https://finance.logmi.jp/articles/379242Performance Summary
Mr. Riku Tazumi (hereinafter referred to as Tazumi): Thank you all for gathering today. I am Tazumi, CEO of ANYCOLOR Inc.
Mr. Shinya Tsuri (hereinafter referred to as Tsuri): I am Tsuri, the CFO. I will explain the highlights of the third quarter of the fiscal year ending April 2024. Overall, both sales and profits have landed at levels roughly as planned for the cumulative third quarter.
The fourth quarter was originally expected to record the highest sales and profits of this fiscal year, due to schedules for commerce, events, and corporate projects. We are currently working toward achieving this.
Fiscal Year Ending April 2024 Third Quarter Financial Results
The domestic business "Nijisanji" has seen no significant changes in the industry environment or other factors during the third quarter of the fiscal year ending April 2024, and we recognize it as being in a favorable condition.
In terms of streaming, commerce, events, and promotions, commerce and events, in particular, performed well. Looking at "Nijisanji" as a whole, the landing for the third quarter alone was generally as planned.
Regarding events, we recognize that the "Nijisanji Fest" held in December created a significant buzz compared to the previous year.
For "NIJISANJI EN," we believe there are some challenges. We think it's necessary to build a stable business structure for growth, enhancing support for VTuber activities, the provision of various attractive contents beyond that support, and efforts in each field to expand as a group.
On the cost side, while the sales of the "Nijisanji Fest" were very good, the event itself recorded a significant loss when considering only the ticket sales, which worsened the cost aspect for the third quarter more than expected.
Quarterly Sales Trend
Here is the transition of quarterly sales. "Nijisanji" is a business developed in Japan, and overall, it is doing well. Regarding the "Nijisanji Fest" mentioned earlier, we sold 740 million yen worth of tickets in the third quarter of the fiscal year ending April 2024.
For a similar event held in the second quarter, the total ticket sales were 830 million yen, of which 190 million yen was recorded from another event. Therefore, the ticket sales for "Nijisanji Fest" were about 640 million yen, and this has grown to 740 million yen in the third quarter of the fiscal year ending April 2024.
Considering the scale of the event, online ticket sales, and other factors, we think the results are very favorable.
On the other hand, "NIJISANJI EN" has seen a significant downturn compared to the same period last year. The high sales in the third quarter of last year were due to particular merchandise selling very well, but in the third quarter of the fiscal year ending April 2024, such merchandise sales have settled down compared to last year, leading to a decrease in revenue compared to the same period last year.
Moving forward, one of our policies is to further energize "NIJISANJI EN" by enhancing the support system for stable VTuber activities. Secondly, we will implement numerous measures to create excitement from a fan's perspective. In addition, we will work on expanding the group's activities, including increasing the number of VTubers.
Quarterly Operating Profit Rate Trend
The cost aspect for the third quarter of the fiscal year ending April 2024 was worse than expected, mainly due to the expenses of the "Nijisanji Fest." The direct variable cost rate, represented by the red broken line in the slide, has significantly increased due to unexpected costs.
One reason for the high costs of the "Nijisanji Fest" is its event format, which includes parts that can be enjoyed with just an admission fee, leading to a heavy cost structure due to labor and other factors.
The format of the "Nijisanji Fest" event is essentially once a year, so these costs are not recurrent. However, optimizing event costs has been an ongoing issue, and we are reaffirming the need to address it.
In other areas, primarily commerce, the cost structure has improved compared to the previous quarter. Despite this, we have been actively working on optimizing overall costs, including a price revision of some official merchandise starting in February 2024.
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