Report

Quarterly Transition by Business Segment: Japan

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Summary

The quarterly transition data for Japan’s business segments in FY2024 and FY2025 reveals a mixed performance across media, internet advertising, gaming, and investment development. Total sales rose from ¥838 billion in FY2024 to ¥802 billion in FY2025, driven primarily by the internet advertising segment, which recorded ¥436 billion in 2024 and ¥117 billion in 2025. The media & IP business saw a decline from ¥200 billion to ¥55 billion, while the gaming segment fell from ¥196 billion to ¥38 billion. Investment development remained modest, moving from ¥6 billion to ¥465 million. Operating profit mirrored sales trends. Internet advertising generated a robust ¥23 billion in 2024 and ¥6 billion in 2025, maintaining a healthy operating margin of about 5.3%. Gaming delivered the highest margin in FY2024 at 15.8% but dropped to 8.8% in FY2025, reflecting volatility in that segment. Media & IP suffered losses throughout both years, with a cumulative loss of ¥755 million in 2024 and a smaller loss of ¥1.5 billion in 2025. Investment development swung from modest gains to a loss of ¥1.063 billion in 2024, before recovering slightly to ¥430 million in 2025. Adjustments and special incentives reduced overall profitability, with a total adjustment of ¥35.9 billion in 2024 and ¥8.3 billion in 2025, and a one‑time special incentive of ¥2.6 billion applied in FY2025. Excluding these items, operating profit margins remained positive for internet advertising and gaming but negative for media & IP and investment development. The data underscores the concentration of revenue and profit in digital advertising, while traditional media and gaming face declining profitability.

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Quarterly Transition by Business Segment: Japan

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