U-NEXT Holdings reported a ninth consecutive year of record revenue for the 12 months ended August, though profit growth lagged behind sales expansion. The Tokyo-based streaming operator posted revenue of ¥390.4 billion ($2.6 billion), up 19.5% from a year earlier, while net income rose 19.8% to ¥18.4 billion ($123 million).
The company’s content distribution unit delivered the strongest performance, with revenue climbing 16.6% to ¥128.4 billion ($856 million) and operating profit advancing 12.3% to ¥9.6 billion ($64 million). Management attributed the growth to adding 500,000 paying subscribers and demand for its soccer package, which includes Premier League and La Liga matches.
Operating profit increased just 8.5% to ¥31.6 billion ($210 million), suggesting margin pressure as the company invests to compete with Netflix and Amazon Prime Video in Japan’s crowded streaming market. The telecommunications and energy segments also posted record results, while store solutions remained flat.
For the current fiscal year ending August 2026, U-NEXT projected revenue would rise 8.6% to ¥424 billion ($2.83 billion), with operating profit gaining 6.1% to ¥33.5 billion ($223 million). Net income is expected to inch up just 0.6% to ¥18.5 billion ($123 million), indicating slower momentum ahead. The forecast suggests profitability challenges may persist even as the company expands its subscriber base.
