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Financial results presentation7860Avex Inc.Information and Communications, Services and Others

First-Quarter Results Presentation for the Fiscal Year Ending March 2027

Revenue increased in the first quarter on strong performance from the anime and visual content business, while operating profit and net income declined due to lower revenue from stadium concerts and packaged works in the music business. The company said results exceeded expectations and are progressing steadily against its full-year forecast.

Worth reading
57In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
2194
¥ million (year-on-year increase in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 20276 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥34,930 million+6.7%
Operating profit¥1,277 million-12.4%
Ordinary income¥1,372 million-4.7%
Net income¥425 million-44.2%
Gross Profit Margin28.7 %
Operating profit margin3.7 %
Selling, general and administrative expenses¥8,745 million
Results for the three months of the current quarter
Net Sales
¥34,930 million
Operating profit
¥1,277 million
Ordinary income
¥1,372 million
Profit attributable to owners of parent for the quarter
¥425 million
Full-year earnings forecast
Operating profit
¥6,000 million
Net income
¥3,200 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Results exceeded expectations and are progressing steadily against the full-year forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in revenue from the anime and visual content business¥4,577 million
  • Decrease in revenue from the music business¥-2,182 million
  • Decrease in operating profit from the music business¥-1,201 million
  • Increase in operating profit from the anime and visual content business¥1,128 million
  • Increase in extraordinary losses¥186 million
New initiatives
  • Launch of a global music catalog acquisition project totaling approximately $100 million
    DetailsAcquire Infamous's music catalog as the first phase
  • Production of Season 2 of the TV anime Witch Hat Atelier
    DetailsProduction of Season 2 has been approved
Key KPIsA metric the company considers important as a management benchmark.
  • Total number of performances318 performances
    Year on year against the same period last year+3.0%
  • Number of stadium performances6 performances
    Year on year against the same period last year-4.0%
  • Number of arena performances57 performances
    Year on year against the same period last year+28.0%
  • Number of hall/live house performances255 performances
    Year on year against the same period last year-21.0%
  • Attendance91 10,000 people
    Year on year against the same period last year+7.0%
  • Average ticket price¥12,227
    Year on year against the same period last year-1,323.0%
  • Box office revenue from the anime and visual content business¥28.1 100 million
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Average ticket price¥12,227
    Year on year against the same period last year-1,323.0%
  • Attendance91 10,000 people
    Year on year against the same period last year+7.0%
  • Average album price¥2,305
    Year on year against the same period last year+398.0%
  • Albums sold385 thousand prescriptions
    Year on year against the same period last year-172.0%
  • Average single price¥1,229
    Year on year against the same period last year-178.0%
  • Singles sold1,698 thousand prescriptions
    Year on year against the same period last year+1,166.0%
  • Average DVD/Blu-ray price¥7,494
    Year on year against the same period last year+2,458.0%
  • DVDs/Blu-rays sold49 thousand prescriptions
    Year on year against the same period last year-740.0%
Segment results
  • Music business
    Net Sales¥25,693 million (YoY -7.8%)
    Operating profit¥345 million (YoY -77.6%)
  • Anime and visual content business
    Net Sales¥8,882 million (YoY +106.3%)
    Operating profit¥1,187 million
  • Other Businesses
    Net Sales¥802 million (YoY -10.3%)
    Operating profit¥-253 million
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥34,930 million (YoY +6.7%)
Operating profit¥1,277 million (YoY -12.4%)
Ordinary income¥1,372 million (YoY -4.7%)
Net income¥425 million (YoY -44.2%)
Gross Profit Margin28.7 %
Operating profit margin3.7 %
Selling, general and administrative expenses¥8,745 million
Results for the three months of the current quarterNet Sales ¥34,930 million / Operating profit ¥1,277 million / Ordinary income ¥1,372 million / Profit attributable to owners of parent for the quarter ¥425 million
Full-year earnings forecastNet Sales Not disclosed / Operating profit ¥6,000 million / Ordinary income Not disclosed / Net income ¥3,200 million
Self-assessment against the planResults exceeded expectations and are progressing steadily against the full-year forecast
Segment resultsSegment Music business / Net Sales ¥25,693 million (YoY -7.8%) / Operating profit ¥345 million (YoY -77.6%), Segment Anime and visual content business / Net Sales ¥8,882 million (YoY +106.3%) / Operating profit ¥1,187 million, Segment Other Businesses / Net Sales ¥802 million (YoY -10.3%) / Operating profit ¥-253 million
Breakdown of Factors Affecting the ChangeFactors Increase in revenue from the anime and visual content business / Amount ¥4,577 million, Factors Decrease in revenue from the music business / Amount ¥-2,182 million, Factors Decrease in operating profit from the music business / Amount ¥-1,201 million, Factors Increase in operating profit from the anime and visual content business / Amount ¥1,128 million, Factors Increase in extraordinary losses / Amount ¥186 million
Key KPIsIndicator name Total number of performances / Value 318 performances / Year on year against the same period last year 3 performances, Indicator name Number of stadium performances / Value 6 performances / Year on year against the same period last year -4 performances, Indicator name Number of arena performances / Value 57 performances / Year on year against the same period last year 28 performances, Indicator name Number of hall/live house performances / Value 255 performances / Year on year against the same period last year -21 performances, Indicator name Attendance / Value 91 10,000 people / Year on year against the same period last year 7 10,000 people, Indicator name Average ticket price / Value ¥12,227 / Year on year against the same period last year ¥-1,323, Indicator name Box office revenue from the anime and visual content business / Value ¥28.1 100 million / Year on year against the same period last year Not disclosed
Unit price and quantity metricsIndicator name Average ticket price / Value ¥12,227 / Year on year against the same period last year ¥-1,323, Indicator name Attendance / Value 91 10,000 people / Year on year against the same period last year 7 10,000 people, Indicator name Average album price / Value ¥2,305 / Year on year against the same period last year ¥398, Indicator name Albums sold / Value 385 thousand prescriptions / Year on year against the same period last year -172 thousand prescriptions, Indicator name Average single price / Value ¥1,229 / Year on year against the same period last year ¥-178, Indicator name Singles sold / Value 1,698 thousand prescriptions / Year on year against the same period last year 1,166 thousand prescriptions, Indicator name Average DVD/Blu-ray price / Value ¥7,494 / Year on year against the same period last year ¥2,458, Indicator name DVDs/Blu-rays sold / Value 49 thousand prescriptions / Year on year against the same period last year -740 thousand prescriptions
New initiativesMeasures Launch of a global music catalog acquisition project totaling approximately $100 million / Details Acquire Infamous's music catalog as the first phase, Measures Production of Season 2 of the TV anime Witch Hat Atelier / Details Production of Season 2 has been approved
Items this document does not state (14)
Progress against full-year forecastNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial 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.

The anime and visual content business benefited from strong performance by major live-action films and theatrical anime releases. Meanwhile, revenue from stadium concerts and packaged works declined in the music business. In addition, an allowance for business restructuring losses was recorded as an extraordinary loss in connection with the review of the Asia business.

How to read this page

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