Banpresto upgrades profit forecast

Today Bandai Namco subsidiary Banpresto released an improved earnings forecast for the past 12 months. For Japan's 2005 financial year, which runs from April 2005 to March 2006, the company now expects 2.1 billion yen ($18.3 million) in net income, up 27.3 percent from its initial forecast of 1.65 billion yen ($14.4 million).

Banpresto also predicts revenue and operating profits will beat initial expectations, but only slightly. In its updated forecast, operating profit is up 3 percent to 3.1 billion yen ($26.9 million), while revenue edges up by less than one percent to 37.7 billion yen ($328.7 million).

In a statement, the company noted that while its restated revenue and operating profits are extremely close to its initial forecasts, unplanned sales of fixed assets and revisions in Japan's tax code drove earnings above expectations. Apparently, a change in allowable deductions for R&D spending saved the company a bundle in income taxes.

In addition to its line of console games, which include licensed titles based on hot Japanese properties like Ultraman and Crayon Shin-chan, Banpresto also earns revenue from a variety of other sources, including selling arcade equipment and running amusement centers.