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Toei Animation Posts Record Profit on Surging Global Streaming Rights Revenue

Japanese animation giant sees profit margins climb to 32% as licensing business booms
Japan
t 4816.TSE Anime 20 Mid and Small Cap 2000 Entertainment 100
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Toei Animation Co. reported record financial results with net profit surging 25.7% to ¥23.6 billion ($165 million) for the fiscal year ended March 31, riding the wave of strong global streaming rights demand for flagship properties.

The Tokyo-based animation studio, home to global franchises “Dragon Ball” and “One Piece,” saw its net sales rise 13.7% to ¥100.8 billion ($710 million), marking a milestone crossing the ¥100 billion threshold. Operating profit jumped 38.8% to ¥32.4 billion, pushing the operating margin to 32.2% from 26.4% a year earlier.

Licensing emerged as the standout segment with sales soaring 27.5% to ¥50.6 billion, driven by robust gaming and merchandising rights performance for the “Dragon Ball” series and “One Piece,” particularly in North America. Film segment revenue increased 7.2% to ¥37.3 billion despite lower theatrical receipts, as streaming rights sales for “Dragon Ball DAIMA” and international demand for “ONE PIECE” compensated for the decline.

Looking ahead, the company forecast a 12.7% revenue decrease for fiscal 2026 to ¥88 billion amid an expected cooling from the record 2025 performance. Despite the projected dip, Toei announced strategic investments including a stake in AI firm Preferred Networks to boost production efficiency, signaling confidence in maintaining elevated business levels. The company raised its dividend to ¥41 per share and committed to maintaining at least that level for the next fiscal year.

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