FY2025 3rd Quarter Consolidated Financial Summary (Three months ended December 31, 2025)

Performance Overview

For continuing operations in the 3rd quarter of FY2025, net sales amounted to 3,713.7 billion yen (YoY +1%) and operating income was 515.0 billion yen (+22%), showing increases in both revenue and profit. Operating margin improved by 2.4 points YoY to 13.9%. Key drivers of profit growth included an increase in the I&SS segment profits, realization of unrealized gains (43.9 billion yen) associated with the spin-off, as well as higher profits from corporate and inter-segment transaction eliminations. Conversely, deteriorations in financial income and foreign exchange losses partially offset these gains. By segment, Game & Network Services (G&NS) and Music segments posted revenue and profit growth, the Pictures segment recorded declines in both, the ET&S segment experienced revenue and profit decrease, and the I&SS segment achieved substantial revenue and profit growth.

FY2025 Earnings Forecast and Shareholder Returns

The full-year FY2025 earnings forecast for continuing operations has been revised upward with net sales projected at 12,300 billion yen (+300 billion yen, +3% versus November forecast) and operating income at 1,540 billion yen (+110 billion yen, +8%). Profit before tax and net income attributable to owners of the parent have also been revised upward. Segment-wise, growth in revenue and profit in G&NS, Music, and I&SS are main contributors to the forecast upgrades. Positive foreign exchange effects are also expected. The dividend forecast is 25 yen per share annually (+5 yen versus the previous year), reflecting enhanced shareholder returns.