Operating profit rose despite lower revenue, highlighting the underlying earnings power after the end of the broadcasting business

Revenue in the first quarter of FY2027 was ¥3,501.838 million, down ¥422.538 million, or 10.8%, from ¥3,924.376 million in the same period of the previous year. Operating profit, however, rose ¥17.831 million to ¥262.221 million from ¥244.390 million, and the operating margin increased from approximately 6.2% to approximately 7.5%. Net income attributable to owners of the parent also increased by ¥79.195 million to ¥212.573 million from ¥133.378 million in the same period of the previous year.

However, the year-on-year comparison of revenue includes the impact of Tsuri Vision, whose entire shareholding was transferred on 31 March 2026. In FY2026, the broadcasting segment generated revenue of ¥2,243.888 million and segment profit of ¥114.540 million. From FY2027, the broadcasting segment was discontinued, and the reporting segments were changed from 5 categories to 4: Education, Studio & Production, Technology, and Other. Accordingly, the decline in consolidated revenue cannot be interpreted as a straightforward decline in demand for the existing businesses.

The first-quarter breakdown was as follows: Education generated revenue of ¥1,528.388 million and segment profit of ¥349.534 million; Studio & Production generated revenue of ¥363.938 million and an operating loss of ¥5.536 million; Technology generated revenue of ¥1,635.775 million and segment profit of ¥163.748 million; and Other generated revenue of ¥55.628 million and an operating loss of ¥11.917 million. Higher profit in Education and the narrowing loss in Studio & Production supported overall earnings, while Technology recorded higher revenue but lower profit, and Other reported a wider loss.

The quality of earnings also warrants attention. There was no extraordinary loss in the first quarter, and the ¥30.820 million loss on disposal of fixed assets recorded in the same period of the previous year did not recur. Thus, the increase in net income reflects not only operating improvement but also the absence of a one-off loss recorded in the previous year. As of the end of September 2026, it will be important to see whether the company can disclose continuing-operations revenue, profit by segment, and the presence or absence of extraordinary gains and losses separately after the end of broadcasting.