Improving the Profitability of the Video and Music Business through New Sales Channels and Company-Led Works

「Although the company expanded its video package production and distribution business, this was insufficient to offset the market contraction, and revenue fell below the previous fiscal year. Profit also substantially fell below the previous fiscal year due to investment losses on foreign films acquired by the company.」

「In the video and music business, revenue exceeded the same period of the previous year due to increased sales from the expansion of the video package production and distribution business, as well as hit products such as Mrs. GREEN APPLE's album "10" in the distribution business. Profit substantially fell below the same period of the previous year due to investment losses on foreign films acquired by the company.」

「Profit substantially exceeded the previous fiscal year due to improved profit in the video production division and contributions from video package products for which the company holds licensing rights.」

「In the video and music business, sales of video and music packages remained sluggish and revenue fell below the same period of the previous year. However, box-office revenue from video works in which the company invested remained strong, while overseas sales and sales to streaming platforms also grew, improving profitability in the video manufacturer division and resulting in a substantial increase in profit year on year.」

「In the intermediate distribution division, hit products such as Snow Man 1st DOME tour 2023 i DO ME were offset by weak sales in the manufacturing division, leaving sales flat from the same period of the previous fiscal year. Profit substantially exceeded the same period of the previous fiscal year due to controls on valuation losses on slow-moving inventory and strong sales of relatively high-margin, internally planned merchandise.」

「In the Visual and Music Business, sales and profit exceeded the same period of the previous fiscal year because strong sales of new music packages and sales of video works in which the Company had invested to streaming platforms in the first quarter outweighed the lack of major hit titles in the second quarter and investment losses incurred on some of the Company's invested video works.」

「Sales exceeded the same period of the previous fiscal year as sales of new music packages, led by King & Prince's best album Mr.5 and Snow Man's album i DO ME, performed well, and sales of video works in which the Company had invested to streaming platforms increased. Profit also substantially exceeded the same period of the previous fiscal year due to lower inventory valuation losses resulting from efforts to maintain appropriate inventory levels. As a result, sales were ¥17,710 million, up 7.3% year on year, and segment profit was ¥280 million, up 170.7%.」

「In the Visual and Music Business, sales of new video packages recovered due to hit products such as King & Prince First DOME TOUR 2022 ~Mr.~, but sales of music packages struggled and sales were flat from the previous fiscal year. Profit fell substantially below the previous fiscal year due to valuation losses on slow-moving inventory and content investment losses on video works in which the Company had invested.」

「In the Visual and Music Business, sales fell below the same period of the previous fiscal year because there were no major hit products and sales of video packages in particular struggled. Profit also fell substantially below the same period of the previous fiscal year due to valuation losses on slow-moving inventory and content investment losses on video works in which the Company had invested. As a result, sales were ¥49,547 million, down 4.6% year on year, and segment profit was ¥124 million, down 79.1%.」

「In the Visual and Music Business, sales and profit both fell below the same period of the previous fiscal year because the Company had no major hit products compared with the same period of the previous fiscal year, and investment losses on content arose due to valuation losses on slow-moving inventory and weak box-office performance of video works in which the Company had invested. As a result, sales were ¥33,299 million, down 2.6% year on year, and segment profit was ¥190 million, down 61.4%.」

「In the Visual and Music Business, sales exceeded the same period of the previous fiscal year as sales of new video and music packages, including Snow Man LIVE TOUR 2021 Mania, performed well, and overseas sales of animation works in which the Company had invested increased in the video production division.」

「As the market environment changes with the spread of streaming services, the Company will seek to expand its manufacturing operations in the Visual and Music Business. In the video division, it will expand its distribution, streaming and animation businesses, while in the music division it will seek to establish a music manufacturing business. The Company will also pursue opportunities in experiential businesses such as live events and stage productions.」

「In the Visual and Music Business, sales exceeded the same period of the previous fiscal year due to recovery from the impact of COVID-19 in the same period of the previous fiscal year and strong performance of packages for works distributed exclusively by the Company, including the anime UmaYon Blu-ray BOX. Profit fell below the same period of the previous fiscal year due to investment losses on video works in which the Company had invested. As a result, sales were ¥51,951 million, up 5.7% year on year, and segment profit was ¥597 million, down 1.0%.」

「In the Visual and Music Business, sales exceeded the same period of the previous fiscal year due to recovery from the postponement of new releases in the same period of the previous fiscal year amid the COVID-19 pandemic, as well as some hit products such as Blu-ray products for the anime Uma Musume Pretty Derby Season 2. Profit was flat year on year because investment losses on video works in which the Company had invested arose as their box-office performance remained weak under the state of emergency.」

「In the visual and music business, the packaged market was on a recovery trend from the same period of the previous year, when it was affected by postponed new releases. In addition, some hit products, including the packaged version of the film Demon Slayer: Kimetsu no Yaiba the Movie: Mugen Train, resulted in both revenue and profit exceeding the level of the same period of the previous year.」

「In the Visual and Music Business, sales of older video-package titles and sales of content to streaming services performed well on stay-at-home demand, but sales fell below the previous fiscal year because new releases were postponed amid the COVID-19 pandemic. Profit also fell below the previous fiscal year despite efforts to control selling, general and administrative expenses, as investment losses on video content arose due to weak box-office performance of video works in which the Company had invested, amid theater closures and seating restrictions. As a result, sales were ¥67,529 million, down 5.7% from the previous fiscal year, and segment profit was ¥519 million, down 2.5%.」

「In the Visual and Music Business, conditions were recovering from the market downturn caused by event cancellations and postponed new releases. Although sales of Arashi's album This is 嵐 and older video-package titles benefited from stay-at-home demand and performed well, this was insufficient to cover the decline through the first quarter, and sales remained below the same period of the previous fiscal year. Profit exceeded the same period of the previous fiscal year due to controls on selling, general and administrative expenses. As a result, sales were ¥49,153 million, down 8.5% year on year, and segment profit was ¥603 million, up 3.8%.」

「In the Visual and Music Business, the Company benefited from some hit products, including Kenshi Yonezu's album STRAY SHEEP and packages for the anime Princess Connect! Re:Dive, for which the Company had exclusive distribution rights. However, this was insufficient to cover the decline through the first quarter caused by the accelerated spread of streaming services as people refrained from going out and the postponement of new releases. Sales and profit remained weak. As a result, sales were ¥30,611 million, down 12.3% year on year, and segment profit was ¥495 million, down 11.3%.」

「In the Visual and Music Business, sales and profit both fell below the same period of the previous fiscal year. Although there were some hit products, including packages for the film Frozen II, the spread of streaming services accelerated as people refrained from going out, the overall packaged-media market remained challenging, and new-release launches were postponed and events canceled. As a result, sales were ¥13,368 million, down 25.0% year on year, and segment profit was ¥198 million, down 28.5%.」

「There were no material changes during the nine-month period to the issues that the Group needs to address.」

「There have been no material changes to the issues to be addressed by our Group during the six-month period ended 30 September.」

「In the Visual and Music Business, sales and profit both fell below the same period of the previous fiscal year. Although Arashi's best album 5×20 All the BEST!! 1999-2019 and the anime Manaria Friends, in which the Company invested, performed well, the overall packaged-media market remained challenging.」

「As a result, sales were ¥81,762 million, up 92.5% from the previous fiscal year, and segment profit was ¥1,096 million, up 24.3%.」

「In the Visual and Music Business, the Company succeeded to the wholesale business for music and video packages of 株式会社星光堂 and expanded its share of the intermediate distribution market. In addition, hit products such as Namie Amuro's namie amuro Final Tour 2018 ~Finally~ and improvements in subsidiary operations contributed to sales and profit both substantially exceeding the same period of the previous fiscal year. As a result, sales were ¥63,567 million, up 125.8% year on year, and segment profit was ¥1,107 million, up 129.4%.」

「In the video and music business, net sales and profit significantly exceeded the same period of the previous year, owing to the strong performance of Namie Amuro’s “namie amuro Final Tour 2018 ～Finally～” and improvements in the operations of the subsidiary that assumed Seikodo Co., Ltd.’s wholesale business for packaged music and video products. As a result, net sales were ¥42,896 million, up 126.6% year on year, and segment profit was ¥759 million, up 143.8%.」

「There were no significant changes in the issues that our group must address during the cumulative first quarter of the fiscal year.」

「Despite the contraction of the packaged-media market, sales and profit in the Visual and Music Business exceeded the same period of the previous fiscal year, supported by strong performance of packages including Namie Amuro's best CD album Finally, for which she announced her retirement in September 2018, the film Your Name. and the Company's film KISEKI: Sobito of That Day.」

「In the Visual and Music Business, packaged products for the film Your Name. and the Company-led production KISEKI: Sobito of That Day performed well, resulting in sales and profit exceeding the same period of the previous fiscal year.」

「Sales and profit in the Visual and Music Business exceeded the same period of the previous fiscal year, supported by the success of Company-led productions.」

「The Company will seek to expand its market share by strengthening sales activities and developing new sales channels. It will also focus on producing Company-led productions centered on anime and Japanese films, and aim to enhance earnings power by establishing a business model encompassing packaging and distribution.」