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Financial Results Presentation4772SM ENTERTAINMENT JAPAN Co.,Ltd.Information and Communications, Services and Others

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

In the first half of FY2026, revenue, operating profit and ordinary profit all exceeded the year-earlier period, while the operating margin improved to 3.76%. The company said it achieved its full-year target ahead of schedule, driven by a concentration on large-scale performances, expansion of peripheral businesses and progress toward a higher-margin business model.

Worth reading
67In focus
Scored from 5 of 6 sections
Direction
Improvement
Direction inferred from the company’s description.
Scale
26.8
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationSecond quarter of the fiscal year ending December 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales6,170 Millions of yen+26.8%
Operating profit232 Millions of yen+67.5%
Ordinary income271 Millions of yen+90.4%
Operating profit margin3.76 %
Results for the three months of the current quarter
Entertainment segment
Net Sales
4,895 Millions of yen
Profit
467 Millions of yen
Rights & Media segment
Net Sales
1,275 Millions of yen
Profit
4 Millions of yen
Full-year earnings forecast
Entertainment segment
Net Sales
6,801 Millions of yen
Profit
535 Millions of yen
Rights & Media segment
Net Sales
2,308 Millions of yen
Profit
175 Millions of yen
Operating profit margin
2026 target2.7 %
2027 target4.5 %
2028 target5 %
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
Profit87.29 %
Sales71.97 %
Rights & Media segment
Profit2.29 %
Sales55.24 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Full-year target achieved ahead of schedule / Progressing smoothly
New initiatives
  • Providing tour packages on behalf of third parties for the travel app CONCONTOWN
  • Expanding CONCONTOWN through customized app OEM offerings for third parties
  • Bringing production of original Japanese master recordings and A&R functions in-house
  • Concentrating performances at large venues and optimizing smaller-scale performances
  • Investing for growth in new IP and actively participating in external events and festivals
Key KPIsA metric the company considers important as a management benchmark.
  • Number of Q2 performances20 performances
    Year on year against the same period last year-23.0%
  • Q2 attendance38.7 10,000 people
    Year on year against the same period last year+29.0%
  • Average attendance2.8 times
    Year on year against the same period last yearYear-on-Year
  • Number of rights acquired in Q218 bottles
    Year on year against the same period last year+125.0%
  • YouTube views (NCT WISH)613 10,000 plays
  • TikTok followers (GPP)85 10,000 people
  • Increase in YouTube subscribers (Kiepi)10 10,000 people
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Q2 attendance38.7 10,000 people
    Year on year against the same period last year+29.0%
  • Average attendance2.8 Year-on-year multiple
    Year on year against the same period last year2.8x
  • Average customer spend in the merchandise businessExpansion
Segment results
  • Entertainment segment
    Net Sales4,895
    Revenue unitMillions of yen
    Year-on-year change in revenue33.3
    Profit467
    Profit unitMillions of yen
    Year-on-year change in profit71.2
    Operating profit margin9.54
  • Rights & Media segment
    Net Sales1,275
    Revenue unitMillions of yen
    Year-on-year change in revenue6.8
    Profit4
    Profit unitMillions of yen
    Year-on-year change in profit-96.5
    Operating profit margin0.31
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
Financial targets
  • Operating Margin
    2026 target2.7
    2027 target4.5
    2028 target5
  • Operating Margin
    First-half results3.76
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales6,170 Millions of yen (YoY +26.8%)
Operating profit232 Millions of yen (YoY +67.5%)
Ordinary income271 Millions of yen (YoY +90.4%)
Operating profit margin3.76 %
Results for the three months of the current quarterEntertainment segment Net Sales 4,895 Millions of yen / Profit 467 Millions of yen / Rights & Media segment Net Sales 1,275 Millions of yen / Profit 4 Millions of yen
Full-year earnings forecastEntertainment segment Net Sales 6,801 Millions of yen / Profit 535 Millions of yen / Rights & Media segment Net Sales 2,308 Millions of yen / Profit 175 Millions of yen / Operating profit margin 2026 target 2.7 % / 2027 target 4.5 % / 2028 target 5 %
Progress against full-year forecastEntertainment segment Profit 87.29 % / Sales 71.97 % / Rights & Media segment Profit 2.29 % / Sales 55.24 %
Self-assessment against the planFull-year target achieved ahead of schedule / Progressing smoothly
Segment resultsSegment Entertainment segment / Net Sales 4,895 / Revenue unit Millions of yen / Year-on-year change in revenue 33.3 / Profit 467 / Profit unit Millions of yen / Year-on-year change in profit 71.2 / Operating profit margin 9.54, Segment Rights & Media segment / Net Sales 1,275 / Revenue unit Millions of yen / Year-on-year change in revenue 6.8 / Profit 4 / Profit unit Millions of yen / Year-on-year change in profit -96.5 / Operating profit margin 0.31
Key KPIsIndicator name Number of Q2 performances / Value 20 performances / Year on year against the same period last year -23 performances, Indicator name Q2 attendance / Value 38.7 10,000 people / Year on year against the same period last year 29 10,000 people, Indicator name Average attendance / Value 2.8 times / Year on year against the same period last year Year-on-Year, Indicator name Number of rights acquired in Q2 / Value 18 bottles / Year on year against the same period last year 125 bottles, Indicator name YouTube views (NCT WISH) / Value 613 10,000 plays / Year on year against the same period last year Not disclosed, Indicator name TikTok followers (GPP) / Value 85 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Increase in YouTube subscribers (Kiepi) / Value 10 10,000 people / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Q2 attendance / Value 38.7 10,000 people / Year on year against the same period last year 29 10,000 people, Indicator name Average attendance / Value 2.8 Year-on-year multiple / Year on year against the same period last year 2.8x, Indicator name Average customer spend in the merchandise business / Value Expansion / 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
Financial targetsIndicator Operating Margin / 2026 target 2.7 % / 2027 target 4.5 % / 2028 target 5 %, Indicator Operating Margin / First-half results 3.76 %
New initiativesProviding tour packages on behalf of third parties for the travel app CONCONTOWN, Expanding CONCONTOWN through customized app OEM offerings for third parties, Bringing production of original Japanese master recordings and A&R functions in-house, Concentrating performances at large venues and optimizing smaller-scale performances, Investing for growth in new IP and actively participating in external events and festivals
Items this document does not state (15)
Net incomeGross Profit MarginSelling, general and administrative expensesBreakdown of Factors Affecting the ChangeNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual 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.

The company cited a lower fixed-cost ratio resulting from concentrating performances at large venues; growth in peripheral entertainment revenue from events, e-commerce, merchandise and live broadcasting rights; an increase in advertising and appearance contracts as IP value improved; and the rollout of the travel app “CONCONTOWN” for third-party IP.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | SM ENTERTAINMENT JAPAN Co.,Ltd. (4772) timely disclosure | Komori