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Financial results presentation4839WOWOW INC.Information and Communications, Services and Others

FY2025 Earnings Presentation Materials

In fiscal 2025, revenue increased slightly as higher business revenue more than offset the decline in membership revenue. Operating profit and ordinary profit declined because the decrease in membership revenue could not be fully offset. Net income increased, however, as there were no impairment losses associated with the termination of the 4K service, which had been recognized in the previous fiscal year.

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Contents of this document

Financial results presentationFY2025 financial results10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥77,124 million+100.5%
Operating profit¥1,475 million+72.4%
Ordinary income¥2,276 million+75.9%
Net income¥1,296 million+203.3%
Operating profit margin
Rate1.9
Year-on-year change (points)Down 0.8 percentage points, from 2.7% in fiscal 2024 to 1.9% in fiscal 2025
Full-year earnings forecast
Net Sales
¥74,500 million
Operating profit
¥750 million
Ordinary income
¥1,000 million
Profit attributable to owners of the parent
¥600 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Decrease in PF monthly fees+¥589 million
Decrease in advertising expenses+¥466 million
Decrease in technology expenses+¥436 million
Lower depreciation expense+¥415 million
Decrease in program costs+¥347 million
Group company earnings+¥313 million
Decrease in membership revenue-¥3,593 million
Other-¥43 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Assumed Exchange Rates160 Yen/Dollar
  • Program costs as a percentage of non-consolidated net sales40.5 %
New initiatives
  • Launch of a new streaming service and establishment of a digital platform
  • Generation of business revenue through content diversification
  • Cost Structural Reform
  • Productivity Improvement Through AI and DX
  • Expansion of sales outside the Group
  • Launch of the ALIUS project with Rakuten
  • Exclusive live broadcasting and live streaming of all UEFA Champions League matches through the 2030–31 season
  • Launch of UEFA Women's Champions League broadcasting and streaming
Key KPIsA metric the company considers important as a management benchmark.
  • New subscriptions571 thousand cases
    Year on year against the same period last year+81.1%
  • Number of cancellations764 thousand cases
    Year on year against the same period last year+94.1%
  • Net additions-193 thousand cases
    Year on year against the same period last year-107 thousand subscriptions from the previous fiscal year
  • Cumulative net additions2,167 thousand cases
    Year on year against the same period last year+91.8%
  • Multiple contracts288 thousand cases
    Year on year against the same period last year+91.2%
  • Accommodation facility contracts91 thousand cases
    Year on year against the same period last year+102.1%
Segment results
Media and Content
Net Sales
¥70,111 million+99.5%
Operating profit
¥1,382 million+61.1%
Telemarketing
Net Sales
¥10,443 million+105.2%
Operating profit
¥91 million
Medium-term management plan targets
Restatement of the vision and business areas under the Medium-Term Management Plan (fiscal 2025–fiscal 2029). Numerical targets: not disclosed
Financial targets
ROE
Actual results1.9 %
Cost of shareholders’ equity
6 Approximately %
PBR
Actual results0.5 times
Capital expenditures
¥2,400 million
Annual Dividend
FY2025
Annual¥30 per share
BreakdownYear-end dividend: ¥30
Fiscal 2026 Plan
Annual¥30 per share
Payout ratio
FY202565.5 %
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY2025 financial results
Net Sales¥77,124 million (YoY +100.5%)
Operating profit¥1,475 million (YoY +72.4%)
Ordinary income¥2,276 million (YoY +75.9%)
Net income¥1,296 million (YoY +203.3%)
Operating profit marginRate 1.9 / Year-on-year change (points) Down 0.8 percentage points, from 2.7% in fiscal 2024 to 1.9% in fiscal 2025
Full-year earnings forecastNet Sales ¥74,500 million / Operating profit ¥750 million / Ordinary income ¥1,000 million / Profit attributable to owners of the parent ¥600 million
Segment resultsMedia and Content Net Sales ¥70,111 million (YoY +99.5%) / Operating profit ¥1,382 million (YoY +61.1%) / Telemarketing Net Sales ¥10,443 million (YoY +105.2%) / Operating profit ¥91 million
Breakdown of Factors Affecting the ChangeDecrease in PF monthly fees +¥589 million / Decrease in advertising expenses +¥466 million / Decrease in technology expenses +¥436 million / Lower depreciation expense +¥415 million / Decrease in program costs +¥347 million / Group company earnings +¥313 million / Decrease in membership revenue -¥3,593 million / Other -¥43 million
Key KPIsIndicator name New subscriptions / Value 571 thousand cases / Year on year against the same period last year 81.1 thousand cases, Indicator name Number of cancellations / Value 764 thousand cases / Year on year against the same period last year 94.1 thousand cases, Indicator name Net additions / Value -193 thousand cases / Year on year against the same period last year -107 thousand subscriptions from the previous fiscal year, Indicator name Cumulative net additions / Value 2,167 thousand cases / Year on year against the same period last year 91.8 thousand cases, Indicator name Multiple contracts / Value 288 thousand cases / Year on year against the same period last year 91.2 thousand cases, Indicator name Accommodation facility contracts / Value 91 thousand cases / Year on year against the same period last year 102.1 thousand cases
Assumptions Underlying the Business OutlookItem Assumed Exchange Rates / Value 160 Yen/Dollar, Item Program costs as a percentage of non-consolidated net sales / Value 40.5 %
Medium-term management plan targetsRestatement of the vision and business areas under the Medium-Term Management Plan (fiscal 2025–fiscal 2029). Numerical targets: not disclosed
Financial targetsROE Actual results 1.9 % / Cost of shareholders’ equity Value 6 Approximately % / PBR Actual results 0.5 times
Annual DividendFY2025 Annual ¥30 per share / Breakdown Year-end dividend: ¥30 / Fiscal 2026 Plan Annual ¥30 per share
Payout ratioFY2025 65.5 %
Capital expenditures¥2,400 million
New initiativesLaunch of a new streaming service and establishment of a digital platform, Generation of business revenue through content diversification, Cost Structural Reform, Productivity Improvement Through AI and DX, Expansion of sales outside the Group, Launch of the ALIUS project with Rakuten, Exclusive live broadcasting and live streaming of all UEFA Champions League matches through the 2030–31 season, Launch of UEFA Women's Champions League broadcasting and streaming
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesOrders 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.

Revenue increased as business revenue rose, despite a ¥3,593 million decline in membership revenue. Ordinary profit declined because the decrease in membership revenue could not be fully offset, although lower PF monthly fees, advertising expenses, technology expenses, depreciation and amortization, and program costs limited the decline. Net income increased due to the absence of impairment losses and other charges associated with the termination of the 4K channel broadcasting service in the previous fiscal year.

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FY2025 Earnings Presentation Materials | WOWOW INC. (4839) timely disclosure | Komori