FUJI MEDIA HOLDINGS, INC. August 6, 2020
Flash Report [Japanese GAAP] (Consolidated Basis)
Results for the three months ended June 30, 2020
Company name: Fuji Media Holdings, Inc.
Stock listing: | Tokyo Stock Exchange | Code number: 4676 | URL: https://www.fujimediahd.co.jp/en |
Representative: | Osamu Kanemitsu, President and Representative Director | ||
Person to contact: | Junji Okunogi, Senior Executive Managing Officer and General Manager of Treasury & Finance |
Department
Telephone: +81-3-3570-8000 (key) Scheduled date of filing quarterly securities report: August 12, 2020 Scheduled date of commencing dividend payments: ―
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Not scheduled
(Figures less than ¥1 million have been omitted.)
1. Consolidated Financial Results
(1) Business Performance
Three months ended June 30 | Percentages indicate year-on-year increases/(decreases). | ||||||||
Net sales | Operating income | Recurring profit | Net income attributable | ||||||
to owners of the parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
2020 | 120,299 | (19.4) | 2,822 | (62.5) | 5,578 | (46.5) | 2,013 | (90.6) | |
2019 | 149,217 | 3.2 | 7,519 | 23.0 | 10,430 | 22.5 | 21,367 | 277.4 | |
(Note) Comprehensive income: Three months ended June 30, 2020: ¥13,202 million, (33.3)%, | |||||||||
Three months ended June 30, 2019: ¥19,805 million, 90.1% | |||||||||
Basic earnings per share | Diluted earnings per | ||||||||
share | |||||||||
Yen | Yen | ||||||||
2020 | 8.71 | ― | |||||||
2019 | 92.30 | ― |
(2) Financial Position
Total assets | Net assets | Equity ratio | |
Millions of yen | Millions of yen | % | |
June 30, 2020 | 1,289,888 | 753,551 | 57.7 |
March 31, 2020 | 1,254,613 | 745,574 | 58.6 |
(Reference) Total shareholders' equity: June 30, 2020: ¥743,729 million, March 31, 2020: ¥735,431 million
1
2. Dividends
Year ended March 31, 2020/ Year ending March 31, 2021
Dividends per share | ||||||||||
1Q | 2Q | 3Q | Year-end | Total | ||||||
Yen | Yen | Yen | Yen | Yen | ||||||
2020 | ― | 22.00 | ― | 22.00 | 44.00 | |||||
2021 | ― | |||||||||
2021 | 18.00 | ― | 18.00 | 36.00 | ||||||
(Forecast) | ||||||||||
(Note) Revision to the most recently announced dividends forecast: None |
3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending March 31, 2021
Percentages indicate year-on-year increases/(decreases).
Net sales | Operating income | Recurring profit | ||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | |
Fiscal year | 569,400 | (9.8) | 13,000 | (50.6) | 18,200 | (47.8) |
Net income attributable to | Basic earnings per share | |||||
owners of the parent | ||||||
Millions of yen | % | Yen | ||||
Fiscal year | 9,000 | (78.2) | 38.91 | |||
(Note) Revision to the most recently announced financial results forecasts: None
Notes:
1. Significant changes in subsidiaries (changes in specific subsidiaries involving a change in the scope of consolidation) during the subject period: None
Additions: None | Deletions: None |
- Adoption of special accounting treatment in preparing the quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and modifications and restatements:
- Changes in accounting policies based on revision of accounting standards: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Modifications and restatements: None
2
4. Number of issued shares (Common stock)
Three months ended | Year ended | ||
June 30, 2020 | March 31, 2020 | ||
1) | Number of issued shares (including treasury stock) | 234,194,500 | 234,194,500 |
at end of the period (shares) | |||
2) | Number of treasury stock at end of the period | 2,885,904 | 2,863,495 |
(shares) | |||
Three months ended | |||
June 30, 2019 | |||
3) | Average number of issued shares during the | 231,308,596 | 231,488,964 |
period (shares) | |||
This flash report is outside the scope of quarterly review by certified public accountants or an audit firm.
Explanation of appropriate use of forecasts of financial results; other important items
The forward-looking statements made in this document, including the aforementioned forecasts, are based on all information available to the management at the time of this document's release and certain assumptions considered rational. Actual results may differ materially from the forecasts due to various factors in the future. Regarding the assumptions forming the forecast of financial results, please refer to "1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER OF THE FISCAL YEAR ENDING MARCH 31, 2021: (3) Explanation of Consolidated Financial Results Forecasts and Other Future Projections" on page 8.
3
CONTENTS OF ATTACHMENT
1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR | ||
THE FIRST QUARTER OF THE FISCAL YEAR ENDING MARCH 31, 2021 | 5 | |
(1) | Explanation of Business Results | 5 |
(2) | Explanation of Financial Position | 7 |
(3) | Explanation of Consolidated Financial Results Forecasts and Other Future Projections 8 | |
2. CONSOLIDATED FINANCIAL STATEMENTS AND PRIMARY NOTES | 9 | |
(1) | Consolidated Balance Sheets | 9 |
(2) | Consolidated Statements of Income and Consolidated Statements of | |
Comprehensive Income | 11 | |
(3) | Notes to Consolidated Financial Statements | 13 |
(Note on Assumptions for Going Concern) | 13 | |
(Notes in the Event of Major Change in Shareholders' Equity) | 13 | |
(Segment Information) | 13 | |
(Significant Events after the Reporting Period) | 14 |
4
1. QUALITATIVE INFORMATION ON CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER OF THE FISCAL YEAR ENDING MARCH 31, 2021
(1) Explanation of Business Results
The Japanese government's Monthly Economic Report on the Japanese economy for the three months ended June 30, 2020 (April 1, 2020 to June 30, 2020) states, "Concerning short-term prospects, the economy is expected to move toward picking up from an extremely severe situation, supported by the effects of the policies while the socio-economic activities will be resumed gradually with taking measures to prevent the spread of infectious diseases. However, attention should be given to the trend of domestic and overseas infections, and the effects of fluctuations in the financial and capital markets, among others." It also states that firms' judgments on business conditions "show signs of improvement, although some severe aspects remain."
Fuji Media Holdings Group (the "Group") was also affected by the impact of the novel coronavirus infection (COVID-19), including a decline in advertising revenue, a drop in travel and tourism demand, and the cancellation or postponement of events. However, the Group managed to limit the impact on revenue by making sales efforts.
Amid this economic environment, the consolidated net sales of the Group decreased overall during the three months ended June 30, 2020, down 19.4% from the same period of the previous fiscal year to ¥120,299 million, as there were decreases in both the Media & Content segment and the Urban Development, Hotels & Resorts segment.
In terms of earnings, operating income also decreased 62.5% year-on-year to ¥2,822 million, as there were revenue decreases in both the Media & Content segment and the Urban Development, Hotels & Resorts segment. Recurring profit decreased 46.5% year-on-year to ¥5,578 million, and net income attributable to owners of the parent decreased 90.6% year-on-year to ¥2,013 million, due to a reactionary decrease as a result of posting a gain on return of substitutional portion of employees' pension fund as an extraordinary gain in the previous fiscal year, as well as posting a loss on COVID- 19 under extraordinary loss.
Results by operating segment are as follows.
Three months ended June 30
Net sales | Operating income | |||||
2019 | 2020 | Change | 2019 | 2020 | Change | |
Millions of yen | Millions of yen | % | Millions of yen | Millions of yen | % | |
Media & Content | 124,573 | 105,081 | (15.6) | 5,534 | 2,613 | (52.8) |
Urban Development, | 23,177 | 13,998 | (39.6) | 2,151 | 527 | (75.5) |
Hotels & Resorts | ||||||
Other | 4,980 | 4,249 | (14.7) | 216 | 59 | (72.3) |
Eliminations | (3,514) | (3,030) | ― | (383) | (377) | ― |
Total | 149,217 | 120,299 | (19.4) | 7,519 | 2,822 | (62.5) |
5
Media & Content
Fuji Television Network, Inc. ("Fuji TV") saw a decrease in broadcasting revenue, as network time advertising sales dropped due to the cancellation or postponement of one-off programs such as sports events that had been scheduled, as a result of the impact of COVID-19, while spot advertising revenue also declined due to the deterioration of corporate business performances reflecting the slowdown in economic activities. Revenue from other businesses also declined as a result of cancelations or postponements of events and movie releases. As a result of the above, decreases were recorded in both revenue and earnings.
Fuji Satellite Broadcasting, Inc. recorded a decrease in revenue and an increase in earnings, due to efforts to curb operating expenses despite the decline in broadcasting revenue.
Nippon Broadcasting System, Inc., despite a strong performance in the radio shopping business, recorded a decrease in net sales overall due to a decline in broadcasting revenue and posted an operating loss.
Pony Canyon Inc. saw a steady performance in streaming and strong contributions made by package sales of old releases. However, net sales overall decreased due to poor ticket revenue and goods sales as events were canceled due to the impact of COVID-19. Meanwhile, earnings turned positive thanks to the absence of such expenses as head office relocation-related expenses in the previous fiscal year.
Fujipacific Music Inc. recorded a decrease in net sales overall, as royalty declined, in addition to the poor performance in the video production and artists management businesses due to the impact of COVID-19. However, earnings increased as a result of a decrease in the cost rate.
The Dinos business of Dinos Cecile Co., Ltd. recorded an increase in net sales overall, as particularly beauty and health products in television shopping performed strongly, while the catalog business also grew. helped by an increase in demand for catalog shopping especially in the living and food categories. Meanwhile, in the Cecile business, also, the catalog business as a whole grew particularly in the living goods and women's undergarments and posted an increase in net sales. As a result, Dinos Cecile Co., Ltd. as a whole posted increases in both revenue and earnings.
Quaras Inc. posted a decrease in revenue due to weak advertising revenue, resulting in the posting of an operating loss.
Fuji Games, Inc. posted a decrease in revenue as the games it released struggled and recorded an operating loss.
As a result of the above, in the Media & Content segment overall, net sales declined 15.6% from the same period of the previous fiscal year to ¥105,081 million, and segment operating income decreased 52.8% from the same period of the previous fiscal year to ¥2,613 million.
Urban Development, Hotels & Resorts
The Sankei Building Co., Ltd. recorded a decrease in net sales overall due to decreases in revenue in the building business and the asset development business. However, an increase in operating income was recorded due mainly to an increase in the number of condominiums sold in the housing business, as well as a rise in the profit rate of the properties sold in the asset development business.
GRANVISTA Hotels & Resorts Co., Ltd. posted an operating loss as a result of a decrease in
6
revenue due to a decline in demand for travel and tourism, including that of inbound tourists, caused by the impact of COVID-19.
As a result of the above, the Urban Development, Hotels & Resorts segment recorded net sales of ¥13,998 million, down 39.6% from the same period of the previous fiscal year, with segment operating income down 75.5% from the same period of the previous fiscal year to ¥527 million.
Other
Net sales in the Other segment overall decreased 14.7% from the same period of the previous fiscal year to ¥4,249 million, and segment operating income decreased 72.3% from the same period of the previous fiscal year to ¥59 million.
Affiliates accounted for using the equity method such as WOWOW Inc., ITOCHU Fuji Partners, Inc. and Nihon Eiga Broadcasting Corp. contributed to equity in earnings of affiliates.
(2) Explanation of Financial Position
Total assets at the end of the first quarter of the fiscal year under review (June 30, 2020) amounted to ¥1,289,888 million, an increase of ¥35,274 million (2.8%) from the end of the previous fiscal year (March 31, 2020).
Total current assets amounted to ¥412,855 million, a decrease of ¥11,178 million (2.6%) from the end of the previous fiscal year. This was due mainly to decreases of ¥26,615 million in notes and accounts receivable-trade and ¥26,745 million in marketable securities; against an increase of ¥36,617 million in cash and deposits.
Total noncurrent assets amounted to ¥876,814 million, an increase of ¥46,467 million (5.6%) from the end of the previous fiscal year. This was due mainly to increases of ¥30,513 million in investment securities and ¥14,790 million in buildings and structures, net.
Total liabilities amounted to ¥536,336 million, an increase of ¥27,298 million (5.4%) from the end of the previous fiscal year.
Total current liabilities amounted to ¥154,467 million, a decrease of ¥11,617 million (7.0%) from the end of the previous fiscal year. This was due mainly to decreases of ¥8,181 million in notes and accounts payable-trade and ¥4,494 million in trade accounts payable included in the "Other" line item.
Total noncurrent liabilities amounted to ¥381,868 million, an increase of ¥38,915 million (11.3%) from the end of the previous fiscal year. This was due mainly to increases of ¥31,819 million in long- term loans payable and ¥4,734 million in deferred tax liabilities included in the "Other" line item.
Total net assets amounted to ¥753,551 million, an increase of ¥7,976 million (1.1%) from the end of the previous fiscal year. This was due mainly to the recording of ¥2,013 million in net income attributable to owners of the parent and an increase of ¥11,485 million in valuation difference on available-for-sale securities; against a decrease of ¥5,152 million in retained earnings due to the payment of dividends of surplus.
7
(3) Explanation of Consolidated Financial Results Forecasts and Other Future Projections
The consolidated financial results during the three months ended June 30, 2020 saw decreases in both revenue and earnings in the Media & Content segment and the Urban Development, Hotels & Resorts segment. As for the forecasts of consolidated financial results for the fiscal year ending March 31, 2021, the Company has made no changes to its financial results forecasts announced in the "Notice of Forecasts of Consolidated Financial Results and Dividends" released on July 22, 2020. Whereas the timing of the containment of COVID-19 is still uncertain, the forecasts have been calculated, incorporating the expected impact of the pandemic on the Company's business assuming that the impact will remain during the fiscal year while economic activities resume and consumption continues to gradually recover.
8
2. CONSOLIDATED FINANCIAL STATEMENTS AND PRIMARY NOTES
(1) Consolidated Balance Sheets
Millions of yen | ||
March 31, 2020 | June 30, 2020 | |
ASSETS | ||
Current assets: | ||
Cash and deposits | 76,126 | 112,743 |
Notes and accounts receivable-trade | 110,390 | 83,774 |
Marketable securities | 97,536 | 70,790 |
Inventories | 101,163 | 104,937 |
Other | 39,725 | 41,474 |
Allowance for doubtful accounts | (908) | (865) |
Total current assets | 424,033 | 412,855 |
Noncurrent assets: | ||
Property, plant and equipment | ||
Buildings and structures, net | 135,228 | 150,018 |
Land | 258,037 | 259,885 |
Other, net | 42,759 | 40,673 |
Total property, plant and equipment | 436,024 | 450,577 |
Intangible assets | ||
Goodwill | 811 | 785 |
Other | 17,235 | 18,926 |
Total intangible assets | 18,046 | 19,711 |
Investments and other assets | ||
Investment securities | 333,806 | 364,320 |
Other | 44,242 | 43,962 |
Allowance for doubtful accounts | (1,773) | (1,758) |
Total investments and other assets | 376,276 | 406,524 |
Total noncurrent assets | 830,346 | 876,814 |
Deferred assets | 233 | 218 |
Total assets | 1,254,613 | 1,289,888 |
9
Millions of yen | ||
March 31, 2020 | June 30, 2020 | |
LIABILITIES | ||
Current liabilities: | ||
Notes and accounts payable-trade | 40,976 | 32,795 |
Electronically recorded obligations-operating | 12,374 | 13,007 |
Short-term loans payable | 40,559 | 42,393 |
Provision for sales returns | 673 | 603 |
Provision for directors' bonuses | 436 | 74 |
Provision for point card certificates | 457 | 477 |
Provision for environmental measures | 47 | - |
Other | 70,559 | 65,117 |
Total current liabilities | 166,085 | 154,467 |
Noncurrent liabilities: | ||
Bonds payable | 20,000 | 20,000 |
Long-term loans payable | 182,829 | 214,649 |
Provision for directors' retirement benefits | 2,443 | 2,281 |
Net defined benefit liability | 37,835 | 37,851 |
Other | 99,845 | 107,085 |
Total noncurrent liabilities | 342,953 | 381,868 |
Total liabilities | 509,038 | 536,336 |
NET ASSETS | ||
Shareholders' equity: | ||
Capital stock | 146,200 | 146,200 |
Capital surplus | 173,794 | 173,796 |
Retained earnings | 346,693 | 343,555 |
Treasury stock | (3,997) | (4,023) |
Total shareholders' equity | 662,691 | 659,528 |
Accumulated other comprehensive income: | ||
Valuation difference on available-for-sale securities | 76,475 | 87,961 |
Deferred gains or losses on hedges | (218) | (219) |
Revaluation reserve for land | 1,479 | 1,479 |
Foreign currency translation adjustment | (1,310) | (1,382) |
Remeasurements of defined benefit plans | (3,686) | (3,637) |
Total accumulated other comprehensive income | 72,739 | 84,200 |
Non-controlling interests | 10,143 | 9,822 |
Total net assets | 745,574 | 753,551 |
Total liabilities and net assets | 1,254,613 | 1,289,888 |
10
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Three months ended June 30
Millions of yen | ||
2019 | 2020 | |
Net sales | 149,217 | 120,299 |
Cost of sales | 102,540 | 82,356 |
Gross profit | 46,676 | 37,943 |
Selling, general and administrative expenses | 39,157 | 35,121 |
Operating income | 7,519 | 2,822 |
Non-operating income: | ||
Dividends income | 1,658 | 1,737 |
Equity in earnings of affiliates | 1,236 | 744 |
Other | 486 | 774 |
Total | 3,380 | 3,257 |
Non-operating expenses: | ||
Interests | 259 | 331 |
Loss on investments in partnership | 2 | 106 |
Other | 206 | 63 |
Total | 469 | 501 |
Recurring profit | 10,430 | 5,578 |
Extraordinary gain: | ||
Gain on sales of investment securities | 31 | 92 |
Gain on return of substitutional portion of employees' | 18,832 | - |
pension fund | ||
Subsidies for employment adjustment | ― | 32 |
Other | 34 | 20 |
Total | 18,899 | 145 |
Extraordinary loss: | ||
Loss on COVID-19 | - | 1,699 |
Other | 254 | 47 |
Total | 254 | 1,746 |
Income before income taxes | 29,075 | 3,977 |
Income taxes-current | 2,052 | 1,864 |
Income taxes-deferred | 5,571 | 270 |
Total | 7,624 | 2,135 |
Net income | 21,451 | 1,842 |
Net income (loss) attributable to non-controlling interests | 83 | (171) |
Net income attributable to owners of the parent | 21,367 | 2,013 |
11
Consolidated Statements of Comprehensive Income
Three months ended June 30
Millions of yen | ||
2019 | 2020 | |
Net income | 21,451 | 1,842 |
Other comprehensive income: | ||
Valuation difference on available-for-sale securities | (8,705) | 11,189 |
Deferred gains or losses on hedges | (44) | (5) |
Revaluation reserve for land | 666 | - |
Foreign currency translation adjustment | (10) | (123) |
Remeasurements of defined benefit plans | 6,758 | 93 |
Share of other comprehensive income of affiliates accounted for | (310) | 205 |
using equity method | ||
Total other comprehensive income | (1,645) | 11,360 |
Comprehensive income | 19,805 | 13,202 |
Comprehensive income attributable to: | ||
Comprehensive income attributable to owners of the parent | 19,725 | 13,474 |
Comprehensive income attributable to non-controlling interests | 80 | (271) |
12
-
Notes to Consolidated Financial Statements (Note on Assumptions for Going Concern)
Not applicable
(Notes in the Event of Major Change in Shareholders' Equity)
Not applicable
(Segment Information)
-
Three months ended June 30, 2019
1. Information on Amounts of Net Sales and Profit or Loss by Reported Segment
(Millions of yen) | |||||||
Reported segment | Consolidated | ||||||
Other | Adjustment | statement of | |||||
Media & | Urban | Total | |||||
(Note 1) | (Note 2) | income | |||||
Development, | Total | ||||||
Content | (Note 3) | ||||||
Hotels & Resorts | |||||||
Net sales: | |||||||
Net sales to third | 124,443 | 23,097 | 147,540 | 1,676 | 149,217 | ― | 149,217 |
parties | |||||||
Inter-segment net | 130 | 79 | 210 | 3,303 | 3,514 | (3,514) | ― |
sales and transfers | |||||||
Total net sales | 124,573 | 23,177 | 147,751 | 4,980 | 152,731 | (3,514) | 149,217 |
Segment operating | 5,534 | 2,151 | 7,686 | 216 | 7,902 | (383) | 7,519 |
income | |||||||
Notes: 1. The "Other" category is a business segment not included in reported segments. It includes such operations as temporary agency services, movables leasing and software development.
- The segment operating income adjustment of minus ¥383 million mainly comprises ¥805 million in eliminations of inter-segment business, together with minus ¥1,188 million in Group-wide expenses not allocated to a particular reported segment. Group-wide expenses are the expenses of the parent company as a certified broadcast holding company.
- Segment operating income is adjusted to the operating income figure on the Consolidated Statement of Income.
-
Three months ended June 30, 2020
1. Information on Amounts of Net Sales and Profit or Loss by Reported Segment
(Millions of yen) | |||||||
Reported segment | Consolidated | ||||||
Other | Adjustment | statement of | |||||
Media & | Urban | Total | |||||
(Note 1) | (Note 2) | income | |||||
Development, | Total | ||||||
Content | (Note 3) | ||||||
Hotels & Resorts | |||||||
Net sales: | |||||||
Net sales to third | 105,022 | 13,917 | 118,939 | 1,359 | 120,299 | ― | 120,299 |
parties | |||||||
Inter-segment net | 59 | 81 | 140 | 2,889 | 3,030 | (3,030) | ― |
sales and transfers | |||||||
Total net sales | 105,081 | 13,998 | 119,080 | 4,249 | 123,329 | (3,030) | 120,299 |
Segment operating | 2,613 | 527 | 3,140 | 59 | 3,200 | (377) | 2,822 |
income | |||||||
Notes: 1. The "Other" category is a business segment not included in reported segments. It includes such operations as temporary agency services, movables leasing and software development.
2. The segment operating income adjustment of minus ¥377 million mainly comprises ¥746 million in eliminations of inter-segment business, together with minus ¥1,123 million in Group-wide expenses not allocated to a particular reported segment. Group-wide expenses are the expenses of the parent company as a certified
13
broadcast holding company.
3. Segment operating income is adjusted to the operating income figure on the Consolidated Statement of Income.
(Significant Events after the Reporting Period) (Stock Repurchase)
At the meeting of the Board of Directors held on July 22, 2020, the Company passed a resolution regarding the details of the Company's stock repurchase to be conducted in accordance with the provisions set forth in Article 156 of the Companies Act as applied pursuant to the provisions set forth in Article 165, Paragraph 3 of the said Act.
-
Reason for the stock repurchase
The Company will conduct the stock repurchase in accordance with the Articles of Incorporation in order to implement a flexible capital policy that responds to changes in the business environment and to improve shareholder returns by improving capital efficiency. All of the repurchased shares are scheduled to be retired. - Details of the stock repurchase
- Class of shares to be repurchased: Common stock of the Company
- Total number of shares to be repurchased: 12,500,000 shares (upper limit) (5.3% of the total number of issued shares (excluding treasury stock))
- Total purchase price for the repurchase of shares: ¥10,000,000,000 (upper limit)
- Period of repurchase: August 7, 2020 to March 31, 2021
- Method of repurchase: Market purchase at the Tokyo Stock Exchange
---End of Document---
14
Attachments
- Original document
- Permalink
Disclaimer
Fuji Media Holdings Inc. published this content on 19 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2020 02:01:02 UTC
