Q1 FY2024 Financial Results Materials1.1MB

Aug 9, 2024 at 5:54 AM UTC · Issued by Tv Tokyo Holdings Corporation

Supplementary Material for First Quarter Financial Results for the Fiscal Year Ending March 31, 2025

August 1, 2024

Securities code: 9413

TV TOKYO Holdings Corporation Summary of FY25/3 1Q

＜Revenue from broadcasting business recovered. Anime continued to be strong. Consolidated net sales increased by 2.4%, while operating income increased by 5.3%.＞

・TV TOKYO's broadcasting revenue increased for both time-slot revenue and spot revenue. BS TV TOKYO performed well, with operating income from terrestrial and BS broadcasting (consolidated) increasing 4.6 times.

・For anime and streaming (consolidated), net sales increased by 3.6%. Anime net sales for TV TOKYO (on a non-consolidated basis) were especially favorable, recording a 9.1% increase. Operating income of anime and streaming (consolidated) decreased due to expenses incurred as upfront investments for future revenue growth.

Major anime and streaming contents

Anime: Commercialization, streaming, and game adaptations of our mainstay contents, "NARUTO" and "BORUTO," were strong globally. Revenue from distribution of the "SPY x FAMILY" movie contributed to the performance. Royalty revenue from "Pokémon" grew in Japan and overseas.

Streaming business: Domestic streaming of new dramas such as "95" , "At

25:00, in Akasaka" and DVD sales of the "What Did You Eat Yesterday?" series

were strong.

＜Shareholder returns＞

・In FY25/3, we are repurchasing a total of 1.2 billion yen (maximum) of our own stock (announced on May 15, 2024), and the total payout ratio is expected to be between 45 and 51%.

（Billion yen）

Anime business continued to grow

	5.46		5.17
		4.74
4.27

3.23

FY21 1Q

FY22 1Q

FY23 1Q

FY24 1Q

FY25 1Q

Net sales of anime

(for TV TOKYO on a non-consolidated basis)

Consolidated Overview of Profit and Loss by Segment

				(Million yen)
	FY24/3	FY25/3	YoY change
Net sales	1Q	1Q	Amount	%
Terrestrial and BS broadcasting	23,018	23,232	214	0.9%
Anime and streaming	9,617	9,961	343	3.6%
Shopping and other	3,761	3,955	194	5.2%
Total consolidated net sales	34,928	35,771	843	2.4%
Expenses
Terrestrial and BS broadcasting	22,841	22,419	△ 422	△ 1.8%
Anime and streaming	8,469	9,517	1,047	12.4%
Shopping and other	3,768	3,800	31	0.8%
Total consolidated operating expenses	33,842	34,628	785	2.3%
Operating income
Terrestrial and BS broadcasting	176	813	636	360.7%
Anime and streaming	1,148	444	△ 703	△ 61.3%
Shopping and other	△ 7	155	162	-
Total consolidated operating income	1,085	1,142	57	5.3%
Consolidated ordinary income	1,574	1,368	△ 205	△ 13.1%
Profit (loss) attributable to owners of parent	1,881	896	△ 984	△ 52.4%

Consolidated Overview of Balance Sheets

Consolidated Overview of
	Current assets
	Non-current assets
	Property, plant and equipment
Assets	Intangible assets
Investments and other assets
	Total assets

Balance Sheets
FY24/3	FY25/3	Changes
year-end	1Q-end

88,758	81,849	△6,909
58,335	57,379	△956
24,307	23,961	△345
5,651	6,087	435
28,376	27,330	△1,046
147,094	139,228	△7,866

Net assets Liabilities

			(Million yen)
	FY24/3	FY25/3	Changes
	year-end	1Q-end

Current liabilities	43,606	37,888	△5,717
Non-current liabilities	4,219	3,979	△240
Total liabilities	47,825	41,868	△5,957
Shareholders' equity	94,086	92,864	△1,222
Valuation and translation adjustments	4,988	4,305	△683
Non-controlling interests	193	190	△3
Total net assets	99,268	97,360	△1,908
Total liabilities and net assets	147,094	139,228	△7,866
Note: Net assets per share =3,603.73yen

Non-consolidated/TV TOKYO Financial Position	(Million yen)		Non-consolidated/BS TV TOKYO Financial Position	(Million yen)
	FY24/3	FY25/3	Changes			FY24/3	FY25/3	Changes
	year-end	1Q-end			year-end	1Q-end


Total assets	83,603	79,379	△ 4,224		Total assets	21,677	20,919	△ 757

Total liabilities	34,335	35,277	941		Total liabilities	3,710	3,271	△ 439

Total net assets	49,268	44,101	△ 5,166		Total net assets	17,967	17,648	△ 318

Non-consolidated		Overview of TV TOKYO Profit and Loss
								(Million yen)

					FY24/3	FY25/3	YoY change
					1Q	1Q	Amount	%
	Net sales			25,583	26,325	741	2.9%
	Operating expenses
		25,087	25,739	652	2.6%
				Operating income
				496	585	88	17.9%
				Ordinary income	2,373	1,849	△ 523	△ 22.1%
				Profit before income taxes	3,432	1,849	△ 1,582	△ 46.1%
	Overview of broadcasting businesses

	Broadcasting businesses	TIME（T）	10,508	10,585	77	0.7%
	sales (main items)		SPOT（S）	6,198	6,581	383	6.2%
				T+S total	16,707	17,167	460	2.8%
				Program sales	1,069	1,049	△ 20	△ 1.9%
			Broadcasting businesses total sales	18,401	18,723	321	1.7%

	Broadcasting businesses expenses	14,953	14,705	△ 248	△ 1.7%
	Of which, broadcasting contents production expenses	8,337	7,985	△ 351	△ 4.2%
				Broadcasting businesses income

				3,447	4,017	570	16.5%

Overview of rights businesses

Rights businesses sales	Anime
	Streaming business
	Events
	Rights businesses total sales
Rights businesses expenses
	Rights businesses income

4,740	5,170	429	9.1%
2,192	2,082	△ 109	△ 5.0%
249	230	△ 19	△ 7.7%
7,182	7,483	300	4.2%

3,705	4,557	852	23.0%


3,477	2,925	△ 551	△ 15.9%

Expenses related to contents production for terrestrial broadcasting, which were previously presented as "program production expenses" are presented as "broadcasting contents production expenses".

Non-consolidated TV TOKYO Broadcasting Businesses

Changes in SPOT Percentage

（％）						Note: Before settlement of accounts
								Area
10.0
								TX

5.0									5.8
	2.5

	-1.5							-1.8	-0.1
0.0
	1.7

-5.0			-5.9	-5.9			-4.7
				-7.5
	-5.6				-9.8		-5.1
		-6.1	-5.5

-10.0					-7.9

					-12.3	-10.9
-15.0
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q

		FY23/3			FY24/3		FY25/3

Changes in Share of SPOT Area

（％）					Note: Before settlement of accounts

8.00
7.50	7.31	7.19
	7.17		7.22
						6.99
7.00						6.95	6.93
6.96


6.50					6.60

6.00
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q
	FY23/3			FY24/3		FY25/3

Monthly results of Time and Spot

(Million yen)

2024

2025

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

TIME

3,511

3,483

3,596

SPOT

2,383

2,100

2,065

Total

5,894

5,583

5,661

Note: Before settlement of accounts

Non-consolidated TV TOKYO Broadcasting Businesses

1Q of the Fiscal Year Ending March 31, 2025 (Accounting Period: April to June) Ranking by SPOT Business Type

Business type

Restaurants/services Beverages/luxury foods Information/telecoms Financial/insurance Foods Transportation/leisure Chemicals/pharmaceuticals Distribution/retail Automobiles/related items

Hobbies/sports Cosmetics/toiletries

Household appliances/AV/precision devices Real estate/residential facilities Household furnishings and articles Energy/materials/machinery

Public sector/associations Fashion/accessories Education/medical services Publishing

1Q	Difference from	YoY
composition	the previous year's	change
ratio	composition ratio	in sales
12.9%	△1.3pt	△ 4.2%
12.4%	△0.7pt	0.1%
9.5%	△0.2pt	3.6%
9.4%	△0.2pt	4.0%
8.7%	0.7pt	14.9%
8.6%	1.0pt	19.2%
6.7%	0.6pt	17.0%
6.6%	△1.5pt	△ 13.6%
5.1%	1.9pt	71.0%
4.4%	△1.2pt	△ 17.1%
3.6%	0.9pt	43.1%
3.3%	△0.6pt	△ 9.5%
2.5%	0.8pt	57.8%
2.4%	1.0pt	84.0%
1.6%	0.3pt	29.3%
0.7%	△0.8pt	△ 50.3%
0.7%	△0.2pt	△ 21.9%
0.7%	△0.5pt	△ 36.7%
0.2%	△0.1pt	△ 31.9%

Non-consolidated BS TV TOKYO Broadcasting Businesses

				(Million yen)
	FY24/3	FY25/3	YoY change
	1Q	1Q	Amount	%
Net sales	3,801	3,832	30	0.8%
TIME	2,410	2,406	△ 4	△ 0.2%
SPOT	1,217	1,259	42	3.5%
Others	173	165	△ 7	△ 4.2%
Operating expenses	3,268	3,269	0	0.0%
Cost of sales,	1,508	1,539	30	2.0%
Program production

Other expenses	792	748	△ 43	△ 5.5%
Indirect expenses	967	981	13	1.4%
Operating income	532	563	30	5.8%

Consolidated Shareholder Returns

Dividend policy

The Company recognizes shareholder returns as one of its important management issues and always works on stable and continuous dividend payments based on sharing the fruits of growth with stakeholders in a balanced manner. In addition to stable annual dividend of 20 yen per share as a minimum, the Company aims for dividend payout ratio of 30% on a consolidated basis as dividends linked to business results, and aims to increase this to 35% over the medium- to long-term.

Acquisition of treasury shares

Acquisition of treasury shares will be considered in accordance with laws and regulations specific to the broadcasting industry while taking into consideration tradable share ratio and other factors.

ROE

With the recognition that it is important to steadily increase profit to improve ROE, the Company aims to achieve ROE (return on equity) of 8% in the latter half of the
2020s by undertaking profit structure reforms to expand segments with high growth potential.	80yen
		80yen	（million yen）
		e dividend of	80yen
		(Commemorativ
		10 yen)
	60yen
Dividend per share:	40yen
40 yen

1,669

2,186

2,165

2,140

1,130

1,125

929

973

1,200

683

485

(maximum)*

FY20/3

FY21/3

FY22/3

FY23/3

FY24/3

FY25/3 forecasts

Payout ratio

43.7％

43.9％

27.9％

32.8％

32.2％

33.3%

Total payout ratio

43.7％

62.6％

39.1％

46.3％

46.6％

Approximately 45%-51%

Dividend

Treasury shares acquired

*Acquisition status: As of June 30, 2024 (acquisition in progress)

Total payout ratio = (total amount of dividends + total amount of treasury shares acquired)/profit attributable to owners of parent

Acquisition price: 359.35 million yen (maximum: 1.2 billion yen)

Number of shares acquired: 100,100 shares (maximum: 300,000 shares)

Acquisition period: May 16, 2024 to November 30, 2024

Consolidated	Full-Year Financial Results Forecasts
	for the Fiscal Year Ending March 31, 2025

【Consolidated full-year financial results forecasts for the fiscal year ending March 31, 2025 remain unchanged from the previous forecasts (announced on May 15, 2024).】

					(Million yen)
		FY24/3	FY25/3	Comparison with FY24/3 results
Net sales	results	forecasts	Amount	%
Terrestrial and BS broadcasting
94,773	97,255	2,481	2.6%
Anime and streaming	44,534	48,039	3,504	7.9%
Shopping and other	15,905	17,390	1,485	9.3%
Total consolidated net sales
	148,587	155,000	6,412	4.3%
Expenses
Terrestrial and BS broadcasting
91,098	94,314	3,215	3.5%
Anime and streaming	38,572	41,708	3,135	8.1%
Shopping and other	15,605	16,576	971	6.2%
Total consolidated operating expenses
	139,750	146,000	6,249	4.5%
Operating income
Terrestrial and BS broadcasting
3,675	2,941	△ 733	△ 20.0%
Anime and streaming	5,962	6,331	368	6.2%
Shopping and other	299	813	514	171.5%
Total consolidated operating income
	8,836	9,000	163	1.8%
Consolidated ordinary income	9,599	9,610	10	0.1%
Profit (loss) attributable to owners of parent	6,736	6,500	△ 236	△ 3.5%

Note: Explanation of the proper use of financial results forecast and other notes

The financial results forecast and other forward-looking statements in this material are based on information that is currently available to the Company and certain assumptions that are deemed reasonable by the company.

A range of factors including trends in economic activity could cause actual business results to differ significantly.