■Performance trends of KeyHolder ＜4712＞

3. Earnings forecast for the fiscal year ending 2024/12

Regarding the earnings forecast for the fiscal year ending 2024/12, the company expects sales revenue of 32,000 million yen (up 16.3% from the previous fiscal year), operating income of 2,400 million yen (up 22.1% from the same period), and net income attributable to owners of the parent company of 2,200 million yen (up 4.0% from the same period). Note, the progress rate for the second quarter was weak, but the full-year earnings forecast has not changed from the initial forecast. The reason is that trends at the time of making Topos Enterprise a subsidiary scheduled for 2024/10 and the impact on financial results due to accounting processing are undetermined, but it should have been known from the beginning that there were differences related to the box office that was strong, including the graduation concert at Nogizaka46 the previous year, and that advance investment through subsidiaries would increase, and in that respect, earnings forecasts at the beginning of the fiscal year may have been slightly too bullish. In a sense, it can be said that it is a landing ground, but the idea is to catch up with earnings forecasts through the second half measures described below.

The live entertainment division of the general entertainment business will continue to smoothly operate existing IPs and expand new IPs from the 3rd quarter onwards through production operations such as the activities of affiliated artists. Among them, Nogizaka46 held a total of 7 performances in the 3 cities of Osaka, Nagoya, and Tokyo for the “Midsummer Nationwide Tour 2024” in the 3rd quarter. Travel costs and setup costs can be reduced by reducing the number of performance venues, and since ticket prices have been revised, profitability improvements can be expected, and it is a policy to recover what was not achieved in the 2nd quarter. In addition to holding daily theater performances, SKE48 held the “SUMMER TOUR 2024” from the 3rd quarter, performed 14 performances in 6 cities, and also performed the “8th Anniversary Concert Pachi Pachi Pachi by 8 SKE48 8th Year Students” by 8th graders. The 33rd single “Confession Heart Rate” is also scheduled to be released in the 4th quarter.

Novelbright has continued “Novelbright LIVE TOUR 2024 ~ CIRCUS ~,” which will go around 27 performances in 25 cities nationwide since the first half. “Novelbright LIVE TOUR 2024 ~ CIRCUS ~ FINAL” will be held on 10/5 and 6, and a 0.03 million person performance is scheduled at Himeji Castle, the symbol of Himeji City, the largest ever for Novelbright. As for other talents, in addition to Wakatsuki Yumi, Ikoma Rina, Oguri Yui, Furuhata Nawa, and Ego Yuna, Tani Marika, who began solo activities as voice actors, Takahata Yuki and Kitano Ruka who graduated from SKE48 and started solo activities, and Doi Remy Anri, who took office as the main supporter of “Paris Olympics 2024” on Fuji TV, etc., the development of newcomers is progressing smoothly, and the policy is to continue to increase the number of affiliated artists and talents and expand their range of activities. In the digital content division, the idea is to promote group synergy utilizing AI technology in terms of IP content and video production while focusing on the existing smartphone application management business at 10ANTZ where system development has progressed.

In the video production business, it is the main variety program, and in addition to the 16 regular programs, there is a new “Let's hide... that! “(TV TOKYO)” has been made regular since the special edition, and they are steadily building up results by continuing to utilize their planning and production capabilities. Also, the Netflix comedy series “Talk Survivor!” has been distributed in over 190 countries around the world He continues to be involved as a production producer in season 3 of “~Dramas with Interesting Talk~ (Netflix)”. In drama production, TV Tokyo “I Can Hear Hidamari,” produced by a director belonging to UNITED PRODUCTIONS, will begin broadcasting in July, and “Young Strangers,” which is the commercial feature-length debut film directed by Takuya Uchiyama, is scheduled to be shown nationwide in October. In the field of new business, TOKYO ROCK STUDIO will steadily build up a track record of back office operations at production sites for the production announcement of the film “WHAT DIVIDES US,” and the idea is to actively lobby to acquire large-scale overseas projects. Thus, in the second half of the fiscal year, we aim to strengthen internal systems and budget management systems in line with business conditions, and by utilizing our know-how in video production and relationships with many production companies, broadcasting stations, etc. cultivated through temporary staffing, and stably and continuously handle high-quality production projects at home and abroad, thereby strengthening the profit structure.

The digital advertising division of the advertising agency business will continue to handle video advertisements such as YouTube, etc., and will strengthen the internet advertisement business and internet media business on digital advertising platforms where use is expanding as an advertising medium. Also, in addition to accepting orders for advertising projects by utilizing group synergies such as 10ANTZ and existing IP businesses, the idea is to expand the business in earnest into new areas such as real estate and finance. In the advertising agency division, it is planned to continue large-scale advertising projects such as major securities companies that were carried out in the 2023/12 fiscal year, and continue to acquire excellent projects centered around 7-Eleven Japan. Also, the idol group “The Blue Sky I Wanted to See”, which celebrated its 1st anniversary in June, will perform “Natsuka ~ NATSUGASUMI ~” which will be the first stage in July, and in October, the same group's “Sky Blue Splashes” will be used as the theme song for the theatrical animation “Ganba Teki Kimeshoi,” which is scheduled to be shown nationwide. Regarding the planning, proposal, and operation of various events utilizing existing IP within the group, it is planned to increase efforts with various companies through live performances at commercial facilities and linked planning with SNS. In this way, the idea is to continue tie-ups with major companies, sports teams, famous artists, etc., and expand the business scale by being involved in various projects regardless of size through know-how that can accept client requests all at once, from event planning/proposal/development to monetization of product plans, aggressive sales strategies that make use of the group's strengths, and strengthening the ability to acquire new projects through personnel increases.

(Written by FISCO Visiting Analyst Miyata Hitomitsu)