TV Asahi Holdings Corporation FY2026 Q2 Earnings Report

Financial Highlights

• Net Sales: ¥165.56B
• Operating Income: ¥14.57B
• Net Income: ¥7.84B
• EPS: ¥145.21

Income Statement

Balance Sheet

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

TV Asahi Holdings delivered a solid topline and an exceptionally strong earnings rebound in FY2026 Q2. Revenue rose 7.6% year over year to ¥165.6bn, indicating a healthier advertising and content monetization environment. Operating income surged 140.9% YoY to ¥14.6bn, signaling significant operating leverage and cost discipline versus the prior-year period. Gross profit reached ¥39.1bn with a margin of 23.6%, while the operating margin expanded to roughly 8.8%, a notable improvement for a terrestrial broadcaster. Ordinary income of ¥20.3bn exceeded operating income by about ¥5.7bn, implying sizable non-operating gains (e.g., investment income or securities-related gains). Net income rose 90.4% YoY to ¥14.7bn, translating to an 8.85% net margin. The DuPont decomposition (net margin 8.85%, asset turnover 0.296x, financial leverage 1.22x) produces an ROE of 3.20%, consistent with the reported figure. Asset turnover remains modest, typical for broadcasters with substantial fixed assets and investment portfolios. Leverage is conservative: total liabilities of ¥111.7bn against equity of ¥457.7bn imply low balance-sheet risk. Liquidity is strong with a current ratio of 213.5% and a quick ratio of 201.4%, supported by modest inventories of ¥10.0bn. Working capital stands at ¥94.1bn, providing ample operating flexibility. The implied effective tax rate, based on income tax expense of ¥2.7bn, appears around the mid-teens, though JGAAP income categorizations may affect comparability. Cash flow statement items are unreported in this dataset, limiting assessment of earnings-to-cash conversion and free cash flow coverage. Dividend figures are also unreported here, preventing a payout assessment despite EPS of ¥145.21. Overall, profitability momentum and a fortress-like balance sheet underpin resilience; however, the sustainability of non-operating gains and operating margin expansion needs monitoring. Data limitations (cash flows, depreciation, interest, equity ratio field) require caution; conclusions focus on available non-zero items.

Profitability Analysis

ROE_decomposition:

• net_profit_margin: 8.85%
• asset_turnover: 0.296
• financial_leverage: 1.22
• calculated_ROE: 3.20%
• commentary: ROE is driven primarily by improved margins rather than leverage or asset turnover. Low leverage constrains ROE mechanically but enhances risk profile. margin_quality:
• gross_margin: 23.6%
• operating_margin: 8.8% (≈¥14.6bn / ¥165.6bn)
• net_margin: 8.85%
• ordinary_vs_operating: Ordinary income exceeds operating income by ~¥5.7bn, pointing to meaningful non-operating gains. Core margin improvement is evident, but part of bottom-line strength reflects non-operating items. operating_leverage: Revenue +7.6% YoY with operating income +140.9% YoY indicates strong operating leverage, likely from tighter programming costs, improved ad mix (spot recovery), and favorable event/special programming timing.

Growth Assessment

revenue_sustainability: Topline growth of 7.6% suggests recovery in ad demand and possibly contribution from content/IP and digital initiatives. Sustainability depends on ratings, event calendars, and macro-sensitive spot advertising. profit_quality: Operating profit acceleration is robust; however, the sizable gap between ordinary and operating income indicates non-operating contributions that may be volatile. Core profitability has improved, but normalization of non-operating items could temper net income growth. outlook: Near-term trajectory is constructive given margin gains and strong balance sheet capacity to invest in content and digital. Key swing factors include ad market trends, sports/large-event rights, content cost inflation, and monetization of digital platforms.

Financial Health

liquidity:

• current_ratio: 213.5%
• quick_ratio: 201.4%
• working_capital: ¥94.1bn
• commentary: High liquidity with limited reliance on inventories (¥10.0bn) provides resilience against advertising cyclicality and production timing. solvency:
• total_assets: ¥560.2bn
• total_liabilities: ¥111.7bn
• total_equity: ¥457.7bn
• debt_to_equity: 0.24x
• leverage_commentary: Conservative capital structure with low leverage reduces refinancing and covenant risk and supports strategic flexibility. capital_structure: Assets-to-equity of ~1.22x indicates a predominantly equity-funded balance sheet. Ordinary income exceeding operating income suggests exposure to marketable securities or financial assets; mark-to-market volatility should be monitored.

Cash Flow Quality

earnings_quality: Cash flow items are unreported in this dataset. As such, OCF/NI and FCF conversion cannot be assessed. Given the sector’s typical working capital seasonality (content payments, rights fees), cash conversion can be lumpy quarter to quarter. FCF_analysis: Free cash flow is unreported. Without depreciation and capex data, EBITDA and maintenance vs. growth capex split cannot be evaluated. working_capital: Working capital of ¥94.1bn and low inventories suggest limited inventory risk; however, receivables collection from advertisers and production advances remain key determinants of cash conversion.

Dividend Sustainability

payout_ratio_assessment: Dividend and payout ratio are unreported. With EPS at ¥145.21, capacity appears supported by low leverage, but formal assessment requires actual dividend and cash flow data. FCF_coverage: Not assessable due to unreported operating and investing cash flows. policy_outlook: Japanese broadcasters typically target stable dividends with potential buybacks aligned to earnings visibility. Future distributions will depend on ad market stability, content investment needs, and the level/volatility of non-operating gains.

Risk Assessment

Business Risks:

• Advertising cyclicality tied to macro conditions and ratings performance
• Audience share volatility impacting spot ad revenue and pricing
• Content cost inflation and sports/rights fee escalation
• Execution risk in digital/streaming monetization amid intensifying competition
• Event programming timing creating earnings volatility between quarters
• Regulatory and compliance risks in broadcasting standards and spectrum
• Talent and production capacity constraints affecting programming pipeline

Financial Risks:

• Earnings sensitivity to non-operating gains from securities and financial assets
• Potential impairment risk on content and investments if performance weakens
• Working capital swings from production cycles and advertiser payment timing
• Market valuation volatility impacting ordinary income

Key Concerns:

• Sustainability of the widened operating margin after a sharp YoY jump
• Reliance on non-operating income to bridge from operating to ordinary profit
• Limited visibility on cash generation due to unreported cash flow data

Investment Implications

Key Takeaways:

• Revenue grew 7.6% YoY to ¥165.6bn with strong operating leverage.
• Operating income increased 140.9% YoY to ¥14.6bn; operating margin ~8.8%.
• Ordinary income exceeded operating income by ~¥5.7bn, indicating non-operating support.
• Net income of ¥14.7bn implies an 8.85% margin; ROE calculated at 3.20%.
• Balance sheet is conservatively financed with liabilities/equity ~0.24x.
• Liquidity is strong: current ratio 213.5%, quick ratio 201.4%, working capital ¥94.1bn.
• Cash flows and dividends are unreported here, limiting payout and FCF analysis.

Metrics to Watch:

• Spot vs. time advertising trends and average unit prices
• Programming and rights costs as a percentage of revenue
• Ordinary income components (securities/investment gains) and volatility
• Digital/content IP revenue growth and profitability
• Audience ratings and share in key time slots
• Capex and content capitalization/amortization patterns
• Receivables collection and OCF conversion once reported

Relative Positioning: Within domestic terrestrial broadcasters, TV Asahi exhibits a strong balance sheet with low leverage and a recent improvement in operating profitability; sustained margin gains and reduced reliance on non-operating income would strengthen its relative standing versus peers.

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