Press Release Nippon Columbia Issues Notice of Consolidated
Total Page:16
File Type:pdf, Size:1020Kb
November 13, 2012 Press Release Nippon Columbia Issues Notice of Consolidated Business Results for Second Quarter of Fiscal Year Ending March 2013 Nippon Columbia Co., Ltd. (hereinafter the Company; Head Office: Minato-ku, Tokyo; Representative Director/President and Chief Operating Officer (COO): Yasuharu Hara) today gives notice that it has issued its consolidated business results indicating the Company’s overall performance for the period up to the second quarter of the fiscal year ending March 31, 2013 (April 1 ~ September 30, 2012). Consolidated Business Performance for Second Quarter FY2012 The Japanese music market continues to struggle in a difficult business environment. During the period from January to September 2012, the total production of music titles including music video titles increased by 7% compared with the same period in 2011. However, during the period from January to June 2012 (latest available information), actual sales of paid music downloads decreased by 25% compared with the same period in 2011 (Recording Industry Association of Japan). 1. Sales Revenue During the period of up to the second quarter ending March 31, the Company’s cumulative consolidated sales revenue totaled 6,513 million yen (a decrease of 3.5% compared with the same period of the previous fiscal year). Despite the contributions of animation-related music titles and of the Nintendo 3DS “Kobito Zukan Kobito Kansatsu Set” to sales in the Sales/Digital Distribution Business, there was a decline in digital distribution sales centered on J-Pop titles. Moreover, a downturn in sales by the Company’s US music production subsidiary due to postponements and cancellations of major releases also contributed to the overall decline in sales revenue. 2.Profit and Loss Regarding the profit & loss situation, in line with the favorable performance of the above-mentioned game title, in addition to higher than expected sales of high-profit-margin items such as sound source licensing income, and to decreases in selling and general administrative expenses, the Company recorded a consolidated operating profit for the period under review of 109 million yen (compared with a profit of 101 million yen for the same period of the previous fiscal year). In addition, the Company reported an ordinary profit of 95 million yen (compared with an ordinary profit of 98 million yen for same period of the previous fiscal year) and a net profit for the period under review of 66 million yen (compared with a net profit of 81 million yen for the same period of the previous fiscal year). November 13, 2012 The Company’s performance on a segment basis is as follows. <Sales/Digital Distribution Business> Although the Nintendo 3DS Kobito Zukan Kobito Kansatsu Set, which was released in July, made a significant contribution to over-the-counter sales, digital distribution sales centered on J-Pop titles continued to decline. As a result, this segment recorded sales revenue of 4,629 million yen (a decrease of 3.9% year on year). Also, in line with the decline in sales, this segment recorded an operating profit of 521 million yen (compared with a profit of 616 million yen for the same period of the previous fiscal year). <Direct Sales Business> The Company continued its business partnerships with Victor Entertainment Inc., and EMI Music Japan Inc., but in line with declining product sales to other mail order companies, this segment recorded sales revenue of 1,057 million yen (a decrease of 7.7% year on year). However, due to a recovery in high-profit-margin transactions with corporate clients involving the use of sound sources, the Company recorded an operating profit of 504 million yen (compared with a profit of 441 million yen for the same period of the previous fiscal year). <Other Businesses> The Other Businesses segment recorded sales revenue of 826 million yen (a decrease of 4.7% year on year) and an operating profit of 160 million yen (compared with a profit of 182 million yen for the same period of the previous fiscal year). The Columbia Group regards the achievement of continuous profitability as its most important business challenge, and to this end the Company will continue to implement a variety of measures that include concentrating management resources onto fields of strength and fields of growth, optimizing the size of the workforce, and cutting costs. The recorded music industry is continuing to experience a contracting market and a difficult overall environment. Despite this situation, the Company is striving to further improve its business efficiency and increase its profitability by continuing to concentrate its management resources on operations in the Sales/Digital Distribution Business, which is its core music production business, and the Direct Sales Business, which makes use of in-house produced sound sources. We have spun off the sales division into a 100% owned subsidiary, Columbia Marketing in October 2012 in order to quickly and effectively address the changing music market. November 13, 2012 Moreover, by building up its strategic partnership with Faith as a member of the Faith Group, the Company will promote approaches to new styles of music distribution in an effort to improve its line-up of music-related services and move forward with its plans to realize business synergies within the Faith Group. As a part of this effort, we have established Future Records KK as a joint venture company that engages in planning, production and management of copyrighted works related to artists, and this company has already debuted two artists: Rieko and PafeOke. Full Year Consolidated Business Result Forecast for FY2012 (Ending March 2013) The Columbia Group’s current forecast for FY2012 (the fiscal year ending March 2013) is for sales revenue of 15 billion yen, an operating profit of 350 million yen, an ordinary profit of 320 million yen, and a net profit of 280 million yen. These figures are unchanged from the forecast issued on May 11, 2012. Artists and Titles Making Major Contributions to Sales <Sales/Digital Distribution Business> ■ Music Products Kiyoshi Hikawa— Enka Meikyoku Collection 16 ~Sakura~, Sakura, Saigo to Kimeta Hito Dakara Eisaku Ohkawa— Onna Gawa Yusuke Hashiri— Kitaguni Ferry Minna Koi Shita Kayoukyoku Renai Hen, Minna Koi Shita Kayoukyoku Seishun Hen THE IDOLM@STER Series Tokumei Sentai Go-Busters Series Make-up feat. Shoko Nakagawa— Pegasus Fantasy ver. Omega Inai Inai Baa! Series 2012 Pop Hit March ~ Flying Get ~ Kaela Kimura— Mamireru Not yet— Suika Baby Tamurapan— new world Dresscodes— Trash Kuchu Bunkai Feat. Antenna Girl— Lumina Star Risa Yoshiki— Bokaro Ga Rival Ayano Uema— Utasha Furusato no Minyo Dai 52 Shu November 13, 2012 ■ Video Products Kiyoshi Hikawa— Hikawa Kiyoshi Special Concert 2011 Kiyoshikonoyoru Vol. 11 Inai Inai Baa! Series Miitsuketa! Series clammbon— 2011-11-3 Live at Ryougoku Kokugikan Kaela Kimura— Kaela Web Tour 2012@Budokan ■ Digital Distribution Kaela Kimura— Mamireru, Butterfly, Ring a Ding Dong Not yet— Suika BABY Yo Hitoto— Hanamizuki THE IDOLM@STER Series Tokumei Sentai Go-Busters Series ■ Video Game Products Nintendo 3DS Software Mamegoma Yoi Ko, Marui Ko, Genki na Ko! Kobito Zukan Kobito Kansatsu Set Wan Nyan Doubutsu Biyouin 2 <Direct Sales Business> Uta wa Yo ni Tsure, Showa Kayo Ogon Jidai Enka no Jidai ~Nakiwarai ~Ichiokunin no Enka/Kayokyoku~ Natsukashi no Terebi Shudaika Temashu Takumi Enka Hitosuji <Others> P&D (Production & Distribution) ◇ YOSHIMOTO R and C Co., Ltd. Pistol Takehara— ROUTE to ROOTS YU-A— DREAM YGA— Kari Onna Natsuko ◇ Ward Records Inc. Muddy Waters & the Rolling Stones— Live at the Checkerboard Lounge Chicago 1981 Freddie Mercury— Freddie Mercury The Great Pretender November 13, 2012 ■ Company Outline Company Name: Nippon Columbia Co., Ltd. Address: Edomizaka Mori Bldg., 4-1-40 Toranomon, Minato-ku, Tokyo Representative: Representative Executive Officer/President & COO Yasuharu Hara Business contents: Production, advertising and sales of music software, game software, visual products and artist management Paid-in capital: ¥1,000,000,000 URL: http://columbia.jp ■ For further information concerning this subject please contact: Nippon Columbia Co., Ltd. Chikayo Suzuki, Finance Division Telephone: 03-6895-9870 Facsimile: 03-6895-9116 Email: [email protected] ### .