Fuji Media Holdings cut its full-year profit forecast by 66% after major advertisers pulled their commercials from its television unit following recent media reports about the broadcaster. The Tokyo-based company now expects net income of ¥9.8 billion ($66 million) for the year ending March 2025, down from its previous projection of ¥29 billion.
The media conglomerate’s TV unit, Fuji Television, will waive advertising fees for clients who replaced their commercial slots with public service announcements. This decision aims to maintain relationships with advertisers but will significantly impact fourth-quarter results. The broadcaster expects advertising revenue to drop by ¥23.3 billion from earlier estimates.
The revision also reflects changes in real estate sales plans at its urban development subsidiary Sankei Building Co. The parent company lowered its revenue forecast by 8.4% to ¥548.2 billion and cut its operating profit outlook by 49% to ¥18 billion.
The steep downward revision highlights the financial impact of reputational damage on Japanese broadcasters, who rely heavily on advertising revenue. The company’s shares trade on the Tokyo Stock Exchange’s Prime Market.
