Avex, known for its robust music and video business, unveiled its consolidated financial results for the fiscal year ending March 2024, marking an impressive 9.7% increase in sales to ¥133,387 million. This growth was significantly driven by a 20.2% rise in its mainstay music business. Despite these gains, the company’s profitability tells a different story, with operating income plummeting by 51.7% to ¥1,633 million and ordinary income down 62.9% to ¥1,506 million. Net income also suffered a steep decline, dropping by 64% to only ¥987 million, mainly due to the recording of extraordinary losses including impairment of fixed assets and allowance for doubtful accounts.
The animation and video segment of Avex also experienced revenue growth, albeit with a severe drop in profits. While sales increased by 5.7% to ¥16,118 million, the division faced a sharp decrease in operating revenue by ¥750 million from the previous year. Particularly hard hit was the package division handling Blu-ray, DVD, and CD sales, which saw a dramatic 43.5% decline in sales to ¥2,158 million. Conversely, non-package divisions, which include overseas sales and events, grew by 22.1%, reaching sales of ¥13.96 billion, although this was not enough to offset the losses in packaged sales.
The fiscal year saw notable titles like “MF Ghost,” “Heaven Daimakyo,” and “Paradox Live THE ANIMATION.” However, despite these efforts, the animation and video business strategy lagged, impacted by a lack of major hits and challenges in acquiring strong titles from external sources.
Looking forward, Avex plans to pivot its strategy to better leverage international markets, distribution channels, and the film sector. The company aims to enhance partnerships with external studios, boost in-house production capabilities, and focus on acquiring competitive external IP. These strategies are part of a broader initiative to develop blockbuster titles that can be sustained over the long term and maximize profitability, with upcoming projects like “Grief’s Ghost,” “You Are Meido-sama,” the animated feature “Look Back,” and the KING OF PRISM Project.
