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Presentation materials for financial results4772SM ENTERTAINMENT JAPAN Co.,Ltd.Information and Communications, Services and Others

Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 2026

In the first quarter of the fiscal year ending December 2026, revenue and profit increased significantly as the company concentrated large-scale performances in the quarter and coordinated related businesses, including merchandise sales and streaming. The operating margin rose to 7.3%, exceeding the target for the first year of the medium-term management plan.

Worth reading
57In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
235
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending December 20265 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,204 million+47.0%
Operating profit¥235 million+452.6%
Ordinary income¥268 million+463.3%
Operating profit margin7.3%
Results for the three months of the current quarter
Net Sales¥3,204 million
Operating profitFirst-quarter operating income: ¥235 million
Ordinary income¥268 million
Operating profit margin7.3%
Full-year earnings forecast
Entertainment segment
Net Sales
¥6,801 million
Profit
¥535 million
Rights & Media segment
Net Sales
¥2,308 million
Profit
¥175 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Entertainment segment
Profit57.8%
Sales38.5%
Rights & Media segment
Profit29.1%
Sales25.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
A strong start, substantially ahead of plan
New initiatives
  • Debut of GPP, the first girl group under the company’s own IP
  • Debut of the virtual artist Kiepi
  • Bringing A&R and marketing functions in-house
  • Launch of NCT YUTA’s official YouTube channel, “YuTube”
  • Beginning external sales of the company’s own app, “CONCONTOWN,” for third-party IP
  • Launch of a centralized IP management framework
  • Taking the lead in-house in the production process for music using Japanese master recordings
Key KPIsA metric the company considers important as a management benchmark.
  • Number of shows in 1Q21 performances
    Year on year against the same period last yeardown 4 shows
  • 1Q attendance34.6 10,000 people
    Year on year against the same period last yearup 4.6万人
  • Dome performance attendance24.8 10,000 people
  • Licenses purchased in 1Q4 bottles
    Year on year against the same period last yeardown from 6 licenses in the same period of the previous year
  • Number of premium content broadcasts9 Works
  • GPP music video views165 10,000 plays
  • GPP YouTube channel subscribers9.6 10,000 people
Segment results
  • Entertainment segment
    Net Sales¥2,616 million (YoY +61.2%)
    Profit¥309 million (YoY +136.7%)
    Operating profit margin11.81%
  • Rights & Media segment
    Net Sales¥588 million (YoY +5.7%)
    Profit¥51 million (YoY -13.8%)
    Operating profit margin8.67%
Medium-term management plan targets
  • Target fiscal year2,026
    TargetOperating margin of 2.7%
  • Target fiscal year2,027
    TargetOperating margin of 4.5%
  • Target fiscal year2,028
    TargetOperating margin of 5.0% or higher
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥3,204 million (YoY +47.0%)
Operating profit¥235 million (YoY +452.6%)
Ordinary income¥268 million (YoY +463.3%)
Operating profit margin7.3%
Results for the three months of the current quarterNet Sales ¥3,204 million / Operating profit First-quarter operating income: ¥235 million / Ordinary income ¥268 million / Operating profit margin 7.3%
Full-year earnings forecastEntertainment segment Net Sales ¥6,801 million / Profit ¥535 million / Rights & Media segment Net Sales ¥2,308 million / Profit ¥175 million
Progress against full-year forecastEntertainment segment Profit 57.8% / Sales 38.5% / Rights & Media segment Profit 29.1% / Sales 25.5%
Self-assessment against the planA strong start, substantially ahead of plan
Segment resultsSegment Entertainment segment / Net Sales ¥2,616 million (YoY +61.2%) / Profit ¥309 million (YoY +136.7%) / Operating profit margin 11.81%, Segment Rights & Media segment / Net Sales ¥588 million (YoY +5.7%) / Profit ¥51 million (YoY -13.8%) / Operating profit margin 8.67%
Key KPIsIndicator name Number of shows in 1Q / Value 21 performances / Year on year against the same period last year down 4 shows, Indicator name 1Q attendance / Value 34.6 10,000 people / Year on year against the same period last year up 4.6万人, Indicator name Dome performance attendance / Value 24.8 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Licenses purchased in 1Q / Value 4 bottles / Year on year against the same period last year down from 6 licenses in the same period of the previous year, Indicator name Number of premium content broadcasts / Value 9 Works / Year on year against the same period last year Not disclosed, Indicator name GPP music video views / Value 165 10,000 plays / Year on year against the same period last year Not disclosed, Indicator name GPP YouTube channel subscribers / Value 9.6 10,000 people / Year on year against the same period last year Not disclosed
Medium-term management plan targetsTarget fiscal year 2,026 / Target Operating margin of 2.7%, Target fiscal year 2,027 / Target Operating margin of 4.5%, Target fiscal year 2,028 / Target Operating margin of 5.0% or higher
New initiativesDebut of GPP, the first girl group under the company’s own IP, Debut of the virtual artist Kiepi, Bringing A&R and marketing functions in-house, Launch of NCT YUTA’s official YouTube channel, “YuTube”, Beginning external sales of the company’s own app, “CONCONTOWN,” for third-party IP, Launch of a centralized IP management framework, Taking the lead in-house in the production process for music using Japanese master recordings
Items this document does not state (17)
Net incomeGross Profit MarginSelling, general and administrative expensesBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Large-scale performances, including “SMTOWN LIVE 2025-26 in FUKUOKA,” were concentrated in the first quarter. In addition to improving venue setup and operating efficiency by shifting to dome performances, the company added related revenue through merchandise sales and exclusive streaming on Lemino.

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Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending December 2026 | SM ENTERTAINMENT JAPAN Co.,Ltd. (4772) timely disclosure | Komori