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IMAGICA Group Reports First Quarter Losses Amid Decreased Revenue

Hollywood Strikes and Market Adjustments Contribute to Financial Decline
Japan
i 6879.TSE Anime 20 Entertainment 100
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IMAGICA Group has reported a decrease in revenue and a net loss for the first quarter of the fiscal year ending March 2025. The decline is attributed to the previous year’s recording of major theatrical films and video streaming titles, alongside the impact of the Hollywood boom in the United States.

For the period from April to June, IMAGICA’s sales dropped to ¥20,060 million (US$139.0 million), down 15.7% year-on-year. The company posted an operating loss of ¥544 million (US$3.8 million) compared to a profit of ¥345 million in the same period last year. The ordinary loss was ¥498 million (US$3.4 million), shifting from a profit of ¥394 million. The net loss reached ¥519 million (US$3.6 million) against a profit of ¥305 million previously.

In the Video Contents Business, sales decreased by 25.4% to ¥5,345 million (US$37.0 million), although operating profit surged by 863.8% to ¥481 million (US$3.3 million). The segment suffered from a downturn in theatrical movies and dramas but saw increased sales in commercial production, CG animations, and publishing, driven by orders for TV programs and favorable sales of “The Apothecary Diaries.”

The Video Production Technology Services Business reported sales of ¥11,571 million (US$80.2 million), down 12.3%, and an operating loss of ¥1,016 million (US$7.0 million). Domestic E2E services performed solidly, but international operations struggled due to Hollywood strikes, impacting localization orders and new film productions.

In the Visual System Business, sales were ¥3,579 million (US$24.8 million), a decline of 7.8%, while operating profit increased by 27.0% to ¥325 million (US$2.3 million). The segment benefited from strong high-speed camera sales in Europe and a weak yen, although sales of broadcast visual systems and image processing LSIs were hindered by market adjustments and reduced orders.

IMAGICA’s full-year forecast remains unchanged, expecting sales of ¥98 billion (US$679.0 million), operating profit of ¥3.7 billion (US$25.7 million), ordinary profit of ¥3.2 billion (US$22.2 million), and net profit of ¥2.0 billion (US$13.9 million), reflecting modest declines from the previous fiscal year.

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