Supplementary Materials for Q3 Financial Results for Fiscal Year Ending March 2026 (FY2025)

Overview of Financial Results

For the third quarter of the fiscal year ending March 2026, consolidated net sales were 124.3 billion yen, an 8.7% increase year-over-year, and operating income grew sharply to 11.4 billion yen, a 97.8% increase YoY, both reaching record highs. The terrestrial and BS broadcasting business was driven by spot revenue, increasing 7.6%, while the anime and streaming business saw a 27.2% increase in net sales supported by strong overseas program sales and game adaptations. The streaming business also experienced growth due to advertising revenue from new drama releases and sales to streaming platforms.

Segment Performance and Financial Condition

Net sales in the terrestrial and BS broadcasting business totaled 77.7 billion yen (up 5.8% YoY), with operating income of 6.0 billion yen (up 84.4% YoY). The anime and streaming business achieved net sales of 39.2 billion yen (up 19.2% YoY) and operating income of 5.8 billion yen (up 114.5% YoY), showing significant growth. The shopping and other businesses recorded net sales of 12.7 billion yen (down 2.5% YoY) and operating income of 380 million yen (down 40.3% YoY). On the balance sheet, total assets increased to 157.6 billion yen and net assets rose to 108.2 billion yen.

Shareholder Returns and Dividend Policy

Regarding shareholder returns, the company maintains a stable dividend policy with a minimum annual dividend of 20 yen per share and targets a consolidated payout ratio of 30%, aiming to increase this to 35% over the medium to long term. The dividend forecast for FY2025 is 100 yen annually, including a commemorative dividend. Share buybacks are currently under consideration in compliance with laws and regulations, taking into account the ratio of shares in circulation.