments
-1
-0
-0
15
20
-20
-0
-0
Source: Shared Research based on company data Note: Earnings estimates for FY02/22 are based on the previously revised forecast.
Seasonality: The Chinese operation is prone to large fluctuations in earnings due to seasonal factors in each quarter. Q2 and Q4 are periods of high demand, while demand tends to decline in Q1 and Q3. Q1 (March–May) is affected by a lack of school holidays and restraint in purchasing following the Chinese New Year, with March marking a low point. Q3 includes the Mid-Autumn Festival (15th day of the 8th month of the lunar calendar, which corresponds to late September to early October of the Western calendar) and the National Foundation holidays (October), with September marking the low point. Conversely, Q4 coincides with the Chinese New Year holidays (first month of the lunar calendar, which corresponds to the period from late January to early February of the Western calendar), which affect monthly sales. (When the holiday period shifts into February, January sales worsen.)
Parent (Japan) earnings
Parent: Japan
FY02/21
FY02/22
Cumulative (JPYmn)
Q1
Q1-Q2
Q1-Q3
Q1-Q4
Q1
Q1-Q2
Q1-Q3
Q1-Q4
Sales
3,247
13,553
25,205
38,227
11,242
23,720
36,000
50,409
YoY
-78.4%
-56.9%
-43.9%
-36.1%
246.2%
75.0%
42.8%
31.9%
Sales breakdown
Time-based
48
294
594
867
281
630
987
1,419
Physical activities
191
826
1,497
2,120
652
1,388
2,088
2,866
Cards
458
1,524
2,749
4,190
1,259
2,682
4,131
5,716
Medals
694
2,498
4,671
6,825
2,024
4,382
6,580
9,188
Prizes
1,547
7,286
13,609
21,082
6,307
13,120
19,898
27,939
Stickers
80
285
516
723
236
448
632
849
Capsules
105
371
672
1,061
371
870
1,398
2,075
Cost of sales
5,780
16,806
28,514
41,063
11,359
23,616
35,673
48,511
YoY
-55.7%
-36.5%
-26.5%
-20.6%
96.5%
40.5%
25.1%
18.1%
Gross profit
-2,533
-3,252
-3,308
-2,838
-117
103
326
1,896
YoY
-
-
-
-
-
-
-
-
Gross profit margin
-
-
-
-
-
0.4%
0.9%
3.8%
SG&A expenses
812
1,563
2,422
3,241
924
1,698
2,633
3,494
YoY
-15.3%
-16.1%
-13.3%
-11.5%
13.8%
8.6%
8.7%
7.8%
SG&A ratio
25.0%
11.5%
9.6%
8.5%
8.2%
7.2%
7.3%
6.9%
Operating profit
-3,346
-4,817
-5,732
-6,079
-1,041
-1,595
-2,307
-1,599
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
-
No. of facilities
434
433
432
431
431
432
432
516
Parent: Japan
FY02/21
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Sales
3,247
10,306
11,652
13,020
11,242
12,478
12,280
14,409
YoY
-78.4%
-37.2%
-13.3%
-13.0%
246.2%
21.1%
5.4%
10.7%
Sales breakdown
Time-based
48
246
301
272
281
349
356
432
Physical activities
191
635
670
623
652
736
700
778
Cards
458
1,066
1,225
1,440
1,259
1,422
1,449
1,585
Medals
694
1,803
2,173
2,154
2,024
2,358
2,198
2,608
Prizes
1,547
5,738
6,323
7,474
6,307
6,813
6,779
8,040
Stickers
80
205
231
208
236
212
184
216
Capsules
105
266
301
389
371
499
528
677
Existing stores(YoY)
Existing stores(vs FY02/20)
Time-based
-91.5%
-58.7%
-40.8%
-43.4%
-52.5%
-49.8%
-30.4%
-14.9%
Physical activities
-81.5%
-40.3%
-21.5%
-29.9%
-36.5%
-36.2%
-20.5%
-17.2%
Cards
-76.6%
-40.5%
-29.3%
-18.2%
-35.6%
-22.7%
-15.6%
-6.2%
Medals
-80.9%
-57.9%
-37.9%
-43.7%
-44.4%
-48.2%
-38.8%
-34.5%
Prizes
-78.6%
-25.6%
1.1%
2.7%
-12.0%
-16.2%
4.9%
6.5%
Stickers
-80.6%
-41.5%
-14.4%
-26.5%
-41.0%
-41.7%
-33.1%
-28.9%
Capsules
-18.7%
110.0%
198.2%
215.8%
170.0%
168.1%
155.0%
120.2%
Total
-79.2%
-37.8%
-14.8%
-14.6%
-25.4%
-25.6%
-10.7%
-6.4%
Cost of sales
5,780
11,026
11,708
12,549
11,359
12,257
12,057
12,838
YoY
-55.7%
-17.8%
-5.0%
-2.9%
96.5%
11.2%
3.0%
2.3%
Gross profit
-2,533
-719
-56
471
-117
220
223
1,570
YoY
-
-
-
-76.9%
-
-
-
233.3%
Gross profit margin
-
-
-
3.6%
-
1.8%
1.8%
12.2%
SG&A expenses
812
751
859
817
924
774
935
861
YoY
-15.3%
-17.0%
-7.4%
-6.3%
13.8%
3.1%
8.8%
5.4%
SG&A ratio
25.0%
7.3%
7.4%
6.3%
8.2%
6.2%
7.6%
6.0%
Operating profit
-3,346
-1,471
-915
-345
-1,041
-554
-712
708
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
4.9%
No. of facilities
434
433
432
431
431
432
432
516
Sales per facility
7
24
27
30
26
29
28
30
Cost per facility
13
25
27
29
26
28
28
27
GP per facility
-5.83
-1.66
-0.13
1.09
-0.27
0.51
0.52
3.31
SG&A per facility
1.87
1.73
1.99
1.89
2.14
1.79
2.16
1.82
Source: Shared Research based on company data * In Q4 FY02/22 (December 2021 – February 2022) the company altered its criteria for inclusion in the store count, adding Toys Spot Palo and Tiny Mollyfantasy.
Overseas business earnings
Overseas
FY02/21
FY02/22
Cumulative (JPYmn)
Q1
Q1-Q2
Q1-Q3
Q1-Q4
Q1
Q1-Q2
Q1-Q3
Q1-Q4
Sales
467
2,894
5,140
8,023
2,125
4,530
6,687
9,831
YoY
-84.7%
-62.4%
-53.4%
-42.1%
354.8%
56.5%
30.1%
22.5%
China
328
2,512
4,379
6,895
1,641
3,995
5,746
7,721
YoY
-78.3%
-44.7%
-31.1%
-9.8%
400.4%
59.1%
31.2%
12.0%
ASEAN
139
383
761
1,128
484
535
941
2,109
YoY
-91.0%
-87.9%
-83.7%
-81.8%
247.5%
39.8%
23.7%
87.0%
Operating profit
-789
-980
-1,461
-1,363
-738
-983
-1,621
-1,807
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
-
China
-378
-156
-273
36
-517
-470
-926
-1,231
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
0.5%
-
-
-
-
ASEAN
-411
-824
-1,189
-1,400
-221
-513
-695
-576
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
-
No. of facilities
440
432
428
429
422
413
408
425
China
Sales
327
2,511
4,379
6,895
1,640
3,994
5,746
7,721
YoY
-78.3%
-44.7%
-31.1%
-9.8%
401.5%
59.1%
31.2%
12.0%
Operating profit
-377
-155
-272
36
-516
-469
-926
-1,230
Operating profit margin
-
-
-
0.5%
-
-
-
-
Malaysia
Sales
53
145
271
454
239
240
451
931
YoY
-91.3%
-88.4%
-85.8%
-82.0%
350.9%
65.5%
66.4%
105.1%
Operating profit
-219
-440
-661
-720
-98
-224
-328
-343
Operating profit margin
-
-
-
-
-
-
-
-
Thailand
Sales
8
77
195
238
51
51
70
147
YoY
-96.1%
-80.9%
-66.3%
-68.0%
537.5%
-33.8%
-64.1%
-38.2%
Operating profit
-45
-86
-110
-163
-37
-62
-90
-134
Operating profit margin
-
-
-
-
-
-
-
-
Philippines
Sales
29
29
29
29
0
0
40
309
YoY
-92.7%
-96.3%
-97.5%
-98.1%
-
-
37.9%
965.5%
Operating profit
-36
-73
-126
-154
-27
-66
-77
45
Operating profit margin
-
-
-
-
-
-
-
14.6%
Indonesia
Sales
20
19
64
134
111
154
279
529
YoY
-91.6%
-96.2%
-91.3%
-86.5%
455.0%
710.5%
335.9%
294.8%
Operating profit
-56
-153
-201
-236
-15
-58
-55
-41
Operating profit margin
-
-
-
-
-
-
-
-
Vietnam
Sales
26
110
198
270
80
88
97
191
YoY
-74.3%
-50.2%
-35.7%
-31.5%
207.7%
-20.0%
-51.0%
-29.3%
Operating profit
-41
-48
-58
-83
-31
-83
-124
-84
Operating profit margin
-
-
-
-
-
-
-
-
Overseas
FY02/21
FY02/22
Quarterly (JPYmn)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Sales
467
2,427
2,246
2,884
2,125
2,405
2,157
3,144
YoY
-84.7%
-47.7%
-32.6%
2.2%
354.8%
-0.9%
-3.9%
9.0%
China
328
2,184
1,868
2,516
1,641
2,354
1,751
1,975
YoY
-78.3%
-28.0%
3.0%
95.5%
400.4%
7.8%
-6.2%
-21.5%
ASEAN
139
243
378
368
484
51
406
1,168
YoY
-91.0%
-84.8%
-75.2%
-76.0%
247.5%
-79.0%
7.4%
217.9%
Operating profit
-789
-191
-482
98
-738
-245
-638
-186
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
3.4%
-
-
-
-
China
-378
222
-117
309
-517
47
-456
-305
YoY
-
-43.8%
-
-
-
-78.8%
-
-
Operating profit margin
-
10.2%
-
12.3%
-
2.0%
-
-
ASEAN
-411
-413
-365
-211
-221
-292
-181
118
YoY
-
-
-
-
-
-
-
-
Operating profit margin
-
-
-
-
-
-
-
10.1%
No. of facilities
440
432
428
429
422
413
408
425
China
Sales
327
2,184
1,868
2,516
1,640
2,354
1,752
1,975
YoY
-78.3%
-28.0%
3.0%
95.5%
401.5%
7.8%
-6.2%
-21.5%
Operating profit
-377
222
-117
308
-516
47
-457
-304
Operating profit margin
-
10.2%
-
12.2%
-
2.0%
-
-
Malaysia
Sales
53
92
126
183
239
1
211
480
YoY
-91.3%
-85.7%
-80.8%
-69.9%
350.9%
-98.9%
67.5%
162.3%
Operating profit
-219
-221
-221
-59
-98
-126
-104
-15
Operating profit margin
-
-
-
-
-
-
-
-
Thailand
Sales
8
69
118
43
51
-
19
77
YoY
-96.1%
-65.2%
-32.6%
-73.9%
537.5%
-
-83.9%
79.1%
Operating profit
-45
-41
-24
-53
-37
-25
-28
-44
Operating profit margin
-
-
-
-
-
-
-
-
Philippines
Sales
29
0
0
0
0
0
40
269
YoY
-92.7%
-
-
-
-
-
-
-
Operating profit
-36
-37
-53
-28
-27
-39
-11
122
Operating profit margin
-
-
-
-
-
-
-
45.4%
Indonesia
Sales
20
-1
45
70
111
43
125
250
YoY
-91.6%
-
-80.5%
-73.2%
455.0%
-
177.8%
257.1%
Operating profit
-56
-97
-48
-35
-15
-43
3
14
Operating profit margin
-
-
-
-
-
-
2.4%
5.6%
Vietnam
Sales
26
84
88
72
80
8
9
94
YoY
-74.3%
-30.0%
1.1%
-16.3%
207.7%
-90.5%
-89.8%
30.6%
Operating profit
-41
-7
-10
-25
-31
-52
-41
40
Operating profit margin
-
-
-
-
-
-
-
42.6%
Source: Shared Research based on company data * In Q4 FY02/22 (December 2021 – February 2022) the company altered its criteria for inclusion in the store count, adding Toys Spot Palo and Tiny Mollyfantasy.
Executive summary
Aeon Fantasy Co., Ltd. is an operator of amusement centers, most of which are located inside of shopping centers operated by the Aeon group. The company also operates indoor playgrounds. Aeon Fantasy traces its roots to the amusement business launched by Yoshinori Tsuji (its first president) in 1988 as an internal project under JUSCO Co., Ltd. (now Aeon). Its first indoor amusement park, Fantasy Park, opened in July 1988 in Odate, Akita Prefecture and served as the prototype for Mollyfantasy, the company’s mainstay amusement center brand. Aeon Fantasy was established in February 1997, taking over management of 58 facilities the following month. As of end-FY02/21, Aeon Fantasy had a total of 859 facilities, 849 of which are managed directly; the other 10 are run by franchisees. 86% of the 431 facilities in Japan are in shopping centers operated by the Aeon group; 429 are located overseas, mainly in China and ASEAN countries. The proportion of facilities located overseas is rising steadily.
In Japan, most of the company’s outlets operate under the Mollyfantasy brand and are located in shopping centers operated by the Aeon group. However, starting with the PALO format that are opened in collaboration with movie theaters, the company is gradually opening an increasing number of facilities inside non-Aeon group shopping centers, home improvement centers, department stores, and other retailers outside the group.
Overseas, the company’s operations currently include 205 facilities in China; most of the other overseas facilities are located in ASEAN countries, including 98 in Malaysia and 53 in the Philippines (as of end-FY02/21). In contrast to operations in Japan, where the vast majority of outlets operate under the Mollyfantasy name, a large proportion of overseas outlets are indoor playgrounds that operate under the Kidzooona name and are located in retail space not associated with the Aeon group.
Aeon Fantasy announced its medium-term management plan in April 2021. Under the plan, the company will promote its business with a focus on business domain expansion in preparation for the new normal and IT-driven business structure reforms. The company’s target for FY02/24 is to achieve sales of JPY85.5bn and operating profit of JPY6.0bn. This represents a 15.2% increase in sales and a 29.0% increase in operating profit compared with FY02/19 results, before the company was affected by the COVID-19 pandemic.
Trends and outlook
In FY02/22, the company reported sales of JPY60.2bn (+30.5% YoY) and operating loss of JPY3.4bn (loss of JPY7.4bn in FY02/21). Operating loss from domestic operations was JPY1.6bn (loss of JPY6.1bn in FY02/21), the China operations booked an operating loss of JPY1.2bn (JPY36mn profit in FY02/21), and ASEAN operations generated an operating loss of JPY576mn (loss of JPY1.4bn in FY02/21). All regions were impacted by COVID-19, resulting in operating losses. However, the company achieved a turnaround to black in Q4 (December 2021–February 2022).
The company forecast for FY02/23 calls for sales of JPY78.9bn (+31.1% YoY), operating profit of JPY2.6bn (loss of JPY3.4bn in FY02/22), recurring profit of JPY1.7bn (loss of JPY3.4bn in FY02/22), and net income attributable to owners of parent of JPY400mn (net loss of JPY4.5bn in FY02/22). The company sees sales returning to pre-COVID levels and expects a shift to profit at all levels in FY02/23.
Strengths and weaknesses
Shared Research believes the company’s strengths are 1) firmly established store brands in Asia, 2) ability to source distinctive amusement equipment via a large facility network, strengthening differentiation, and 3) Aeon group’s power and strong capital position facilitates early market share gain in emerging markets. Weaknesses include its 1) shortage in personnel to accelerate expansion in Asia, 2) weak character branding, and 3) labor-intensive business model (see Strengths and weaknesses section for details).
Key financial data
Recent updates
Monthly sales data for April 2022
Aeon Fantasy Co., Ltd. announced monthly sales data for April 2022.
Revision to the earnings forecast
On April 4, 2022, Aeon Fantasy Co., Ltd. announced a revision to its full-year earnings forecast.
Revision of forecast for full-year FY02/22
Reasons for the revision
Results by business in FY02/22 were as follows.
In the China business, sales recovered to pre-pandemic levels for the most part in September and October 2021, but in Q4 (December 2021–February 2022), sales fell below previous projections due to strengthened pandemic-related regulations imposed by the Chinese government amid the spread of COVID-19.
In the Domestic business, the last state of emergency was lifted at end-September 2021, and sales had been on a recovery track since then. However, due to the spread of the Omicron variant in January 2022, customer footfall fell, with sales undershooting previous expectations.
In the ASEAN business, resumption of facility operations sped up in 2H (September 2021–February 2022) as previously expected, and the business moved into the black at the operating profit level in Q4.
As a result of the above, in FY02/22 sales exceeded the previous forecast due to sales growth at overseas subsidiaries as the value of yen fell below the forex assumptions made for the previously revised forecast. Meanwhile, operating profit, recurring profit, and net income attributable to owners of parent are expected to finish the year below previous projections.
In the Domestic business, sales in December 2021 were 2.1% above the December 2019 levels (adjusted for differences in business days). Sales from online crane games were up YoY, and in the prizes division, the company offered prizes developed in collaboration with other parties and prizes only the company offered, driving 2H sales above the 2H FY02/20 levels. The Domestic business turned a profit at the operating profit level in Q4.
Trends and outlook
Quarterly trends and results
Note: Earnings estimates for FY02/22 are based on the previously revised forecast.
* In Q4 FY02/22 (December 2021 – February 2022) the company altered its criteria for inclusion in the store count, adding Toys Spot Palo and Tiny Mollyfantasy.
* In Q4 FY02/22 (December 2021 – February 2022) the company altered its criteria for inclusion in the store count, adding Toys Spot Palo and Tiny Mollyfantasy.