■Future outlook

1. Earnings Forecast for the Fiscal Year Ending 2024/8

Regarding the consolidated earnings forecast for the 2024/8 fiscal year of Nippon BS Broadcasting ＜9414＞, sales are expected to increase sales and decrease in profits, with sales of 12,600 million yen (up 1.5% from the previous fiscal year), operating income of 1,910 million yen (down 5.2% from the same period), and net income attributable to parent company shareholders of 1,318 million yen (down 4.9% from the same period). Meanwhile, earnings forecasts for sales categories (individual) were slightly revised. Compared to the initial forecast for the fiscal year, spot revenue was revised to decrease 5.1% compared to the previous fiscal year due to the results of sales activities up to the 2nd quarter, although there is an impact of mail-order spots where a drop from the COVID-19 pandemic is expected to fall due to the results of sales activities up to the 2nd quarter. Time revenue remained almost unchanged, with a 3.1% increase, and other business income declined from a 20.1% increase to a 16.1% increase. This is thought to be because sales up to the 2nd quarter decreased compared to the plan, but even so, total sales are planned to exceed the previous fiscal year. For each profit, profit is expected to decrease by a few percent for the full year. It is due to amortization burdens due to studio equipment updates carried out in the previous fiscal year, and there is no change from the forecast when financial results for the fiscal year ending 2023/8 were announced.

As for profit plans, there are places where amortization burdens for studio equipment will occur throughout the year, production of specials, collaborative programs, etc. with other stations, and investment in non-broadcast fields such as anime/distribution businesses, etc. and content development that can be deployed in multiple ways on a par with the previous fiscal year. However, in the 2023/8 fiscal year, the animated film “That Time I Got Reincarnated as a Slime the Movie” the company invested in exceeded 1.4 billion yen in box office revenue, and there is also a track record that sales and distribution etc. of invested content led to an increase in sales. However, the company generally tends to show results exceeding plans, and each profit for the 2023/8 fiscal year also surpassed the plan by about 10%. We anticipate a decline in profit, but we believe this is just a highly accurate plan for the lowest line.

As the company, in addition to continuing efforts aimed at expanding profits by developing new customers, increasing transactions with existing customers, selling programs produced in-house and utilizing distribution platforms, etc., the company aims to achieve full-year plans by controlling appropriate costs and expenses.

(Author: FISCO Analyst Tomokazu Murase)