Toho (9602) Q3 2025 earnings summary

Executive summary

• Achieved record-high 3Q FY2/26 revenue of ¥281.4B (+20.2% YoY) and operating profit of ¥60.1B (+13.8% YoY), driven by major film hits and strong theater attendance.

• Net income (parent) reached ¥46.6B (+36.5% YoY), with comprehensive income up 66.1% YoY to ¥57.7B, aided by sales of strategic shareholdings.

• 3Q profits exceeded forecasts, but the full-year forecast remains unchanged due to a soft 4Q outlook for the Film business.

• Announced a 1-for-5 stock split effective March 1, 2026, changes to the shareholder benefit program, and a year-end dividend forecast increase by ¥20 to ¥105 per share.

• Provision for loss on Anti-Monopoly Act recorded as an extraordinary loss due to an on-site inspection at a subsidiary.

Financial highlights

• 3Q YTD operating revenue: ¥281.4B (+20.2% YoY); operating profit: ¥60.1B (+13.8% YoY); ordinary profit: ¥60.9B (+18.1% YoY); net income: ¥46.6B (+36.5% YoY).

• Gross profit for the period was ¥125.6B, up from ¥109.2B YoY; basic EPS increased to ¥274.75.

• Total assets grew to ¥705.7B, net assets to ¥536.5B, with an equity ratio of 73.7%.

• Cash flows from operating activities: ¥53.1B; investing activities: ¥2.2B; financing activities: -¥16.2B; cash and cash equivalents at period end: ¥115.6B.

• Record-high 2025 domestic box office revenue at ¥160.5B, surpassing the previous record of ¥105.5B in 2023.

Outlook and guidance

• Full-year forecast unchanged: operating revenue ¥360.0B (+15.0% YoY), operating profit ¥65.0B (+0.5% YoY), net income ¥47.5B (+9.6% YoY), and basic EPS ¥280.77, due to expected soft 4Q in Film business.

• Annual dividend raised to ¥105 per share, with a payout ratio target of 35% or more and flexible share buybacks under the Mid-Term Plan 2028.

• Strong film and anime lineup for FY2/27, including global releases of “GODZILLA MINUS ZERO” and “The Apothecary Diaries Theatrical Film.”