Avex Inc. TSE:7860
Avex : Consolidated Financial Summary for Interim Period of Fiscal Year Ending March 31, 2026 (Japanese Accounting Standards)
Source: MarketScreener
November 13, 2025
Avex Inc. Tokyo Stock Exchange, Prime Market
Code No: 7860 URL: https://avex.com/jp/en/
Representative: Katsumi Kuroiwa, President, CEO
Contact: Shinji Hayashi, Representative Director, CFO TEL: 0570(020)050 Scheduled date to submit the Semi-annual Securities Report (Hanki Houkokusho): November 14, 2025
Scheduled date for commencement of dividend payments: December 4, 2025 Supplementary documents for financial results: Yes
Financial results briefing: Yes (briefing for institutional investors and securities analysts planned to be held by video streaming)
Note: All amounts are rounded down to the nearest million yen.
Consolidated operating results for the interim period of fiscal year ending March 31, 2026 (April 1, 2025 to September 30, 2025)
Consolidated operating results Note: Figures in percentages denote the year-on-year change.
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
million yen
%
million yen
1,119
(2,122)
%
-
-
million yen
%
million yen
864
1,632
%
Interim Period of Fiscal Year Ending March 31, 2026
64,028
14.1
1,327
-
(47.0)
Interim Period of Fiscal Year Ended March 31, 2025
56,131
(12.8)
(2,385)
-
(33.6)
(Note) Comprehensive income Interim Period of Fiscal Year Ending March 31, 2026: ¥990 million (-49.2%)
Interim Period of Fiscal Year Ended March 31, 2025: ¥1,949 million (67.6%)
Profit per share
Diluted profit per
share
yen
yen
Interim Period of Fiscal Year Ending March 31, 2026
20.38
-
Interim Period of Fiscal Year Ended March 31, 2025
36.51
-
Consolidated financial position
Total assets
Net assets
Shareholders' equity ratio
As of September 30, 2025
As of March 31, 2025
million yen
108,396
105,960
million yen
50,551
51,112
%
45.6
47.3
(Reference) Shareholders' equity As of September 30, 2025: ¥49,462 million
As of March 31, 2025: ¥50,109 million
Status of dividend payments
Annual dividends
End of first quarter
End of second quarter
End of third quarter
End of year
Annual
Year ended March 31, 2025
Year ending March 31, 2026
yen
-
-
yen
25.00
25.00
yen
-
yen
25.00
yen
50.00
Year ending March 31, 2026 (forecast)
-
25.00
50.00
(Note) Revisions to dividend forecasts published most recently: None
Forecasts for consolidated operating results for the year ending March 31, 2026 (April 1, 2025 to March 31, 2026)
Note: Figures in percentages denote the year-on-year change.
Operating profit
Profit attributable to owners of parent
Profit per share
Full year
million yen
3,000
%
-
million yen
1,200
%
5.4
yen
28.26
(Note) Revisions to earnings forecasts published most recently: None
Notes
Significant changes in the scope of consolidation during the period: Yes Newly added: 1 company (Company name) S10 Entertainment & Media LLC Excluded: 1 company (Company name) Avex Technologies Inc.
Application of particular accounts procedures to the preparation of semi-annual consolidated financial statements:
None
Changes in accounting policies and changes in or restatement of accounting estimates
Changes in accounting policies in conjunction with revisions to accounting standards: None
Changes in accounting policies other than 1: None
Changes in accounting estimates: None
Restatement: None
Outstanding shares (ordinary shares)
Shares outstanding at end of term (including treasury stock)
As of September 30, 2025: 45,914,100 shares
As of March 31, 2025: 45,792,500 shares
Treasury stock at end of term
As of September 30, 2025: 3,410,698 shares
As of March 31, 2025: 3,410,680 shares
Average number of shares during term
Interim Period of Fiscal Year Ending March 31, 2026: 42,424,344 shares Interim Period of Fiscal Year Ended March 31, 2025: 44,700,254 shares
This financial summary is outside the scope of review by certified public accountant or audit corporation.
Explanation for forecasts of business results and other notes
The forecasts for business results and other forward-looking statements contained in this release are based on data and information that the Group has obtained so far and specific assumptions that the Group judges to be reasonable. Please note, therefore, that the actual results and others may greatly differ from the forecasts due to various factors.
Index for Supplementary Information
Overview of Operating Results, etc. 4
Overview of Consolidated Financial Results for the Interim Period Ended September 30, 2025 4
Overview of Financial Position for the Interim Period Ended September 30, 2025 5
Summary of Consolidated Financial Forecasts and Other Future Forecast Information 5
Semi-annual Consolidated Financial Statements and Major Notes 6
Semi-annual Consolidated Balance Sheets 6
Semi-annual Consolidated Statements of Income and
Semi-annual Consolidated Statements of Comprehensive Income 8
Notes Concerning Semi-annual Consolidated Financial Statements 10
(Notes on Going Concern Assumptions) 10
(Note Regarding Significant Changes in the Amount of Shareholders' Equity) 10
-
Overview of Operating Results, etc.
Overview of Consolidated Financial Results for the Interim Period Ended September 30, 2025
(Unit: million yen)
Interim period results
Fiscal year ended March 31, 2022
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2024
Fiscal year ended March 31, 2025
Fiscal year ending March 31, 2026
Net sales
46,304
54,060
64,355
56,131
64,028
Cost of sales
28,797
33,704
44,286
40,183
46,079
Gross profit
17,507
20,356
20,068
15,948
17,949
Gross profit margin
37.8%
37.7%
31.2%
28.4%
28.0%
Personnel expenses
5,646
6,539
6,752
6,220
6,088
Sales promotion and advertising expenses
2,989
3,429
3,325
3,182
3,538
General expenses
6,236
6,767
7,823
8,666
7,202
Total SG&A expenses
14,872
16,736
17,901
18,070
16,829
Operating profit (loss)
2,634
3,619
2,167
(2,122)
1,119
Operating margin
5.7%
6.7%
3.4%
-%
1.7%
In the entertainment industry, to which the Group belongs, the production of music software, including music videos, was up 9.6% year on year, to 159,187 million yen (January to September 2025; according to a survey by the Recording Industry Association of Japan). Sales of paid music downloads were up 5.5% year on year, to 65,014 million yen (January to June 2025; according to a survey by the Recording Industry Association of Japan). In the video-related market, sales of video software decreased 18.6% year on year, to 55,552 million yen (January to September 2025; according to a survey by the Japan Video Software Association).
In this business environment, the Group worked to realize the Medium-Term Management Plan "avex vision 2027" by making aggressive investments, with emphasis on "seeking out and cultivating new talent" as the starting point of value creation and by building a structure that will allow it to aim for long-term growth, while at the same time implementing strategic initiatives for overseas markets. In each segment, progress was made in IP discovery, cultivation, development and acquisition with a global perspective, expanding the IP portfolio, and building a global value chain to maximize the value of IP. We have already steadily strengthening our business foundations in overseas markets. In our mainstay businesses such as LIVE and LABEL, we worked to maximize the value of existing IP and strengthened collaboration with partner companies.
In terms of business performance for the interim period of the fiscal year under review, net sales were 64,028 million yen (up 14.1% year on year) mainly due to an increase in the number of major live performances in the Music Business and strong overseas distribution of animation works in the Anime & Visual Content Business, and operating profit was 1,119 million yen (operating loss of 2,122 million yen in the same period of the previous year) chiefly due to a decrease in the provision for allowance for doubtful accounts and a decrease in selling, general and administrative expenses, mainly as a result of review of the execution of expenses. Profit attributable to owners of parent was 864 million yen (down 47.0% year on year) chiefly due to the recording of extraordinary income from the transfer of shares in subsidiaries in the interim period of the previous fiscal year.
Overview of Financial Position for the Interim Period Ended September 30, 2025
Total assets at the end of the interim period under review increased 2,435 million yen, to 108,396 million yen from the end of the previous consolidated fiscal year. This was chiefly attributable to increases of 2,670 million yen in goodwill, 2,217 million yen in other current assets and 1,832 million yen in notes and accounts receivable - trade respectively, which more than offset a decline of 4,693 million yen in cash and deposits.
Liabilities increased by 2,996 million yen from the end of the previous consolidated fiscal year, to 57,844 million yen. This was primarily due to an increase of 8,632 million yen in other current liabilities, despite decreases of 3,066 million yen in accounts payable - other and 1,758 million yen in income taxes payable.
Net assets decreased 561 million yen from the end of the previous consolidated fiscal year, to 50,551 million yen. This was chiefly attributable to a decline of 585 million yen in capital surplus.
Summary of Consolidated Financial Forecasts and Other Future Forecast Information
With respect to the summary of consolidated financial forecasts for the fiscal year ending March 31, 2026, the financial forecasts presented in the "Consolidated Financial Summary for the Year Ended March 31, 2025" announced on May 8, 2025 remain unchanged.
If any revision to the financial forecasts becomes necessary in the future, the Company will promptly disclose it.
- Semi-annual Consolidated Financial Statements and Major Notes
Semi-annual Consolidated Balance Sheets
(Unit: million yen)
As of March 31, 2025 As of September 30, 2025
Assets
Current assets
Cash and deposits
35,690
30,996
Notes and accounts receivable - trade
22,952
24,784
Merchandise and finished goods
910
1,750
Work in process
3,683
4,164
Raw materials and supplies
315
431
Other
14,474
16,692
Allowance for doubtful accounts
(253)
(119)
Total current assets
77,774
78,700
Non-current assets
Property, plant and equipment Buildings and structures, net
4,214
4,927
Land
2,690
2,965
Other, net
1,595
1,703
Total property, plant and equipment
8,500
9,595
Intangible assets
Goodwill
22
2,693
Other
2,637
2,768
Total intangible assets
2,660
5,461
Investments and other assets
Investment securities
9,839
7,642
Retirement benefit asset
42
63
Other
8,767
8,745
Allowance for doubtful accounts
(1,624)
(1,814)
Total investments and other assets
17,025
14,637
Total non-current assets
28,186
29,695
Total assets
105,960
108,396
Liabilities
Current liabilities
(Unit: million yen) As of March 31, 2025 As of September 30, 2025
Notes and accounts payable - trade
2,972
2,603
Current portion of long-term borrowings
3
1
Accounts payable - other
29,511
26,444
Income taxes payable
2,105
347
Refund liabilities
1,323
1,276
Provision for bonuses
310
188
Other
16,607
25,240
Total current liabilities
52,834
56,101
Non-current liabilities
Other
2,013
1,743
Total non-current liabilities
2,013
1,743
Total liabilities
54,848
57,844
Net assets
Shareholders' equity
Share capital
4,755
4,833
Capital surplus
5,649
5,063
Retained earnings
43,677
43,491
Treasury shares
(4,933)
(4,933)
Total shareholders' equity
49,149
48,455
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
700
978
Foreign currency translation adjustment
(49)
(131)
Remeasurements of defined benefit plans
308
159
Total of accumulated other comprehensive income
960
1,006
Non-controlling interests
1,003
1,089
Total net assets
51,112
50,551
Total liabilities and net assets
105,960
108,396
Semi-annual Consolidated Statements of Income and Semi-annual Consolidated Statements of Comprehensive Income Semi-annual Consolidated Statements of Income
(Unit: million yen)
For the interim period ended
For the interim period ended
September 30, 2024
September 30, 2025
Net sales
56,131
64,028
Cost of sales
40,183
46,079
Gross profit
15,948
17,949
Selling, general and administrative expenses
Advertising expenses
2,460
2,687
Promotion expenses
722
851
Provision of allowance for doubtful accounts
715
(37)
Employees' salaries and bonuses
4,175
4,130
Provision for bonuses
42
178
Retirement benefit expenses
106
(21)
Other
9,847
9,040
Total selling, general and administrative expenses
18,070
16,829
Operating profit (loss)
(2,122)
1,119
Non-operating income
Interest income
12
58
Dividend income
7
6
Share of profit of entities accounted for using equity method
22
213
Gain on valuation of investment securities
2
-
Other
33
41
Total non-operating income
77
320
Non-operating expenses
Interest expenses
1
1
Foreign exchange losses
252
62
Commission fee
29
29
Other
57
19
Total non-operating expenses
340
112
Ordinary profit (loss)
(2,385)
1,327
Extraordinary income
Gain on sale of shares of subsidiaries
4,548
-
Gain on change in equity
1,965
-
Total extraordinary income
6,514
-
Extraordinary losses
Impairment loss
188
-
Loss on disaster
159
-
Loss on liquidation of business
-
48
Loss on retirement of non-current assets
10
19
Other
216
-
Total extraordinary losses
574
68
Profit before income taxes
3,555
1,258
Income taxes - current
1,739
335
Income taxes - deferred
41
(22)
Total income taxes
1,781
313
Profit
1,773
945
Profit attributable to non-controlling interests
141
80
Profit attributable to owners of parent
1,632
864
Semi-annual Consolidated Statements of Comprehensive Income
For the interim period ended
(Unit: million yen) For the interim period ended
September 30, 2024
September 30, 2025
Profit
1,773
945
Other comprehensive income
Valuation difference on available-for-sale securities
23
278
Foreign currency translation adjustment
119
(20)
Remeasurements of defined benefit plans, net of tax
(45)
(139)
Share of other comprehensive income of associates accounted for using equity method
77
(72)
Total other comprehensive income
175
45
Comprehensive income
1,949
990
(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent
1,808
911
Comprehensive income attributable to non-controlling
141
79
interests
Notes Concerning Semi-annual Consolidated Financial Statements (Notes on Going Concern Assumptions)
Not applicable
(Note Regarding Significant Changes in the Amount of Shareholders' Equity) Not applicable