Shochiku Co. reported a dramatic turnaround in its first quarter, with net income reaching ¥1.51 billion ($10.3 million) compared to a ¥88 million loss in the same period last year. The 130-year-old entertainment conglomerate credited strong film distribution and a recovery in its traditional theater operations for the improved performance.
Revenue climbed 11.2% to ¥21.66 billion ($147.4 million) for the three months ended May, driven by successful movie releases including “Detective Conan: The Last Case of the Lone Eye” which exceeded ¥10 billion in box office receipts. Operating profit surged 214.7% to ¥1.09 billion ($7.4 million).
The company’s theater division, which includes prestigious kabuki performances at venues like the Kabukiza Theatre, returned to profitability with segment earnings of ¥74 million after posting a ¥514 million loss the previous year. The May succession ceremony at Kabukiza, featuring the naming of the eighth-generation Onoe Kikugoro, drew strong attendance.
Shochiku operates one of Japan’s Big Four film studios and manages traditional kabuki theaters, making it a unique player bridging modern entertainment and centuries-old performing arts. The real estate segment, which includes properties around Tokyo’s Ginza district, generated stable rental income of ¥14.28 billion ($97.1 million).
For the full fiscal year ending February 2026, management forecasts revenue of ¥95 billion ($646.7 million), up 13.1% from the previous year, with operating profit expected to reach ¥3.1 billion ($21.1 million). The projections suggest continued momentum as Japan’s entertainment sector rebounds from earlier disruptions.
The company’s shares have gained approximately 14.9% over the past year, though they trade at elevated valuations compared to industry peers. Recent analysis noted concerns about the stock’s 2.1 times price-to-sales ratio when nearly half of Japanese entertainment companies trade below 1.2 times.
