Toy company profits down $35 million in '07
TOKYO — Toymaker and visual content producer Happinet has forecast an extraordinary loss of ¥3.8 billion ($35 million) for the 2007 fiscal year, ending in March.
Most of the damage comes from bad investments in the visual content biz, which racked up $24.8 million in losses.
The company’s projection for consolidated net profit has shifted from $15.7 million to a $13.9 million loss.
The $1.53 billion forecast for total sales in fiscal 2007 remains unchanged, but the projection for operating profit has dropped from $21.3 million to $14.8 million.
A member of the Bandai Namco Group, Happinet makes most of its visual content coin from package media, including DVDs of foreign and Japanese pics, TV shows, toons and music concerts and shows. It has recently upped investments in toons, some of which have not panned out.
To reverse its fortunes, the company is restructuring its visual media biz, cutting the number of staffers in its visual production division from 47 to 38 and is setting up a team to monitor project investments and product sales.