For the first three quarters of fiscal year ending March 2026 (April-December), overall sales decreased by 1.7%, operating profit by 59.7%, ordinary profit by 47.1%, and net profit by 70.0% compared to the previous year, largely due to declines in publishing/IP creation, anime/live-action, and games.
02
The Publishing/IP Creation segment's operating profit decreased by 90.2% year-over-year, primarily due to a change in revenue recognition timing for electronic books (approx. -2 billion JPY), reduced marginal profit from smaller per-title sales despite increased new IP, and higher personnel and investment costs.
03
The Anime/Live-Action segment experienced a 16.6% decrease in sales and a significant drop in operating profit year-over-year, mainly because the previous year benefited from major anime titles and extensive secondary usage of live-action films, which were not replicated this period.
04
The Education/EdTech segment saw strong growth, with sales increasing by 13.4% and operating profit by 10.9% year-over-year, driven by increased student numbers at Vantan and N High School Group/ZEN University.
05
Despite overall declines, the Game segment saw strong sales from "ELDEN RING NIGHTREIGN" and its DLC, though it still experienced a year-over-year decrease compared to the previous period's significant contributions from "ELDEN RING" DLC and the main game.
06
The company is implementing fundamental business reforms in the Publishing/IP Creation segment, including price revisions, media mix strategies, and optimizing advertising/sales promotions, expecting improved performance in Q4 and beyond.
Insights
01
For the first three quarters of fiscal year ending March 2026 (April-December), overall sales decreased by 1.7%, operating profit by 59.7%, ordinary profit by 47.1%, and net profit by 70.0% compared to the previous year, largely due to declines in publishing/IP creation, anime/live-action, and games.
02
The Publishing/IP Creation segment's operating profit decreased by 90.2% year-over-year, primarily due to a change in revenue recognition timing for electronic books (approx. -2 billion JPY), reduced marginal profit from smaller per-title sales despite increased new IP, and higher personnel and investment costs.
03
The Anime/Live-Action segment experienced a 16.6% decrease in sales and a significant drop in operating profit year-over-year, mainly because the previous year benefited from major anime titles and extensive secondary usage of live-action films, which were not replicated this period.
04
The Education/EdTech segment saw strong growth, with sales increasing by 13.4% and operating profit by 10.9% year-over-year, driven by increased student numbers at Vantan and N High School Group/ZEN University.
05
Despite overall declines, the Game segment saw strong sales from "ELDEN RING NIGHTREIGN" and its DLC, though it still experienced a year-over-year decrease compared to the previous period's significant contributions from "ELDEN RING" DLC and the main game.
06
The company is implementing fundamental business reforms in the Publishing/IP Creation segment, including price revisions, media mix strategies, and optimizing advertising/sales promotions, expecting improved performance in Q4 and beyond.