Nippon TV (TYO: 9404) FY23/24 Earnings Review

The company is succeeding where Disney Plus and HBO Max are falling short: Achieving profitability in streaming.

Please note: This article is for informational purposes only and is not intended as investment advice. The mention of specific stocks is not a recommendation to buy or sell any securities.

As you may be aware, I recently added Nippon TV to my portfolio:

Why I added Nippon TV to my stock portfolio

Hence, I’ve been eagerly awaiting their FY2023 earnings report, which finally dropped recently.

So, how did it live up to my expectations?

Summary

• Nippon TV's FY2023 report depicted a company maintaining stability amidst hard competition, especially from streaming, with a modest revenue increase of 2.7% and net income rising by 5.1%.

• The company still earns a hefty part of its revenue from terrestrial TV, and the operating profit (OP) of ¥41.9 billion was around 3% below estimates and 5% below market consensus. Despite these challenges, the company's diversified content strategy and strategic cost management helped cushion the blow.

• The core television broadcasting segment remained robust, while digital and streaming initiatives showed promising growth.

• Profitability in the content business faced pressures due to increased production costs and competitive market conditions.

• Leadership’s traditional approach continues to hinder the full utilization of their amazing IPs, which could otherwise drive significant growth.

• Nippon TV continues to emphasize its digital transformation and international expansion strategies to adapt to the rapidly changing media consumption landscape.

• The forecasted growth for FY2024 reflects the company's confidence in its strategic directio

Financial Highlights & Segment Performance