Fuji Media Holdings Inc. cut its full-year profit forecast by 74% as its flagship TV network faces backlash over its handling of a scandal involving a network talent and a woman.
The Tokyo-based broadcaster now expects net income of 9.8 billion yen ($66 million) for the year ending March, down from its previous forecast, as advertising revenue is set to decline sharply in the fourth quarter. Operating profit is projected to fall 46% to 18 billion yen.
The downward revision comes despite strong performance in the first nine months, when net income rose 25% to 24.1 billion yen. The company benefited from higher terrestrial TV advertising revenue and growth in streaming services through December.
Fuji Media has established a third-party committee of independent lawyers to investigate the incident from June 2023 and the network’s subsequent response. The company also launched an internal project team at Fuji Television to rebuild public trust.
The media group’s tourism business showed growth, helped by a new aquarium opening and recovering inbound tourism, but couldn’t offset the impact of the scandal on its core broadcasting operations.
