Toei Animation (4816) Q1 2025 earnings summary

Executive summary

• Achieved record first-quarter net sales and profits, driven by strong domestic and overseas streaming rights and licensing, especially for major IPs; yen depreciation also contributed.

• Net sales for Q1 FY2025 rose 16.0% year-over-year to ¥23,059 million, with operating profit up 219.0% to ¥6,684 million.

• Ordinary profit increased 82.5% year-over-year to ¥7,187 million; net profit attributable to owners of parent grew 70.0% to ¥5,306 million.

• Comprehensive income for the quarter was ¥7,357 million, up 32.6% year-over-year.

• Operating profit margin recovered to FY2023 levels due to high-margin streaming and licensing, and absence of prior year evaluation losses.

Financial highlights

• Net sales rose 16.0% year-over-year to ¥23,059 million; gross profit up 84.6% to ¥10,204 million.

• Operating profit surged 219.0% year-over-year to ¥6,684 million; net profit increased 70.0% to ¥5,306 million.

• Ordinary profit grew 82.5% year-over-year to ¥7,187 million; operating profit margin reached 29.0%.

• Basic earnings per share for Q1 FY2025 was ¥25.95, compared to ¥15.27 in the prior year.

• Total assets as of June 30, 2024, were ¥164,810 million; net assets were ¥132,727 million.

Outlook and guidance

• High progress against full-year estimates, with 1Q net sales at 28.1% of annual target and net profit at 35.4%.

• Full-year FY2025 net sales forecast at ¥82,000 million, down 7.5% year-over-year.

• Operating profit projected at ¥20,000 million (down 14.4%), ordinary profit at ¥20,500 million (down 22.5%), and net profit at ¥15,000 million (down 20.2%).

• Initial earnings estimates unchanged due to uncertainties in the global economy and FX rates, despite favorable trends.

• Large streaming rights sales to China expected from 2Q onward; "DRAGON BALL DAIMA" launch in October anticipated to boost licensing.