FY2027 Q1: Revenue increased, but profit growth remained concentrated in the anime and visual content business

Consolidated revenue for Q1 of the fiscal year ending March 2027 was ¥3,493 million, up 6.7% year on year. Operating profit was ¥127.7 million, down 12.4%; ordinary profit was ¥137.2 million, down 4.7%; and profit attributable to owners of the parent was ¥42.5 million, down 44.2%. The earnings presentation reported a gross profit margin of 28.7% and an operating margin of 3.7%, both down 0.8 percentage points year on year. The pattern in which revenue growth does not translate directly into operating profit growth remains in place.

By segment, revenue in the anime and visual content business was ¥874.7 million and segment profit was ¥118.7 million, representing sharp growth of 108.1% in revenue and 1,946.6% in profit year on year. By contrast, the music business reported revenue of ¥2,556.7 million and profit of ¥34.5 million, down 8.0% and 77.7%, respectively. The international business reported revenue of ¥59.7 million and an operating loss of ¥26.1 million, with revenue down 18.3%. Consolidated revenue growth currently depends heavily on the contribution from the anime and visual content business.

At the next results announcement, we will look for confirmation that both revenue and profit can remain above the prior-year level after the benefit from the release of new anime and visual content has run its course. In particular, it will be important to see whether the music business's margin improves from approximately 1.3% in Q1 and whether the international business narrows its loss. Although the company described Q1 as better than expected, it has not disclosed a quantitative progress rate against its full-year operating profit forecast of ¥6,000 million. Progress in profit accumulation through H1 therefore needs to be assessed by segment.