Shochiku Co., a major Japanese entertainment company, cut its earnings forecast for the third time this fiscal year as theater attendance and movie revenues continue to disappoint. The company now projects an operating loss, reversing its earlier profit outlook.
The Tokyo-based entertainment group expects to post an operating loss of 940 million yen ($6.3 million) for the year ending February 2024, compared with its previous forecast of a 1 billion yen profit. Sales are projected to fall 5% to 82.4 billion yen from the earlier estimate.
The company cited slower-than-expected recovery in group ticket sales and weaker-than-anticipated performance of its theatrical shows during the autumn and year-end season. Its cinema division, operated by subsidiary Shochiku Multiplex Theatres, also struggled as nationwide movie attendance remained sluggish.
The net loss is expected to widen to 1.87 billion yen from the previously forecast 580 million yen loss. The company’s theatrical division faced particular challenges as several productions failed to meet initial box office projections.
This marks a significant setback for Shochiku, which had already lowered its guidance in July and October, highlighting persistent challenges in Japan’s entertainment sector as it struggles to return to pre-pandemic performance levels.
