Nippon Television Holdings, Inc. · TSE:9404
Nippon Television — Q1 FY2023 Earnings Presentation
36 slides from Nippon Television's earnings presentation, Jul 28, 2023
Slide 1: FY2023 1Q Financial Results
Nippon Television Holdings, Inc. FY2023 1Q Financial Results July 28, 2023
Slide 2: FY2023 1Q Overview of Financial Results
FY2023 1Q Overview of Financial Results This presentation may include forward-looking statements. Actual results, however, could differ significantly as a result of various factors and circumstances. Forward-looking statements contained herein are not guarantees or commitments. Reproduction of this
Slide 3: FY2023 1Q Highlights
FY2023 1Q Highlights Lower sales and operating profit ■Net sales As higher prices for raw materials suppressed the advertising market, terrestrial television advertising revenue declined. Notable efforts from group companies other than Nippon TV pushed their total sales higher. ■ Profits Operating p
Slide 4: Nippon TV HD: Consolidated Financial Results
Nippon TV HD: Consolidated Financial Results (Millions of yen) FY2022 1Q FY2023 1Q YoY Change Net Sales 100,453 98,010 △2,442 △2.4％ Operating Profit 11,692 10,344 △1,347 △11.5％ Recurring Profit 12,472 13,203 731 5.9％ Net Income attributable to owners of the parent 8,008 8,443 435 5.4％ (Millions of y
Slide 5: Net Sales YoY Change Components
Net Sales YoY Change Components (Millions of yen) +279 HD: Consolidated Results Group Companies Nippon TV △2,442 Content Strategy Nippon Nippon MURAYAMA TIPNESS Other and Current New Business Previous Television Television INC. Limited Consolidated period period Terrestrial Events/Content Adjustment
Slide 6: Operating Profit YoY Change Components
Operating Profit YoY Change Components (Millions of yen) HD: Consolidated Results Group Companies Nippon TV △1,347 Content Strategy Previous Nippon TV MURAYAMA TIPNESS Other and Current period New Business INC. period Limited Consolidated Operating Operating (Incl. Goodwill Adjustment Profit Referen
Slide 7: Financial Highlights of Group Companies
Financial Highlights of Group Companies ※(Millions of yen)（％ YoY） Nippon Television BS Nippon Corp. CS Nippon Corp. VAP Inc. TIPNESS Limited Music Corp. Net Sales 4,076 △1.9% 2,274 △9.3% 2,190 9.5% 1,653 △10.5% 6,598 2.2% Operating 244 △21.3% △75 － 663 60.3% 536 61.5% △21 － Profit Recurring 252 △20.
Slide 8: Nippon TV Financial Results
Nippon TV Financial Results (Millions of yen) FY2022 1Q FY2023 1Q YoY Change Net Sales 71,311 68,601 △2,709 △3.8％ Operating Profit 9,952 8,077 △1,874 △18.8％ Recurring Profit 11,975 10,239 △1,736 △14.5％ HD: Consolidated Results Net Income 7,859 7,127 △731 △9.3％ Group Companies Nippon TV Content Strat
Slide 9: Nippon TV: Advertising Revenue
Nippon TV: Advertising Revenue (Millions of yen) FY2022 1Q FY2023 1Q YoY Change Advertising Revenue 57,211 54,044 △3,166 △5.5％ Time 27,130 25,016 △2,114 △7.8％ Spot 29,093 27,854 △1,238 △4.3% Digital Ad. 987 1,173 186 18.9% HD: Consolidated Results FY2023 Advertising Revenue YoY Group Companies Time
Slide 10: Nippon TV: Net Sales and Cost of Sales
Nippon TV: Net Sales and Cost of Sales (Millions of yen) Net Sales FY2022 1Q FY2023 1Q YoY Change Advertising Revenue 57,211 54,044 △3,166 △5.5% Program Sales 2,726 2,745 18 0.7% Events/Content Business Sales 10,787 11,067 279 2.6% Real Estate Business 585 744 158 27.1% Total 71,311 68,601 △2,709 △3
Slide 11: Nippon TV: Production Costs
Nippon TV: Production Costs (Millions of yen) FY2022 1Q FY2023 1Q YoY Change 21,442 21,531 89 0.4% (Millions of yen) 1Q Production Costs (Millions of yen) (Ref.) Production Costs (FY) 95,245 100,000 100,000 88,421 87,526 84,544 HD: Consolidated 80,000 80,000 Results Group 60,000 60,000 Companies 40,
Slide 12: Nippon TV: Events/Content Business Sales and Balance
Nippon TV: Events/Content Business Sales and Balance Sales Balance FY2023 1Q Change FY2023 1Q Change Movies 954 △3.3% 601 △8.9％ Events 1,519 125.5% 234 94.2％ Retail Business 1,703 △12.3% 28 △67.6％ HD: Consolidated Results Anime 1,515 66.8％ 644 44.6％ Group International Companies Business（excl. Anime
Slide 13: CAPEX and Depreciation (Consolidated)
CAPEX and Depreciation (Consolidated) (Billions of yen) Depreciation and CAPEX amount Amortization FY2023 1Q 1.3 3.2 CAPEX amount Depreciation and Amortization 21.2 20.0 19.1 HD: Consolidated 20.0 17.4 Results 14.2 15.8 13.2 13.0 14.0 13.6 13.4 Group 12.7 Companies 9.9 9.0 10.0 7.0 10.0 Nippon TV Co
Slide 14: Content Strategy
Content Strategy
Slide 15: Content Strategy Arm Reorganized (6/1)
Content Strategy Arm Reorganized (6/1) Streaming and digital marketing were transferred from the former ICT Business Division to the Content Strategy Division. ⇩ Synergies from broadcasting and streaming are combined with marketing communications to yield an organization that strongly promotes a con
Slide 16: New Drama Measures: Broadcast + Streaming
New Drama Measures: Broadcast + Streaming New Broadcast + Streaming Measures for July 【A】 “The Greatest Teacher” ・Airs Saturdays 10 pm, 54 mins, nationwide ・Stream on TVer & Hulu after broadcast ・Stream original digital content with plot that is linked to story aired on TV 【B】 “The Greatest Teacher
Slide 17: Basketball and Rugby Make Japan Go Wild!
Basketball and Rugby Make Japan Go Wild! HD: Consolidated Results Group Companies Nippon TV Content Strategy 4 years ago: Rugby World Cup; 2 years ago: Tokyo Olympics & Paralympics New Business This fall, that craze returns to Japan! Basketball and rugby world cups, aired live on Nippon TV Reference
Slide 18: 2023 April Cour Individual Viewer Ratings
2023 April Cour Individual Viewer Ratings April 03, 2023 – July 02, 2023 NTV EX TBS TX CX All Day ① 3.4 ① 3.4 ③ 2.6 ⑤ 1.1 ④ 2.3 6:00 to 24:00 Prime Time ① 5.1 ① 5.1 ③ 4.0 ⑤ 2.6 ④ 3.6 19:00 to 23:00 Golden Time ① 5.4 ② 5.1 ③ 4.1 ⑤ 3.0 ④ 3.5 19:00 to 22:00 HD: Consolidated Results Non-Prime Time ① 2.9
Slide 19: 2023 April Cour Core Target Viewer Ratings
2023 April Cour Core Target Viewer Ratings April 03, 2023 – July 02, 2023 NTV EX TBS TX CX All Day ① 2.6 ④ 1.2 ③ 1.5 ⑤ 0.5 ② 1.7 6:00 to 24:00 Prime Time ① 4.3 ④ 2.3 ② 3.0 ⑤ 1.2 ③ 2.8 19:00 to 23:00 Golden Time ① 4.6 ④ 2.2 ② 3.0 ⑤ 1.3 ③ 2.8 19:00 to 22:00 HD: Consolidated Results Non-Prime Time ① 2.
Slide 20: FY2023 Movies & Events
FY2023 Movies & Events ●KINGDOM: The Flame of Destiny In Toho Cinema theaters nationwide July 28, 2023 (Fri) Total series sales over ￥10 bil! Wildly popular Nippon TV film comes out anew! “KINGDOM” sold ￥5.72 bil in 2019. “KINGDOM 2” sold ￥5.2 bil in 2022. It is a wildly popular film that outsold ot
Slide 21: FY2023 Anime Business
FY2023 Anime Business ●Frieren: Beyond Journey's End Debuted on Sep 29 as a 2-hour special on FRIDAY ROAD SHOW, airing afterwards on the anime slot. Manga Taisho 2021 Grand Prize winner finally a much-awaited anime! Follow the journey of Frieren the magician and her friends. Frieren the magician is
Slide 22: FY2023 IP Business
FY2023 IP Business FY2023 will be another year of numerous new IP and growth. ◆Rock band QUEEN BEE’s ◆BiSH, the punk band that does not charismatic vocalist Avu-chan use instruments, dissolved at the produced RYUGUJO, a song & dance height of their popularity. A former group of 7. After a major debu
Slide 23: Hit IP Anpanman
Hit IP Anpanman TV broadcast Key developments (Nippon TV, BS Nippon TV Music agrees to a Nippon, CS license with China Nippon, etc.) International License agreed in June 2023 with expansion SVOD Shanghai Character License Administrative Co., Ltd. to distribute (Nippon TV, (Hulu, etc.) Anpanman in Ch
Slide 24: HJ Holdings
HJ Holdings Hulu and Disney+ bundle plan launched! On July 12 (Wed), we launched the Hulu | Disney+ Bundle Plan for subscribers to enjoy both SVOD services. For a great deal, subscribers can avail of Japan and the world’s vast content and entertainment. This bundle plan offers Hulu’s proudly Japanes
Slide 25: HJ Holdings
HJ Holdings (Unit: Millions of Yen) Net Sales Operating Profit Recurring Profit Net Income FY2023 1Q 8,222 284 315 314 ■A slew of large-scale Hulu originals co- ■Hit Hulu exclusives from vast genres produced with overseas partners capture new subscribers! featuring star actors from Japan! FY2023 1Q
Slide 26: Streaming Business: TVer (AVOD)
Streaming Business: TVer (AVOD) TVer Highlights ■Over 650 programs from all broadcasters streamed ■1Q all broadcasters, all content: Plays: 993 mil (+13% vs FY2022 4Q) Unique Browsers: 41.71 (All content on TVer with ads) million (+10% vs FY2022 4Q) ■Total app downloads: over 60 mil Nippon TV Initia
Slide 27: New Business, M&A
New Business, M&A
Slide 28: Alpha Code
Alpha Code Invested in Alpha Code, Inc. in July 2023, a 180/360-degree 3D live-action video VR/XR content production and streaming platform company. Apple and other mega tech companies in the US and China have announced VR/XR devices one after another and the VR/XR market is expected to grow fur
Slide 29: Nozoite Nippon (LivePark Business)
Nozoite Nippon (LivePark Business) Launched 7/14, “Nozoite Nippon” videos promote regional revitalization Nippon TV Group’s LivePark collaborates with multiple regional TV stations and the Rakuten Group LivePark operates the programming and Rakuten handles sales and attracting customers with p
Slide 30: Reference Materials
Reference Materials
Slide 31: Segment Results
Segment Results (Millions of yen) Segment Profit Net Sales (△ Loss) FY2022 1Q FY2023 1Q Change FY2022 1Q FY2023 1Q Change Media Content Business 93,154 90,327 △2,827 11,295 9,535 △1,760 Life and Health HD: Consolidated Related Business 6,457 6,598 140 △223 6 230 Results Group Real Estate-Related Com
Slide 32: Consolidated Forecast and Dividend Forecast (as of May 11)
Consolidated Forecast and Dividend Forecast (as of May 11) Unchanged from previous forecast FY2022 FY2023 (Millions of yen) Change Change (%) Result Forecast Net Sales 413,979 436,000 22,021 5.3% Operating Profit 46,593 48,000 1,407 3.0% Recurring Profit 51,775 54,000 2,224 4.3% Profit attributabl
Slide 33: FY2023 1Q Spot Sales - Terrestrial Broadcasting (Nippon TV)
FY2023 1Q Spot Sales ‐ Terrestrial Broadcasting (Nippon TV) Share Change Share Change FY2022 1Q FY2023 1Q (%) (%) (%) (%) 1 Service 15.4 41.2% Service 15.2 △5.7% 18.0% 16.0% 2 Telecom/game 11.2 △38.7% Telecom/game 10.7 △8.5% 14.0% FY2022 1Q 12.0% 10.0% 8.0% FY2023 1Q 3 Cosmetics/toiletries 8.5 △25.8
Slide 34: Movie Lineup for FY2023
Movie Lineup for FY2023 ★＝Nippon TV is co-organizer 〇＝Nippon TV is an investor in the film■=Nippon TV is lead organizer Date Title Distributor Friday 〇 CITY HUNTER THE MOVIE: Aniplex September 8 Angel Dust Ⓒ北条司/コアミックス・ 「2023 劇場版シティハンター」制作委員会 Friday ■ We're Millennials. TOHO HD: Consolidated October
Slide 35: Event Line up for FY2023
Event Line up for FY2023 Date Event Wednesday July 19,2023 – Monday July 24, 2023 Nihombashi Mitsukoshi Main Store "Burari stopover trip" Delicious food and art tour along the railway line Tuesday October 31, 2023 – Wednesday November 1,2023 HD: Consolidated Results KIOI HALL JOE HISAISHI presents M
Slide 36: Capital Efficiency Plans
Capital Efficiency Plans As of May 11, 2023 Promote growth strategies according to Medium-Term Management Plan •We will aim to increase sales and profits by advancing our priority targets, namely “Maximize the value of content,” “Accelerate new business creation” and “Build a wellness economic zone.
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