Avex announced its consolidated financial results for the first quarter of the fiscal year ending March 2025, showing a substantial decline in revenue and profitability. The company reported sales of 25.548 billion yen (US$181.4 million), a decrease of 20.1% from the same period last year. Avex recorded an operating loss of 1.281 billion yen (US$9.1 million), contrasting with a profit of 1.881 billion yen in the previous fiscal year. The ordinary loss reached 1.236 billion yen (US$8.8 million), compared to a profit of 1.985 billion yen last year. Despite these setbacks, net profit was 1.834 billion yen (US$13 million), down 32.2% year-on-year.
The company attributed the operating loss to a significant reduction in large-scale live performances within its music business amid increased costs in sales and administrative expenses driven by ongoing investments in intellectual property (IP) creation.
To counterbalance these losses, Avex sold shares in its LivePocket business subsidiary, generating a special profit of 4.548 billion yen (US$32.3 million). This strategic move contributed to the company’s positive net profit for the quarter.
Avex’s focus on IP development continues to weigh on its short-term financial performance, but the company anticipates that these investments will lead to future growth and revenue diversification. As it navigates the challenges in the live entertainment sector, Avex is exploring new avenues to strengthen its business model.
