I'm looking at the real numbers from Q3 and before
~10bil yen in the first 3 qtr of 2022 accounting for 67-68 million USD revenue
~3.136 bil yen operating income
~1.23 bil yen administration and sales expenses
I don't know their accounting standard. I don't think the cost to actually produce the characters (art, rig) and liver compensation (I assume they take the whole lot then pay the liver split as a salary) are able to be deduced here as we are missing a line item for profit split/liver comp which should be the vast majority of their expenses - so let's say in these 3 qtr they spent Revenue - Sales expense - operating income = roughly 6.7 billion yen in a combined bucket of liver comp, artist payments etc etc
Interestingly enough let's assume for ease that every niji liver has a 50% split with the company (platform split wouldn't even make it to revenue line) then based on the revenue we can guess approximately 5b yen spent compensating livers
super napkin math here - that means the total production of everything paid for (is this accrual or cashflow? it's horseshit accounting shoved down the throats of clueless investors so that must mean accrual) such as models, outfits, equipment, comes down to around 1.6-1.7b yen
This bucket of 1.6b will also include an unknown amount of amortization, depreciation of streaming/3D gear/rent/merch production cost. I can't tell you how they paid artists in this time period as livers debuted during this time may have been rigged and paid for before. However, given how much merch was pumped out this year, one might guess that the prod cost of their merch cannot occupy a very large proportion of their expenses, something that makes sense based on their practice of giving everybody except luxiem the same generic acrylics, which then benefits from streamlining and scale
Very very napkin math bros. Many assumptions such as livers not footing any personal cost for merch. But we know from the numbers themselves that for Q1-Q3 they operated at 12% operating margin which is within what we would consider healthy.
Accounting anons please check my napkin math it's been too many years.
