TV Asahi Holdings (9409) Q4 2023 earnings summary

Executive summary

• FY22 revenue rose 2.1% to ¥304,566m, while operating profit fell 32.3% to ¥14,503m and net income fell 20.9% to ¥16,603m amid a sluggish TV advertising market.

• Stronger internet, shopping and other-business sales partly offset lower TV broadcasting revenue; growth in events, music publishing and film investments supported other businesses.

Financial highlights

• Revenue: ¥304,566m, up 2.1% YoY; operating profit: ¥14,503m, down 32.3%; ordinary profit: ¥23,157m, down 12.4%.

• Net income attributable to owners of the parent was ¥16,603m, down 20.9% YoY.

• TV production costs rose 3.5% to ¥77,323m, including a 10.6% increase in H2, reflecting programming and major sports-event content.

Outlook and guidance

• FY23 revenue forecast ¥313,000m, up 2.8%; operating profit ¥15,000m, up 3.4%; ordinary profit ¥20,000m, down 13.6%; net income ¥15,000m, down 9.7%.

• FY23 segment forecasts: TV broadcasting revenue ¥230,900m, internet ¥27,100m, shopping ¥21,100m and other ¥33,900m; internet and shopping operating profit forecast to rise 28.3% and 153.7%, respectively.

• FY25 targets: revenue ¥330,000m, operating profit ¥20,000m, ordinary profit ¥25,000m and net income ¥20,000m; strategic investment capacity of ¥50,000m.

• Tokyo Dream Park construction was planned to start in 2023, with completion targeted for 2025.