TV Tokyo Holdings Corp. reported a sharp decline in profit from its anime and streaming operations as Japan’s rising labor costs eat into the company’s margins.
Operating profit in the segment plunged 52% to 1.22 billion yen ($8.1 million) in the six months through September, despite sales climbing 2.9% to a record 20.98 billion yen. The Tokyo-based broadcaster cited increased investments in new productions and surging production expenses for the profit drop.
The company’s rights business, which includes anime licensing and distribution, saw revenue inch up 2.7% to 15.78 billion yen. Strong performance came from domestic distribution of “SPY×FAMILY CODE: White” and gaming rights for titles like “BORUTO” in China. However, expenses in this division jumped 20% due to new content production.
TV Tokyo Music posted a 5.6% revenue gain to 2.20 billion yen, helped by overseas royalties from anime soundtracks including “NARUTO” and “BORUTO.” Meanwhile, AT-X, the company’s satellite anime channel, managed to stem subscriber losses through promotional campaigns.
The weaker-than-expected performance prompted TV Tokyo to cut its earnings forecast for the fiscal year ending March 2025.
