Nippon Television (9404) Q1 2024 earnings summary

Executive summary

• Net sales rose 8.2% year-over-year to JPY 106,087 million in 1Q FY2024, with operating profit up 10.6% to JPY 11,438 million and net income attributable to owners up 27.4% to JPY 10,757 million, driven by digital ad growth and Studio Ghibli consolidation.

• Comprehensive income increased 31.4% year-over-year to JPY 38,923 million, reflecting strong performance and gains in available-for-sale securities.

• Spot ad sales increased slightly, digital ad sales rose steadily, and cross-shareholding stock sales contributed JPY 4.3 billion in gains.

• STUDIO GHIBLI's financial consolidation significantly boosted results; TIPNESS, MURAYAMA, and la belle vie posted operating losses.

Financial highlights

• Gross profit increased to JPY 36,028 million from JPY 32,629 million YoY; operating profit rose to JPY 11,438 million from JPY 10,344 million.

• Ordinary profit reached JPY 13,586 million, up from JPY 13,203 million, and profit before income taxes was JPY 17,887 million, boosted by a JPY 4,340 million gain on sale of investment securities.

• EPS for 1Q FY2024 was JPY 42.85, up from JPY 33.10 in 1Q FY2023.

• Total assets increased to JPY 1,202,909 million as of June 30, 2024, with net assets at JPY 975,002 million and a shareholders' equity ratio of 78.6%.

• Digital ad revenue up 51.6% YoY; spot ad sales up 0.1%; time ad sales down 1.4%.

Outlook and guidance

• FY2024 full-year forecast unchanged: net sales JPY 442,000 million (+4.4%), operating profit JPY 42,000 million (+0.3%), net income JPY 35,000 million (+1.0%).

• Dividend forecast: annual JPY 40 per share.

• Terrestrial TV ad revenue expected to grow 3% for time and 1% for spot YoY.