Avex Group Holdings Inc. swung to an operating loss in the fiscal year ended March 2025, as the Japanese entertainment company grappled with deteriorating performance in its core music business and overseas operations.
The Tokyo-based company posted an operating loss of ¥1.82 billion ($12.1 million) compared with a profit of ¥1.27 billion two years earlier. Revenue declined 1.3% to ¥131.69 billion ($876.6 million).
Despite the operating loss, Avex managed to report a net profit of ¥1.14 billion ($7.6 million), up 15.4%, boosted by extraordinary gains from subsidiary share transfers and third-party share allocations.
The music segment, which accounts for nearly 87% of total revenue, recorded an operating loss of ¥1.18 billion as physical album sales continued to decline. Meanwhile, the anime and video division was a bright spot, posting a ¥299 million profit as theatrical releases performed well.
Overseas operations faced significant headwinds with revenue plunging 39.4% to ¥3.45 billion and losses widening to ¥942 million due to fewer large-scale events in Asia and the Middle East.
Looking ahead, Avex provided limited guidance, forecasting an operating profit of ¥3 billion for fiscal 2026 without disclosing revenue projections. The company expects net income to increase modestly to ¥1.2 billion, suggesting continued challenges despite the anticipated return to profitability.
