This document is a translation of the Japanese original. The Japanese original has been disclosed in Japan in accordance with Japanese accounting standards and the Financial Instruments and Exchange Act. This document does not contain or constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on this document. In the case that there is any discrepancy between the Japanese original and this document, the Japanese original is assumed to be correct.
Consolidated financial results (Japanese Accounting Standards) for the Third Quarter of the fiscal year ending March 31, 2022
Filing date: February 4, 2022 | |||
Company name: | IMAGICA GROUP Inc. | Stock exchange listing: Tokyo 1st section | |
Securities code: | 6879 | URL: | https://www.imagicagroup.co.jp/en/ |
Representative: | Nobuo Fuse, Representative Director, President | Tel:+81-3-5777-6295 | |
Inquiries: | Masakazu Morita, Director, Managing Executive Officer | ||
Quarterly report filing date (as planned): | February 4, 2022 | ||
Dividend payment date (as planned): | - | ||
Supplemental material of quarterly results: | Yes | ||
Convening briefing of quarterly results: | Yes |
(Millions of yen, rounded down)
1. Consolidated Financial Results for the Third Quarter of the fiscal year ending March 31, 2022 (April 1, 2021 - December 31, 2021)
(1) Consolidated Operating Results
(Percentage represents change from the same period of the previous fiscal year.) | ||||||||
Net sales | Operating income | Ordinary income | Net income attributable | |||||
to owners of the parent | ||||||||
Millions of | ||||||||
yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
9 months ended Dec. 31, 2021 | 55,618 | (5.2) | 1,938 | - | 2,448 | - | 2,460 | - |
9 months ended Dec. 31, 2020 | 58,670 | (13.0) | (2,369) | - | (2,729) | - | (663) | - |
(Note) Comprehensive income: 3rd quarter ended December 31, 2021: 3,000 millions of yen /-%
3rd quarter ended December 31, 2020: (1,135) millions of yen /-%
Earnings per share of | Diluted earnings | ||||||||||||
per share of | |||||||||||||
common stock | |||||||||||||
common stock | |||||||||||||
Yen | Yen | ||||||||||||
9 months ended Dec. 31, 2021 | 55.42 | - | |||||||||||
9 months ended Dec. 31, 2020 | (14.96) | - | |||||||||||
(2) Consolidated Financial Position | |||||||||||||
Total assets | Net assets | Shareholders' equity | |||||||||||
ratio to total assets | |||||||||||||
Millions of yen | Millions of yen | % | |||||||||||
As of Dec 31, 2021 | 69,512 | 33,232 | 43.8 | ||||||||||
As of March 31, 2021 | 60,446 | 29,832 | 45.4 | ||||||||||
(Reference) Shareholders' equity: | As of December 31, 2021: 30,423 millions of yen | ||||||||||||
As of March 31, 2021: 27,450 millions of yen | |||||||||||||
2. Dividends | |||||||||||||
Dividend per share | |||||||||||||
1st quarter- end | 2nd quarter- end | 3rd quarter- end | Year-end | Annual | |||||||||
yen | yen | yen | yen | yen | |||||||||
Year ended March 31,2021 | - | 0.00 | - | 0.00 | 0.00 | ||||||||
Year ending March 31,2022 | - | 0.00 | - | ||||||||||
Year ending March 31,2022 | 10.00 | 10.00 | |||||||||||
(Forecast) | |||||||||||||
(Note) Changes in dividends | forecast from the latest | disclosed information: None |
3. Consolidated forecast for the fiscal year ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentage represents change from the same period of the previous fiscal year.)
Net income | Earnings per | |||||||||||
Net sales | Operating income | Ordinary income | attributable | share | ||||||||
to owners of the | of common | |||||||||||
parent | stock | |||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | yen | ||||
Fiscal year ending Mar.2022 | 77,000 | (11.2) | 2,000 | - | 2,500 | - | 2,500 | (27.6) | 56.32 | |||
(Note) Changes in earnings forecast from the latest disclosed information: None
*Notes:
- Material changes in subsidiaries during this period (changes in scope of consolidations resulting from change in subsidiaries): Yes
- The application of specific accounting of the consolidated quarterly financial statements: No
- Changes in accounting policies, accounting estimates and retrospective
- Changes in accounting policies based on revisions of accounting standards: Yes
- Changes in accounting policies other than ones based on revisions of accounting standards: Yes
- Changes in accounting estimates: Yes
- Retrospective restatement: None
- Number of issued and outstanding shares (common stock)
- Number of issued and outstanding shares at the end of fiscal year (including treasury stock)
As of December 31, 2021 | 44,741,467 shares | As of March 31, 2021 | 44,741,467 shares |
2) Number of treasury stock at the end of fiscal year
As of December 31, 2021 | 345,938 shares | As of March 31, 2021 | 353,231 shares |
3) Average number of shares
As of December 31, 2021 | 44,391,917 shares | As of December 31, 2020 | 44,338,006 shares |
*Consolidated quarterly financial results are exempted from quarterly review by a public certified accountant or an auditing firm.
(Explanation regarding the appropriate usage of financial forecasts and other special instructions)
Forward-looking statements, such as financial forecasts, presented in this document are based on information available and certain assumptions deemed to be reasonable to the Company at the time of publication, and are not to be read as guarantees of future performance by the Company. For preconditions of the assumptions and special instructions regarding the appropriate use of financial forecasts, please refer to "1. Qualitative Information on Results in the Third Quarter, (3) Explanation of Consolidated Forecasts and Other Forward-lookingInformation" on page 4 of the supplemental material.
Table of Contents | ||
Qualitative Information on Results in the Third Quarter.................................................................................................................... | ||
(2) | Explanation of Financial Position ..................................................................................................................................................... | 4 |
(3) | Explanation of Consolidated Forecasts and Other Forward-looking Information ............................................................................ | 4 |
2. | Quarterly Consolidated Financial Statements..................................................................................................................................... | 5 |
(1) | Quarterly Consolidated Balance Sheets........................................................................................................................................... | 5 |
(2) | Quarterly Consolidated Statements of Income and Statements of Comprehensive Income........................................................... | 7 |
(3) | Notes to Quarterly Consolidated Statements .................................................................................................................................. | 9 |
(Notes regarding ongoing concern assumption) .................................................................................................................................. | 9 | |
(Notes concerning material changes in the amount of shareholders' equity) ..................................................................................... | 9 | |
(Changes in accounting policies, etc.)................................................................................................................................................... | 9 | |
(Segment information and others) ..................................................................................................................................................... | 11 |
1
1. Qualitative Information on Results in the Third Quarter
- Explanation of Operating Results
(Overview of the third quarter of consolidated fiscal year ending March 31, 2022)
The business environment surrounding the IMAGICA GROUP saw changes in the social environment due to the novel coronavirus (COVID-19) pandemic, in addition to rapid technological innovations. These factors are bringing about many changes in our imaging- related businesses such as the emergence of the online live market and video streaming market. The IMAGICA GROUP formulated G- EST 2025, our new mid-term plan, based on our view that these changes present growth opportunities. We have positioned fiscal year ending March 31, 2022, the initial year of this plan, as the year in which we will build the foundation for transforming into a highly profitable business, and are pursuing initiatives aimed at achieving the plan in each business segment.
The Group's financial performance for the third quarter of consolidated fiscal year ending March 31, 2022 resulted in net sales of 55,618 million yen (down 5.2% year-on-year), an operating income of 1,938 million yen (compared to an operating loss of 2,369 million yen in the third quarter of the previous fiscal year), and an ordinary income of 2,448 million yen by posting non-operating income including subsidy income of 641 million yen (compared to an ordinary loss of 2,729 million yen in the third quarter of the previous fiscal year). Net profit attributable to owners of the parent was 2,460 million yen (compared to a loss of 663 million yen in the third quarter of the previous fiscal year).
The decline in net sales resulted from the implementation of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020; hereafter, the "Revenue Recognition Accounting Standard") and related guidance from the beginning of the first quarter of consolidated fiscal year ending March 31, 2022, and the sales of all shares held in SDI Media Group, Inc. at the end of last fiscal year, removing it from consolidation.
See "(Changes in accounting policies, etc.)" and "(Segment information and others)" under "2. Quarterly Consolidated Financial Statements, (3) Notes to Quarterly Consolidated Statements" for further details on the impact of the implementation of the Revenue Recognition Accounting Standard and related guidance on the financial status and operating results of the IMAGICA GROUP.
(Performance by business segment)
The financial results by business segment are as follows.
One subsidiary (IMAGICA LIVE Corp.), which was previously included in the Production Services business segment, was reclassified to the Imagining Systems & Solutions business segment from the first quarter of consolidated fiscal year ending March 31, 2022. The consolidated fiscal year comparisons for the third quarter are based on the new classification.
- Content Creation
The financial performance of the Content Creation business segment in the third quarter of consolidated fiscal year ending March 31, 2022 resulted in net sales of 15,284 million yen (up 10.0% year-on-year) and an operating income of 177 million yen (compared to an operating loss of 562 million yen in the third quarter of the previous fiscal year).
For feature films, TV dramas, TV animation and other productions, the delivery of some feature films was postponed until the fourth quarter, but some dramas for video streaming service providers were delivered, so sales were healthy. For TV commercials, the number of orders received was on a track to recovery, and profitability improved. Orders were also strong for online streaming of live music performances and shooting music videos.
The above factors resulted in an increase in both sales and operating income in the Content Creation business segment.
- Production Services
The financial performance of the Production Services business segment in the third quarter of consolidated fiscal year ending March 31, 2022 resulted in net sales of 29,776 million yen (down 6.3% year-on-year) and an operating income of 1,116 million yen (compared to an operating loss of 2,340 million yen in the third quarter of the previous fiscal year).
For domestic E2E services*1, orders for services for video streaming service providers (video file compression, conversion, and other encoding and localization services) were healthy, due in part to collaboration with Pixelogic Holdings LLC (hereafter, PXL), which became a consolidated subsidiary last fiscal year. In addition, the number of orders for digital cinema services for Japanese and non- Japanese works recovered, as the number of feature films increased. We continuously secured orders for post-production services for feature films and animation works.
For international E2E services, PXL kept receiving a healthy number of orders for localization from video streaming service providers. Also, as theaters in Europe and the U.S. were reopened, the sales of digital cinema services got back on a recovery track.
In post-production services for TV programs and TV commercials, etc. *2, the sales of services for TV commercials remained favorable, and the demand for the online delivery system grew thanks to the recovery of the advertisement market.
In game production, human talent services, etc. *3, the number of orders for game production-related services, such as 3DCG production and debugging, was healthy.
2
Sales for the Production Services business segment as a whole declined due to the sale of all shares held in SDI Media Group, Inc. at the end of last fiscal year, removing the subsidiary from consolidation. However, the structural reform completed last fiscal year and the healthy performance of E2E services inside and outside Japan led to improvement in profit.
*1 E2E services: Refers to an integrated end-to-end (E2E) service that covers the entire post-production process for feature films, dramas, animation, and other audio/video content up to media services for localization (subtitling/dubbing) and distribution of these through all kinds of media, including theaters, TV, and video streaming via the Internet.
*2 As part of the restructuring of the Production Services business, the description of services collectively called "media and post- production services" up to last fiscal year has been revised to "E2E services" and "post-production services for TV programs and TV commercials, etc."
*3 The names of "human talent services" and "digital content" used up to last fiscal year have been revised to "game production, human talent services, etc."
*Companies in the international E2E services area have a fiscal year-end of December 31. The financial performance for this area during the third quarter of fiscal year ending March 31, 2022 therefore reflects the results for January 1 through September 30, 2021.
- Imaging Systems & Solutions
The financial performance of the Imaging Systems & Solutions business segment in the third quarter of consolidated fiscal year ending March 31, 2022 resulted in net sales of 11,782 million yen (down 15.6% year-on-year) and an operating income of 1,023 million yen (up 17.0% year-on-year).
Regarding systems for broadcasting stations, demand remained sluggish. On the other hand, the sales of high-speed cameras were on a track to recovery in Japan and grew from the previous year in other Asian countries, Europe, and the U.S. The online delivery system for TV commercials continued to see strong sales due to expansion in market needs, while video and image processing LSI saw strong domestic and overseas sales, in particular in North America and South Korea.
Moreover, IMAGICA LIVE Corp. was included in the Imaging Systems & Solutions business in the first quarter of consolidated fiscal year ending March 31, 2022 due to segment reclassification. The number of orders for live sports relay and streaming services for archived videos was healthy.
The full amount of compensation received from customers for sale of mobile communication lines was previously recognized as revenue. However, the implementation of the Revenue Recognition Accounting Standard and related guidance has resulted in a year- on-year decrease in net sales due to the change in the method of recognizing revenue for the net amount after amounts paid to suppliers are deducted from the total amount of the sale. However, demand still remains healthy.
The above factors resulted in a decrease in sales and an increase in profit in the Imaging Systems & Solutions business segment.
3
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Imagica Group Inc. published this content on 18 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 February 2022 07:20:04 UTC.