Japanese animation studio IG Port Inc. reported mixed results for its fiscal second quarter, with higher revenue failing to translate into stronger profits as rising production costs squeezed margins.
Net income fell 13.5% to 473 million yen (US$3.2 million) in the six months ended November 30, despite revenue surging 47% to 7.69 billion yen. Operating profit increased 38% to 825 million yen.
The Tokyo-based company’s core animation production business posted an operating loss as project delays and escalating creator fees drove up costs. However, its licensing segment more than doubled revenue and profits, buoyed by strong performance of titles like “Haikyu!!” and “Kaiju No. 8.”
IG Port maintained its full-year forecast, projecting net income of 1.12 billion yen on revenue of 12.99 billion yen. The company expects its merchandising business to reach 700 million yen in sales by December, citing expansion into overseas markets including China.
The company unveiled several new projects, including Netflix series and theatrical releases slated for 2025. Production delays on some current projects forced the reallocation of fixed costs, pressuring profitability in the near term.
