| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥3394.9B | ¥3240.6B | +4.8% |
| Operating Income / Operating Profit | ¥261.8B | ¥197.0B | +32.9% |
| Ordinary Income | ¥365.7B | ¥285.3B | +28.2% |
| Net Income / Net Profit | ¥298.7B | ¥261.9B | +14.1% |
| ROE | 6.4% | 5.8% | - |
For the fiscal year ended March 2026, Revenue was ¥3,394.9B (YoY +154.3B +4.8%), Operating Income was ¥261.8B (YoY +64.8B +32.9%), Ordinary Income was ¥365.7B (YoY +80.4B +28.2%), and Net Income attributable to owners of the parent was ¥298.7B (YoY +36.8B +14.1%). The operating margin improved 1.6pt to 7.7% from 6.1% the prior year, demonstrating strong operating leverage with Operating Income increasing +32.9% versus Revenue growth of +4.8%. Higher profitability in the Internet Business (Operating Margin 14.7%) and profit growth in the TV Broadcasting Business (Operating Income +66.2%) drove margin expansion. At the ordinary income level, equity-method investment income of ¥84.8B (prior year ¥67.3B) was a significant contributor, and at the net income level, special gains of ¥75.0B including ¥70.0B of gains on sales of investment securities boosted results. Gross margin was 30.5% and net margin 8.8% (prior year 8.1%), indicating an improved revenue structure. While ROE at 6.4% still leaves room for improvement on capital efficiency, the trend of higher revenue and profit continued.
Revenue increased ¥154.3B YoY (+4.8%). By segment, the TV Broadcasting Business recorded Revenue of ¥2,487.5B (+5.0%), accounting for 73.3% of consolidated sales, supported by increased ad placements and growth in time/spot revenues. The Internet Business maintained strong growth with Revenue of ¥360.9B (+13.3%), driven by expansion of recurring revenue from distribution services. Conversely, the Shopping Business declined to ¥184.0B (-9.0%), impacted by a deteriorating product mix in EC/mail-order. Cost of sales was ¥2,360.2B, yielding a gross margin of 30.5% (prior year 28.0%), a 2.5pt improvement, supported by a higher mix of high-margin digital businesses and cost optimization.
SG&A increased to ¥772.9B (prior year ¥709.5B, +8.9%), so cost growth slightly outpaced sales growth; however, gross profit expansion (+¥142.7B) exceeded SG&A increases (+¥63.4B), resulting in Operating Income of ¥261.8B (+32.9%). Operating margin improved to 7.7% from 6.1% a year ago (+1.6pt). By segment, the Internet Business margin of 14.7% and the TV Broadcasting Business margin of 7.5% lifted the consolidated average. At the ordinary income level, non-operating income of ¥106.9B including equity-method investment income of ¥84.8B (prior year ¥67.3B, +26.0%) and dividend income of ¥14.0B drove Ordinary Income to ¥365.7B (+28.2%). In extraordinary items, special gains of ¥75.0B (primarily ¥70.0B gain on sales of investment securities) were recorded, while special losses of ¥29.9B (including ¥3.6B impairment on investment securities) were recognized, netting a pre-tax boost of ¥45.1B. Pre-tax income was ¥410.8B, and after income taxes of ¥112.1B (effective tax rate 27.3%), Net Income was ¥298.7B (+14.1%). In conclusion, revenue and profit increased, with digital high-margin transition and stable equity-method gains being primary drivers of improved profitability.
The TV Broadcasting Business recorded Revenue of ¥2,487.5B (+5.0%) and Operating Income of ¥187.6B (+66.2%), with an operating margin of 7.5%, contributing 71.6% of consolidated Operating Income and driving consolidated revenue and profit growth. Growth in advertising revenue and improved content production efficiency supported margin improvement. The Internet Business posted Revenue of ¥360.9B (+13.3%) and Operating Income of ¥53.1B (+43.6%), maintaining a high operating margin of 14.7%, with recurring revenue expansion from distribution services and high gross-margin structure as strengths. The Shopping Business recorded Revenue of ¥184.0B (-9.0%) and Operating Income of ¥10.8B (-28.1%), with an operating margin of 5.9%, depressed by a deteriorating EC/mail-order product mix and reduced promotional efficiency. The TV Broadcasting Business contributed roughly 72% of consolidated Operating Income and the Internet Business about 20%, forming the core earnings base.
Profitability: Operating margin 7.7% (prior year 6.1%, +1.6pt), Net margin 8.8% (prior year 8.1%, +0.7pt), indicating improving profitability. ROE 6.4% (prior year 6.0%) remains below 8% and suggests room for improvement, though the rise in net margin contributed positively. Non-operating income is 3.1% of Revenue, primarily composed of equity-method investment income of ¥84.8B and dividend income of ¥14.0B, indicating relatively high persistence. Special gains of ¥75.0B (primarily ¥70.0B gain on sales of investment securities) are one-off and core earning power should be evaluated at the operating income level.
Cash quality: Operating Cash Flow (OCF) was ¥249.5B versus Net Income of ¥298.7B, yielding an OCF/Net Income ratio of 0.84x, which is somewhat weak and indicates conversion of profit to cash remains an issue. Operating CF subtotal (pre-working capital changes) was ¥356.9B; increases in accounts receivable (-¥17.4B), inventories (-¥7.4B), and tax payments (-¥147.3B) compressed OCF. Days Sales Outstanding (DSO) is approximately 99 days (accounts receivable ¥923.7B ÷ Revenue ¥3,394.9B × 365 days), relatively long; improving collection efficiency is key to working capital optimization.
Investment efficiency: Total asset turnover was 0.58x (Revenue ¥3,394.9B ÷ average total assets approx. ¥5,703B), and financial leverage was 1.24x (Total Assets ¥5,811.1B ÷ Net Assets ¥4,676.9B), indicating a conservative capital structure that suppresses capital efficiency. Capital expenditures were ¥126.1B versus depreciation of ¥92.1B, with an investment/depreciation ratio of 1.37x, indicating growth investment mode; opening of Tokyo Dream Park (TDP) increased Buildings and structures by +¥364B and Machinery and equipment by +¥52B, pushing up PPE.
Financial soundness: Equity Ratio 80.5% (prior year 80.0%), current ratio 214% (Current Assets ¥1,851.7B ÷ Current Liabilities ¥865.4B) — extremely robust, with very low reliance on interest-bearing debt. Cash and deposits ¥362.3B, short-term investments ¥3,201B (assuming liquid portion of Marketable securities ¥320.1B + Investment securities ¥2,132.6B) provide strong liquidity relative to retirement benefit liabilities of ¥82.0B.
Operating CF of ¥249.5B (YoY -5.9%) was calculated from an operating CF subtotal of ¥356.9B minus corporate tax payments of -¥147.3B plus interest and dividend receipts of +¥39.0B, yielding an OCF/Net Income ratio of 0.84x near the threshold. Increases in accounts receivable (-¥17.4B) and inventory (-¥7.4B) pressured working-capital-driven OCF, and a DSO of 99 days with a long collections profile hindered cash conversion. Investing CF was -¥92.8B, primarily capital expenditures of -¥126.1B (mainly TDP-related), offset by redemption of short-term investments +¥810B, purchases of marketable securities -¥789.9B, sales of investment securities +¥72.9B, etc., showing net adjustments around substantial investment cash outflows. Financing CF was -¥111.9B, including dividend payments -¥73.7B and share buybacks -¥30.0B, funding total shareholder returns of approximately ¥103.7B through cash flows. Free Cash Flow (FCF) was ¥156.6B (Operating CF + Investing CF), which sufficiently covered dividends and share buybacks; FCF coverage was 2.06x, indicating high sustainability of shareholder returns. Cash and cash equivalents at year-end increased to ¥442.3B (prior year ¥397.6B, +¥44.7B), further strengthening liquidity. Cash conversion ratio (Operating CF ÷ EBITDA) was 0.70x (Operating CF ¥249.5B ÷ EBITDA approx. ¥355.9B = Operating Income ¥261.8B + Depreciation ¥92.1B + assumed amortization of goodwill), somewhat weak, implying improvement in cash conversion remains a future theme.
Recurring earnings are supported by operating income from the TV Broadcasting and Internet businesses plus equity-method investment income of ¥84.8B (prior year ¥67.3B, +26.0%), with equity-method income comprising roughly 79% of non-operating income of ¥106.9B. One-off items included special gains of ¥75.0B (mainly ¥70.0B gain on sales of investment securities) and special losses of ¥29.9B (including ¥3.6B impairment on investment securities), netting +¥45.1B to pre-tax income. The gap between Ordinary Income of ¥365.7B and Pre-tax Income of ¥410.8B is +¥45.1B, and the estimated impact of one-off items on post-tax Net Income ¥298.7B is about 15%. With Operating CF ¥249.5B versus Net Income ¥298.7B, OCF/Net Income is 0.84x. The difference between Comprehensive Income ¥300.9B and Net Income ¥298.7B is +¥2.2B, minor; OCI movements were Foreign currency translation adjustments -¥0.1B, Valuation difference on available-for-sale securities -¥32.9B, Remeasurements of defined benefit plans +¥33.6B, and OCI share of associates +¥1.5B, totaling +¥2.2B. The accrual ratio is approximately 0.8% (working-capital change -¥49.9B + other adjustments divided by Net Income ¥298.7B, assumed), indicating generally healthy earnings quality, though OCF/Net Income 0.84x suggests room for improvement.
The company’s guidance is Revenue ¥3,500.0B (YoY +3.1%), Operating Income ¥200.0B (YoY -23.6%), Ordinary Income ¥280.0B (YoY -23.4%), Net Income ¥250.0B (EPS forecast ¥248.66), and DPS ¥50. The guidance is conservative, projecting modest revenue growth but a switch to lower operating profit compared with this fiscal year. This likely incorporates start-up costs for Tokyo Dream Park (TDP) (increased depreciation and operating costs), seasonality and utilization uncertainty in the events business, advertising market volatility, and accelerated content investments. Revenue progress ratio (this fiscal year results ¥3,394.9B ÷ forecast ¥3,500.0B) has already reached 97.0%, suggesting the next fiscal year scenario is one of slight revenue growth with compressed margins. The projected operating margin is 5.7% (¥200.0B ÷ ¥3,500.0B), a 2.0pt decline from this year’s 7.7%, reflecting significant initial cost burden. Payout Ratio on the forecast basis is about 20.1% (DPS ¥50 ÷ EPS ¥248.66), down from this year’s 23.6%; if TDP stabilizes, there may be room to raise dividends. Since current-year results have already exceeded guidance, next-year achievement depends on controlling initial costs, maintaining advertising revenue, and TDP crowd-building.
Annual dividend was ¥70 (interim ¥30, year-end ¥40), representing a Payout Ratio of 23.6% (Total dividends approx. ¥70.5B ÷ Net Income ¥298.7B). The year-end dividend included a special dividend of ¥10, making the base dividend equivalent to ¥60. The company executed share buybacks of ¥30.0B, and combined with dividends total shareholder returns were approximately ¥100.5B, giving a Total Return Ratio of about 33.6%. Relative to FCF ¥156.6B, total shareholder returns of ¥100.5B yield an FCF coverage of 1.56x, indicating healthy sustainability supported by a strong balance sheet and stable operating cash flow. The Payout Ratio has averaged 23.6% over the past three years (maintaining this year’s level), showing continuity. Next year’s forecast DPS ¥50 (Payout Ratio approx. 20.1%) reflects conservative guidance, but there remains upside for dividend increases during a recovery. Treasury stock at year-end was 7.99M shares (7.4% of issued shares), preserving flexibility for future returns.
Advertising market volatility: Given concentration with the TV Broadcasting Business representing 73.3% of Revenue and 71.6% of Operating Income, reductions in advertising placements or declines in time/spot rates would directly impact performance. Although TV revenue was solid at +5.0% YoY, economic downturns or shifts in advertiser allocation could flip this to a revenue decline.
Working capital efficiency risk: DSO of 99 days is long, and delays or write-offs related to accounts receivable of ¥923.7B (15.9% of total assets) could pressure OCF. With OCF ¥249.5B versus Net Income ¥298.7B giving OCF/Net Income 0.84x near critical levels, deterioration in receivables management would raise liquidity risk.
TDP start-up risk: Large investments for Tokyo Dream Park increased Buildings and structures by ¥364B and Machinery and equipment by ¥52B; if utilization, attendance, or spend-per-visitor fall short of plan, fixed-cost burdens will compress profits and depreciation burdens (annual depreciation around ¥92B expected to increase) will be heavy. The next fiscal year guidance assuming Operating Income -23.6% incorporates this risk.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating margin | 7.7% | 8.1% (3.6%–16.0%) | -0.4pt |
| Net margin | 8.8% | 5.8% (1.2%–11.6%) | +3.0pt |
Operating margin is slightly below the industry median, but Net margin is 3.0pt above the median, reflecting post-operating contributions from equity-method income and non-operating income that raise earnings at the ordinary income and below levels.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue growth rate (YoY) | 4.8% | 10.1% (1.7%–20.2%) | -5.3pt |
Revenue growth lags the industry median of 10.1% by 5.3pt, placing the company in the lower ranking for growth. High growth in the Internet Business is offset by stable growth in the TV Broadcasting Business, keeping consolidated growth modest.
※ Source: Company compilation
Digital high-margin transition and cost rationalization have driven a trend improvement in operating margin to 7.7% (prior year 6.1%, +1.6pt), with Internet Business margin 14.7% and TV Broadcasting Business margin 7.5% lifting the revenue structure. Sustained growth in digital ARPU/NRR and improved asset turnover through higher TDP utilization will be necessary to raise ROE from 6.4% to above 8%.
A strong balance sheet (Equity Ratio 80.5%, Current Ratio 214%) and positive FCF of ¥156.6B enable simultaneous growth investment and shareholder returns, with a Total Return Ratio of 33.6% and FCF coverage 1.56x supporting sustainability. Next year’s projected profit decline reflects TDP start-up costs, but a maintained payout ratio in the 20% range and flexibility for additional returns after utilization stabilizes mean potential for increased dividends and buybacks.
DSO of 99 days is long; with OCF ¥249.5B versus Net Income ¥298.7B (OCF/Net Income 0.84x) and cash conversion 0.70x, cash quality has room for improvement. Optimizing receivables and inventory and timing of tax payments to restore OCF above ¥300B (OCF/EBITDA >0.9, OCF/Net Income >1.0) is a mid-term focus.
This report is an earnings analysis automatically generated by AI using XBRL financial statement data. It does not constitute a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the company based on public financial statement data. Investment decisions are your responsibility; consult a professional advisor as necessary.