BSN MEDIA HOLDINGS,INC. FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥11.05B
• Operating Income: ¥493M
• Net Income: ¥356M
• EPS: ¥62.43

Income Statement

Balance Sheet

Cash Flow Statement

Profitability Ratios

Year-over-Year Comparison

Share Information

Dividend Information

Segment Information

Full Year Forecast

Disclaimer

This data was automatically extracted from XBRL files. Please refer to the original disclosure documents for accuracy.

AI Financial Analysis

Executive Summary

BSN Media Holdings reported FY2026 Q2 consolidated results under JGAAP showing steady topline and operating profit expansion, with notable strength in cash generation and a very conservative balance sheet. Revenue rose 8.1% year over year to ¥11.05 billion, driven by what is likely a combination of advertising recovery and stable content-related revenue streams typical for regional media. Gross profit reached ¥2.79 billion, translating to a gross margin of roughly 25.2%, indicating disciplined cost of sales management. Operating income increased 8.2% YoY to ¥493 million, yielding an operating margin of about 4.5%, broadly consistent with a stable cost base and modest operating leverage. Ordinary income was ¥593 million, benefiting from low interest burden; net income grew 37.8% YoY to ¥374 million, implying improved below-the-line effects and a normalized tax burden. The net profit margin was 3.39%, in line with regional broadcasting peers that typically operate with modest margins. DuPont analysis indicates a calculated ROE of 1.40%, derived from a 3.39% net margin, 0.325x asset turnover, and 1.27x financial leverage. Asset turnover at 0.325x reflects the capital intensity of broadcasting assets, while leverage remains low, pointing to a conservative capital structure. Liquidity is robust with a current ratio of about 3.12x and working capital of approximately ¥10.9 billion, providing strong buffer against cyclical swings. Solvency is very strong: liabilities are only ~0.29x equity, and the equity-to-asset ratio, computable from non-zero disclosed items, is approximately 78.5%. Operating cash flow of ¥1.16 billion was more than 3.0x net income, signaling high earnings quality and favorable working capital movements. Depreciation and amortization of ¥439 million, against EBITDA of about ¥932 million (8.4% margin), indicates a healthy non-cash component underpinning cash generation. Interest coverage is very high at 67.6x, highlighting negligible financial risk from debt service. While the reported effective tax rate metric was shown as 0.0% in the summary, the actual tax expense of ¥174 million against pre-tax income implies a normal tax rate near 32%, consistent with historical Japanese corporate tax levels. Several items were unreported (e.g., cash balance, investing cash flows, dividend per share), which limits precision on free cash flow and dividend capacity; however, available data point to solid fundamentals. Overall, the company demonstrates resilient profitability, strong cash conversion, and an under-levered balance sheet, positioning it well to navigate advertising cyclicality and to invest selectively in content and digital initiatives.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 3.39% (Net Income ¥374m / Revenue ¥11,048m)
• asset_turnover: 0.325x (Revenue ¥11,048m / Assets ¥34,039m)
• financial_leverage: 1.27x (Assets ¥34,039m / Equity ¥26,721m)
• calculated_ROE: 1.40% (matches provided DuPont result) margin_quality:
• gross_margin: 25.2% (¥2,787.9m / ¥11,048m), stable for regional media
• operating_margin: 4.46% (¥493m / ¥11,048m), up with revenue; indicates modest operating leverage
• ordinary_margin: 5.37% (¥593m / ¥11,048m), supported by minimal interest expense
• net_margin: 3.39%, improved YoY alongside stronger below-the-line items operating_leverage: Revenue growth of +8.1% YoY translated into +8.2% YoY operating income growth, suggesting incremental operating leverage but no outsized fixed-cost absorption; depreciation (¥439m) remains a meaningful fixed cost base underpinning leverage potential.

Growth Assessment

revenue_sustainability: Top-line growth of 8.1% YoY appears healthy amidst a mixed advertising environment; durability will depend on spot advertising trends, program ratings, and non-advertising revenue (events, production, digital). profit_quality: Net income growth of 37.8% YoY outpaced revenue due to better ordinary items and a normalizing tax burden; operating profit grew in line with revenue, indicating underlying profit expansion is organic rather than one-off. outlook: With low financial leverage and strong liquidity, the company has capacity to maintain content investments and navigate cyclical ad swings. Continued focus on cost discipline and monetization of digital/ancillary businesses should support mid-single-digit revenue growth and stable-to-slightly higher operating margins, contingent on market conditions.

Financial Health

liquidity:

• current_ratio: 311.7% (¥16,054m / ¥5,151m)
• quick_ratio: 311.7% (inventories unreported/zero in XBRL)
• working_capital: ¥10,903m solvency:
• debt_to_equity: 0.29x (Total liabilities ¥7,825m / Equity ¥26,721m)
• equity_ratio: Approx. 78.5% (Equity ¥26,721m / Assets ¥34,039m) computed from available non-zero items
• interest_coverage: 67.6x (Operating income proxy for EBIT ¥493m / Interest expense ¥7.3m) capital_structure: Balance sheet is conservatively financed with ample equity and limited debt reliance, providing flexibility for investment and resilience through downturns.

Cash Flow Quality

earnings_quality: OCF of ¥1,157m vs. net income of ¥374m yields an OCF/NI ratio of 3.09x, indicating strong cash conversion and supportive working capital dynamics. FCF_analysis: Investing cash flow was unreported (shown as 0), so free cash flow cannot be reliably calculated; EBITDA of ¥932m and modest interest burden suggest underlying capacity to fund maintenance capex and some growth initiatives, but capex visibility is limited. working_capital: High current ratio and positive OCF point to effective receivables and payables management; monitoring AR days and seasonality remains important given advertising billing cycles.

Dividend Sustainability

payout_ratio_assessment: Payout ratio is shown as 0.0% and DPS as 0.00, which likely reflect non-disclosure rather than actual zero; without confirmed DPS, payout sustainability cannot be quantified. FCF_coverage: FCF coverage is shown as 0.00x due to unreported investing cash flows; with solid OCF and low leverage, the balance sheet implies capacity to support dividends, but confirmation requires capex and policy details. policy_outlook: Given conservative leverage and steady cash generation, dividend stability would typically be aligned with media peers; clarity awaits disclosure of dividend policy and actual DPS for the period.

Risk Assessment

Business Risks:

• Advertising cyclicality tied to local and national economic conditions
• Audience ratings and content performance risk impacting ad pricing and fill rates
• Rising content and talent costs pressuring margins
• Shift of ad budgets to digital platforms and competition from OTT
• Regulatory and licensing framework changes for broadcasters
• Event cancellations or disruptions affecting non-ad revenue
• Natural disaster and business continuity risks relevant to regional broadcasters

Financial Risks:

• Potential capex requirements for broadcast infrastructure upgrades and digital investment
• Working capital volatility from advertising billing cycles
• Impairment risk on intangible/program assets if ratings underperform
• Interest rate normalization risk (though current interest burden is low)

Key Concerns:

• Visibility on capex and investing cash flows is limited (investing CF undisclosed)
• Dividend policy and DPS not disclosed, constraining shareholder return assessment
• Asset turnover remains low, requiring sustained revenue growth to lift ROE

Investment Implications

Key Takeaways:

• Solid revenue growth (+8.1% YoY) and stable operating margin indicate resilient core operations
• Strong cash conversion (OCF/NI 3.09x) underscores high earnings quality
• Very conservative balance sheet (equity ratio ~78.5%, D/E 0.29x) reduces financial risk
• ROE is modest at 1.40%, constrained by low asset turnover and limited leverage
• Interest coverage is high at 67.6x, reflecting minimal debt service burden
• Limited disclosure on investing cash flows and dividends hampers FCF and payout analysis

Metrics to Watch:

• Advertising revenue mix and growth (spot vs. time sales) and digital monetization
• Operating margin progression and cost of sales trends
• Capex levels and investing cash flow to assess sustainable FCF
• Working capital metrics (DSO/DPO) impacting cash conversion
• Ordinary income drivers and any non-operating gains/losses
• Tax rate normalization relative to historical levels

Relative Positioning: Within regional Japanese media, the company appears financially conservative with above-average balance sheet strength and cash conversion, while profitability and ROE are modest and reliant on stable advertising markets and disciplined cost control.

Disclaimer

This analysis was auto-generated by AI. Please note the following:

• No Guarantee of Accuracy: The accuracy and completeness of this analysis are not guaranteed. For accurate financial data, please refer to the original disclosure documents published on TDnet or other official sources
• Not Investment Advice: This analysis is for general informational purposes only and does not constitute investment advice under applicable securities laws. It is not a recommendation to buy or sell any specific securities
• At Your Own Risk: Investment decisions should be made at your own discretion and risk. We assume no liability for any losses incurred based on this analysis