Declining revenue, lower operating profit and a net loss attributable to owners of the parent in the first half

「As a result, for the consolidated fiscal year, net sales increased 11.3% year on year to ¥146,571 million, driven by higher live-related revenue in the music business and strong overseas sales of anime titles in the anime and visual content business, among other factors. Operating profit was ¥4,085 million, compared with an operating loss of ¥1,819 million in the previous fiscal year, due in part to lower selling, general and administrative expenses resulting from a decline in the provision for doubtful accounts and a review of expense execution. Net income attributable to owners of the parent increased 212.1% year on year to ¥3,553 million.」

「Revenue was ¥146,571 million, up 11.3% year on year, while operating income was ¥4,085 million, compared with an operating loss of ¥1,819 million in the previous fiscal year, due mainly to lower selling, general and administrative expenses resulting from a decrease in the provision for allowance for doubtful accounts and a review of expenditure practices.」

「For the interim consolidated accounting period, net sales increased 14.1% year on year to ¥64,028 million, driven by an increase in the number of large-scale live performances in the music business and strong overseas distribution of anime titles in the anime and visual content business, among other factors. Operating profit was ¥1,119 million, compared with an operating loss of ¥2,122 million in the year-earlier period, due in part to lower selling, general and administrative expenses resulting from a decline in the provision for doubtful accounts and a review of expense execution. Interim net income attributable to owners of the parent was ¥864 million, down 47.0% year on year, due in part to extraordinary income from the transfer of shares in a subsidiary recorded in the previous interim consolidated accounting period.」

「For the interim consolidated accounting period, net sales declined 12.8% year on year to ¥56,131 million due to a decrease in the number of large-scale live performances and music package units sold, among other factors. Although operating loss was ¥2,122 million, compared with operating profit of ¥2,167 million in the year-earlier period, interim net income attributable to owners of the parent was ¥1,632 million, down 33.6% year on year, due in part to the recording of extraordinary income associated with the transfer of shares in a subsidiary and the implementation of a third-party allotment.」

「As a result, net sales increased 9.7% year on year to ¥133,387 million, driven by higher revenue from the music business and other factors. However, operating profit declined 62.6% to ¥1,265 million due to the lower gross profit margin, higher cost of sales and selling, general and administrative expenses associated with continued investment to create IP, and other factors. Net income attributable to owners of the parent declined 64.0% to ¥987 million.」

「For the cumulative third-quarter consolidated period, net sales increased 10.4% year on year to ¥94,382 million, driven by higher revenue from the music business and other factors. However, operating profit declined 52.8% to ¥1,577 million due to the lower gross profit margin and other factors, while quarterly net income attributable to owners of the parent declined 49.1% to ¥1,437 million.」

「For the cumulative second-quarter consolidated period, net sales increased 19.0% year on year to ¥64,355 million, driven by higher revenue from the music business and other factors. However, operating profit declined 40.1% to ¥2,167 million due to the lower gross profit margin and other factors, while quarterly net income attributable to owners of the parent declined 23.4% to ¥2,458 million.」

「For the cumulative first-quarter consolidated period, net sales increased to ¥31,973 million, up 12.3% year on year, driven by higher revenue from the music business and other factors. However, operating profit declined 17.8% to ¥1,881 million due to higher personnel and general expenses resulting from the recovery in operating activity. Quarterly net income attributable to owners of the parent increased 61.4% to ¥2,704 million, due in part to the recording of gains on sales of investment securities as extraordinary income.」

「As a result, net sales were ¥121.561 billion, up 23.5% from the previous fiscal year, and operating profit was ¥3.385 billion, up 31.1%. Net income attributable to owners of the parent was ¥2.742 billion, up 198.2%, due to the recognition of gains on the sale of investment securities and other extraordinary income.」

「For the nine-month period ended December 31 of the current fiscal year, higher sales, mainly in the Music business, resulted in net sales of ¥85.525 billion, up 12.5% year on year, operating profit of ¥3.344 billion, down 14.8%, and net income attributable to owners of the parent of ¥2.826 billion, up 17.4%.」

「For the six-month period ended September 30 of the current fiscal year, higher sales in the Music business and other factors resulted in net sales of ¥54.060 billion, up 16.7% year on year, operating profit of ¥3.619 billion, up 37.4%, and net income attributable to owners of the parent of ¥3.207 billion, up 99.0%.」

「For the three-month period ended June 30 of the current fiscal year, higher sales in the Music business and other factors resulted in net sales of ¥28.473 billion, up 46.6% year on year, operating profit of ¥2.288 billion, up 772.1%, and net income attributable to owners of the parent of ¥1.675 billion, compared with ¥11 million in the same period of the previous year.」

「For the nine-month period ended December 31 of the current fiscal year, the impact of the spread of COVID-19 decreased, and sales increased, mainly in the Music business. As a result, net sales were ¥76.032 billion, up 39.0% year on year, operating profit was ¥3.926 billion, compared with an operating loss of ¥3.610 billion in the same period of the previous year, and net income attributable to owners of the parent was ¥2.407 billion, compared with a net loss attributable to owners of the parent of ¥4.284 billion.」

「For the cumulative consolidated first quarter, operating performance was as follows: revenue was ¥19,417 million, up 37.6% year on year, driven by increased sales of music packages and the number of live events held; operating income was ¥262 million, compared with an operating loss of ¥1,054 million in the same period of the previous year; and net income attributable to owners of the parent was ¥11 million, compared with a net loss attributable to owners of the parent of ¥1,704 million.」

「As a result, net sales were ¥81.527 billion, down 39.8% from the previous fiscal year, and operating loss was ¥6.278 billion, compared with operating profit of ¥4.033 billion in the previous fiscal year. Net income attributable to owners of the parent was ¥12.831 billion, compared with a net loss attributable to owners of the parent of ¥1.102 billion in the previous fiscal year, due to the recognition of gains on the sale of fixed assets and other extraordinary income.」

「For the nine-month period ended December 31 of the current fiscal year, the cancellation of live events to prevent the spread of COVID-19 resulted in net sales of ¥54.707 billion, down 45.5% year on year, and an operating loss of ¥3.610 billion, compared with operating profit of ¥2.349 billion in the same period of the previous year. In addition, the company recorded disaster losses related to the cancellation of live events and leave compensation paid to employees, as well as additional retirement benefits associated with the implementation of an early retirement program. As a result, the net loss attributable to owners of the parent was ¥4.284 billion, compared with net income attributable to owners of the parent of ¥59 million in the same period of the previous year.」

「For the six-month period ended September 30 of the current fiscal year, the cancellation of live events to prevent the spread of COVID-19 resulted in net sales of ¥34.279 billion, down 44.0% year on year, and an operating loss of ¥2.229 billion, compared with an operating loss of ¥688 million in the same period of the previous year. In addition, the company recorded a disaster loss related to losses resulting from the cancellation of live events and leave compensation paid to employees, resulting in a net loss attributable to owners of the parent of ¥3.289 billion, compared with a net loss attributable to owners of the parent of ¥1.762 billion in the same period of the previous year.」

「For the first quarter of the current consolidated fiscal year, net sales fell 51.4% year on year to ¥14,108 million and the Group posted an operating loss of ¥1,054 million, compared with operating profit of ¥366 million in the previous year. Loss attributable to owners of the parent was ¥1,704 million, compared with a loss of ¥348 million in the previous year, due mainly to the voluntary suspension of live events to prevent the spread of COVID-19.」

「For the nine-month period ended December 31 of the current fiscal year, video-related events and sales of video software increased in the Anime and Video business, and selling, general and administrative expenses declined in the Digital business. However, sales of music software and the number of live performances declined in the Music business. As a result, net sales were ¥100.312 billion, down 18.2% year on year, operating profit was ¥2.349 billion, down 60.5%, and net income attributable to owners of the parent was ¥59 million, down 97.5%.」

「For the six-month period ended September 30 of the current fiscal year, sales of video software increased in the Anime and Video business and selling, general and administrative expenses declined in the Digital business. However, sales of music software and the number of live performances declined in the Music business. As a result, net sales were ¥61.189 billion, down 26.3% year on year, operating loss was ¥688 million, compared with operating profit of ¥3.712 billion in the same period of the previous year, and the net loss attributable to owners of the parent was ¥1.762 billion, compared with net income attributable to owners of the parent of ¥1.584 billion.」

「For the three-month period ended June 30 of the current fiscal year, net sales fell to ¥29.028 billion, down 10.1% year on year, due mainly to declines in music software sales and the number of live performances in the Music business. However, sales of video software increased in the Anime and Video business and selling, general and administrative expenses declined in the Digital business. As a result, operating profit was ¥366 million, up 136.0%, while the net loss attributable to owners of the parent was ¥348 million, compared with a net loss attributable to owners of the parent of ¥145 million in the same period of the previous year.」

「As a result, net sales were ¥160.126 billion, down 2.0% from the previous fiscal year, operating profit was ¥7.089 billion, up 2.2%, and net income attributable to owners of the parent was ¥2.354 billion, down 9.5%.」

「For the nine-month period ended December 31 of the current fiscal year, sales of music software increased in the Music business. As a result, net sales were ¥122.621 billion, up 1.3% year on year, operating profit was ¥5.952 billion, up 28.0%, and net income attributable to owners of the parent was ¥2.417 billion, up 14.4%.」

「For the six-month period ended September 30 of the current fiscal year, sales of music software increased in the Music business, and the number of high-margin live performances rose. As a result, net sales were ¥83.012 billion, up 21.4% year on year, operating profit was ¥3.712 billion, up 340.4%, and net income attributable to owners of the parent was ¥1.584 billion, compared with a net loss attributable to owners of the parent of ¥633 million in the same period of the previous year.」

「For the three-month period ended June 30 of the current fiscal year, sales from live performances and related businesses increased in the Music business, but sales of video software declined in the Anime business and the number of subscribers to video streaming services fell in the Digital business. As a result, net sales were ¥32.276 billion, down 0.5% year on year, operating profit was ¥155 million, down 86.6%, and the net loss attributable to owners of the parent was ¥145 million, compared with net income attributable to owners of the parent of ¥322 million in the same period of the previous year.」

「For the nine-month period ended December 31 of the current fiscal year, sales of music software increased in the Music business, while certain unprofitable services were discontinued in the Digital business. As a result, net sales were ¥121.075 billion, down 1.6% year on year, operating profit was ¥4.651 billion, up 22.4%, and net income attributable to owners of the parent was ¥2.112 billion, compared with ¥17 million in the same period of the previous year.」

「For the six-month period ended September 30 of the current fiscal year, despite an increase in live attendance in the Music business, sales of music software and anime and video software declined, and certain video streaming services in the Digital business were discontinued. As a result, net sales were ¥68.405 billion, down 9.6% year on year, operating profit was ¥843 million, down 71.6%, and the net loss attributable to owners of the parent was ¥633 million, compared with net income attributable to owners of the parent of ¥672 million in the same period of the previous year.」