Japanese animation company IG Port reported a 23% revenue increase to ¥14.6 billion ($99.0 million) for fiscal 2025, though profitability lagged forecasts as production costs spiral out of control.
The Tokyo-based company, which owns studios behind popular series like “Attack on Titan” and “Spy x Family,” saw net profit plunge 29% to ¥828 million ($5.6 million) as its core animation business hemorrhaged cash despite booming demand for content.
IG Port’s video production segment posted an operating loss of ¥1.1 billion ($7.5 million), widening from the previous year’s ¥940 million deficit. The company cited inflation-driven increases in labor costs, computer graphics expenses and outsourcing fees, compounded by extended production schedules that forced provisions for anticipated losses on certain projects.
The mounting losses underscore broader challenges facing Japanese animation studios, where production committees typically control intellectual property rights while leaving creators with thin margins. Smaller studios have been particularly vulnerable to labor cost fluctuations and yen depreciation, with only 57% of subcontractor studios remaining profitable, according to industry data.
Copyright licensing remained IG Port’s most lucrative segment, generating ¥3.96 billion ($26.8 million) in revenue and ¥1.93 billion ($13.1 million) in operating profit from popular franchises. The company’s new Shanghai retail store contributed ¥870 million ($5.9 million) in merchandise sales.
Despite current struggles, IG Port projects 8% revenue growth to ¥15.8 billion ($107.0 million) for fiscal 2026, with operating profit climbing 26% to ¥1.79 billion ($12.2 million) as production inefficiencies are addressed.
