Asahi Broadcasting Group HD, based in Osaka, is poised to report a financial shortfall in its upcoming full-year consolidated results for FY ending March 2024. The broadcaster recently revised its financial forecast, indicating a troubling shift from a projected net profit to an estimated net loss of 850 million yen. This downturn is attributed to an extraordinary loss totaling 710 million yen, primarily from impairment losses on the goodwill of SILVER LINK, an animation production subsidiary, and its office equipment.
The revised forecasts show a slight improvement in consolidated sales, now expected to hit 90 billion yen, up from the previously anticipated 88 billion yen. This increase stems from heightened TV spot revenue and higher earnings from anime-related ventures. However, these gains are overshadowed by a reduction in operating profit projections, down from 1.3 billion yen to 850 million yen, alongside a significant decrease in ordinary income, now expected at 750 million yen from an earlier estimate of 1.5 billion yen.
The financial strain extends to Asahi’s overseas operations and investments, with notable losses including 365 million yen in its international business and a decline in the valuation of investment securities.
Asahi Broadcasting’s strategic acquisition of SILVER LINK in August 2020 aimed to bolster its presence in the anime sector. Yet, the recent reorganization within its animation business and the subsequent write-downs reflect ongoing challenges in aligning this acquisition with broader financial health. These developments underscore the difficulties Asahi faces as it navigates a rapidly evolving media landscape and attempts to stabilize its financial footing amidst newer business ventures that have yet to fully mature.
