Toei Animation reported record ordinary and net profits for the first half of its fiscal year, though revenue and operating income fell as the studio struggled to match last year’s box office success with “The First Slam Dunk” and “Kitaro” films.
The Tokyo-based anime producer posted net income of ¥12.98 billion ($85.4 million) for the six months through September, up 6.2% from a year earlier, according to results released Tuesday. Revenue declined 8.2% to ¥44.95 billion ($295.6 million), while operating profit slipped 2.1% to ¥16.64 billion ($109.5 million).
The divergence between profit and sales highlights how Toei benefited from strong margins in its licensing business, even as production revenue weakened. Overseas licensing for “One Piece” and “Digimon” franchises helped offset declining “Dragon Ball” merchandise and video rights sales, which had surged in the prior year.
Film production revenue plunged 22.4% as new releases for “Detective Oshiri” and “Precure” failed to replicate last year’s performance when “Slam Dunk” and “Kitaro” dominated Japanese theaters. The company’s video segment also suffered from fewer television anime titles in production.
Toei forecast full-year revenue of ¥88 billion ($578.9 million), down 12.7% from the previous period, with operating profit expected to drop 19.8% to ¥26 billion ($171.1 million). The projections suggest the studio anticipates continued pressure from diminished franchise momentum and a weaker release schedule.
The licensing division remained the bright spot, with segment profit jumping 18.4% to ¥12.98 billion ($85.4 million) as international demand for established properties stayed resilient.
