In its financial report for the second quarter ending March 2024, major music and video company Avex disclosed a 19% year-on-year surge in consolidated sales, reaching ¥64,355 million. The recovery of live performances in the music business contributed to this increase, although profits experienced a 23.4% decline due to heightened investment in intellectual property (IP).
Operating income contracted by 40.1% to ¥2,167 million, ordinary income fell by 42% to ¥2,186 million, and net income saw a 23.4% dip to ¥2,458 million.
Despite a 9.4% sales growth in the animation and video business, Avex recorded an operating loss of ¥54 million, a shift from a surplus of ¥254 million in the same period the previous year. The decline in gross profit is attributed to increased SG&A expenses, despite a boost in movie distribution income and events.
While sales of video and music packages dropped by 21.4% to ¥1,161 million, non-package sales, mainly comprising revenue from rights, witnessed sustained growth, totaling ¥6,041 million. Avex is steering its business focus toward intellectual property, exemplified by projects like “Paradox Live THE ANIMATION” and “MF Ghost.”
The company is also making strides in the overseas event strategy, having hosted the successful anime event “Anime Village” in Saudi Arabia. With plans to establish a local subsidiary in the country, Avex aims to bolster its entertainment business in the Middle East, aligning with its broader strategy of global expansion, including operations in the United States.
