Japanese entertainment conglomerate Avex Inc. reported its first quarterly operating profit in over a year, driven by increased concert activity and stronger anime content sales, though net income declined significantly.
The Tokyo-based company posted ¥1.46 billion ($9.7 million) in operating profit for the three months ended June, reversing a ¥1.28 billion loss from the same period last year. Revenue climbed 28% to ¥32.7 billion ($218 million), according to the company’s earnings statement released Wednesday.
The turnaround reflects Avex’s strategy to capitalize on Japan’s recovering live entertainment market following pandemic restrictions. Large-scale concerts and live performances generated substantial revenue growth, while the company’s anime and video segment benefited from successful distribution of live-action content.
Despite the operating improvement, net income fell 58% to ¥761 million ($5.1 million), highlighting ongoing challenges in the competitive entertainment landscape. The company reduced selling and administrative expenses through cost-cutting measures while improving gross margins on music package sales.
Avex maintained its full-year forecast unchanged, projecting ¥3 billion in operating profit and ¥1.2 billion in net income for fiscal 2026. The company recently expanded its US operations through the acquisition of S10 Music Publishing and appointment of Brandon Silverstein as CEO of the newly formed Avex Music Group.
The entertainment giant, which manages J-pop artists and has been investing heavily in anime production, faces pressure to demonstrate sustainable profitability as it pursues international expansion while competing with streaming platforms and global entertainment companies for audience attention.
