Worth reading
79Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
281
¥ million (operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationQ3 FY20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥8,736 million+17.1%
Operating profit¥281 million+24.9%
Ordinary income¥325 million+37.5%
Operating profit margin3.22 %
Full-year earnings forecastConsolidated line-item forecast amounts: Not disclosed. Segment targets are revenue of ¥6,801 million and profit of ¥535 million for the Entertainment business, and revenue of ¥2,308 million and profit of ¥175 million for the Rights & Media business. The full-year operating margin target for FY2026 is 2.7%.
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。
Consolidated
Net Sales96.1%
Operating profit113.8%
Ordinary income126.5%
Operating profit margin118.4%
Entertainment Business
Net Sales102.2%
Profit111.2%
Rights & Media Business
Net Sales77.21%
Profit24.00%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Strong business progress, with the full-year profit target achieved ahead of schedule and progress extremely solidBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Quantitative bridge of changes: Not disclosed. Key factors were large-scale performances, merchandise sales, new-fan acquisition, royalty income, content renewal costs, higher production and procurement costs, and yen depreciation.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company identifies sharp exchange-rate fluctuations, global inflation, rising production costs, content procurement costs, yen depreciation against the KRW, USD and other currencies, and increases in labor, operating and transportation costs as risk factors. Specific assumed rates and prices are Not disclosed.New initiatives
- Growth investment in the company's own IP and emerging artists, and stronger social media marketing
- Production of original master recordings for the Japanese market and cost-effective promotion
- Travel packages with direct buses to venues and limited-edition benefits
- Diversification of content procurement risk through a joint-business model
- Special live event at Universal Studios Japan
- Regular broadcasts of SBS Inkigayo
- Bringing label functions in-house and advancing a vertically integrated model
Key KPIsA metric the company considers important as a management benchmark.
- Operating margin3.22 %Year on year against the same period last year+132.1%
- Number of performances in 3Q28 performancesYear on year against the same period last year-18.0%
- 3Q attendance15.8 10,000 peopleYear on year against the same period last year-28.2%
- Ticket sales rateIn line with plan
- Number of rights purchases in the third quarter13 bottlesYear on year against the same period last year7 in the prior year, +6
- Number of premium content broadcasts5 Product
- Kiepi YouTube subscribers12.7 10,000 people
- Views of Kiepi's debut-song music video46 Over 10,000 views
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The company describes improving average customer spend as a measure in the travel business, but actual average spend and volume figures are Not disclosed.Segment results
- Entertainment BusinessNet Sales¥6,954 million (YoY +23.9%)Profit¥595 million (YoY +48.0%)Operating profit margin8.56%
- Rights & Media BusinessNet Sales¥1,782 million (YoY -3.7%)Profit¥42 million (YoY -79.4%)Operating profit margin2.4%
Medium-term management plan targets
- Fiscal year2,026TargetOperating margin of 2.7%
- Fiscal year2,027TargetOperating margin of 4.5%
- Fiscal year2,028TargetOperating margin of 5.0% or higher
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Q3 FY2026 |
| Net Sales | ¥8,736 million (YoY +17.1%) |
| Operating profit | ¥281 million (YoY +24.9%) |
| Ordinary income | ¥325 million (YoY +37.5%) |
| Operating profit margin | 3.22 % |
| Full-year earnings forecast | Consolidated line-item forecast amounts: Not disclosed. Segment targets are revenue of ¥6,801 million and profit of ¥535 million for the Entertainment business, and revenue of ¥2,308 million and profit of ¥175 million for the Rights & Media business. The full-year operating margin target for FY2026 is 2.7%. |
| Progress against full-year forecast | Consolidated Net Sales 96.1% / Operating profit 113.8% / Ordinary income 126.5% / Operating profit margin 118.4% / Entertainment Business Net Sales 102.2% / Profit 111.2% / Rights & Media Business Net Sales 77.21% / Profit 24.00% |
| Self-assessment against the plan | Strong business progress, with the full-year profit target achieved ahead of schedule and progress extremely solid |
| Segment results | Segment Entertainment Business / Net Sales ¥6,954 million (YoY +23.9%) / Profit ¥595 million (YoY +48.0%) / Operating profit margin 8.56%, Segment Rights & Media Business / Net Sales ¥1,782 million (YoY -3.7%) / Profit ¥42 million (YoY -79.4%) / Operating profit margin 2.4% |
| Breakdown of Factors Affecting the Change | Quantitative bridge of changes: Not disclosed. Key factors were large-scale performances, merchandise sales, new-fan acquisition, royalty income, content renewal costs, higher production and procurement costs, and yen depreciation. |
| Key KPIs | Indicator name Operating margin / Value 3.22 % / Year on year against the same period last year 132.1 %, Indicator name Number of performances in 3Q / Value 28 performances / Year on year against the same period last year -18 performances, Indicator name 3Q attendance / Value 15.8 10,000 people / Year on year against the same period last year -28.2 10,000 people, Indicator name Ticket sales rate / Value In line with plan / Year on year against the same period last year Not disclosed, Indicator name Number of rights purchases in the third quarter / Value 13 bottles / Year on year against the same period last year 7 in the prior year, +6, Indicator name Number of premium content broadcasts / Value 5 Product / Year on year against the same period last year Not disclosed, Indicator name Kiepi YouTube subscribers / Value 12.7 10,000 people / Year on year against the same period last year Not disclosed, Indicator name Views of Kiepi's debut-song music video / Value 46 Over 10,000 views / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | The company describes improving average customer spend as a measure in the travel business, but actual average spend and volume figures are Not disclosed. |
| Assumptions Underlying the Business Outlook | The company identifies sharp exchange-rate fluctuations, global inflation, rising production costs, content procurement costs, yen depreciation against the KRW, USD and other currencies, and increases in labor, operating and transportation costs as risk factors. Specific assumed rates and prices are Not disclosed. |
| Medium-term management plan targets | Fiscal year 2,026 / Target Operating margin of 2.7%, Fiscal year 2,027 / Target Operating margin of 4.5%, Fiscal year 2,028 / Target Operating margin of 5.0% or higher |
| New initiatives | Growth investment in the company's own IP and emerging artists, and stronger social media marketing, Production of original master recordings for the Japanese market and cost-effective promotion, Travel packages with direct buses to venues and limited-edition benefits, Diversification of content procurement risk through a joint-business model, Special live event at Universal Studios Japan, Regular broadcasts of SBS Inkigayo, Bringing label functions in-house and advancing a vertically integrated model |
Items this document does not state (15)
Net incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterNumber of stores and locationsNumber of employeesRisk 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.Strong momentum from the first half, when performances at large venues were concentrated, merchandise sales from POP-UP events linked to new-song releases, and growth in new fans and royalty income following the hit of a new song drove results. In the Rights & Media business, transitional costs associated with renewing the content portfolio, globally rising production costs and higher procurement costs due to yen depreciation weighed on profit.
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.