Japanese entertainment group Avex Inc. reported an operating loss of 2.12 billion yen ($14.1 million) in the fiscal second quarter, dragged down by fewer live events and increased costs. Revenue dropped 12.8% to 56.13 billion yen ($374.2 million).
The company’s anime division emerged as a bright spot, with sales jumping 24.7% to 8.99 billion yen ($59.9 million). The unit swung to an operating profit of 45 million yen, recovering from a 187 million yen loss a year earlier.
“Look Back,” a 58-minute animated film, propelled international growth with box office receipts of 1.9 billion yen ($12.7 million) overseas. The film attracted 1.75 million viewers across Asia, North America, and China, surpassing its domestic audience of 1 million. In China alone, it drew 860,000 viewers in its first six days.
Digital content now dominates Avex’s anime business, with packaged media falling below 10% of segment revenue for the first time. The company plans to release “The Rose of Versailles” animated film in January 2025.
Despite the quarterly setback, Avex forecasts an operating profit of 2 billion yen for the full fiscal year ending March 2025.
