TSUBURAYA FIELDS HOLDINGS INC.

Business Details

Tsuburaya Productions Co., Ltd. owns IP such as "Ultraman" and generates license, merchandising, video, and event income both domestically and overseas. The company handles everything from the planning, production, and distribution of visual works to merchandising and advertising licensing. Domestically, the company is promoting commemorative projects for the "60th anniversary of the Ultraman series broadcast," which has progressed steadily, while a sharp decline in license income in the Chinese market has weighed on overall results. Although positioned as a driver of the Group's growth potential, restructuring the earnings structure remains a challenge.

Recent Overview

License income in China plunged 51.6%, causing segment operating profit to fall 67.0% to ¥934 million

Full-year segment revenue for FY2026 (ending March 2026) was ¥13,874 million (down 15.4% year on year), and operating profit was ¥934 million (down 67.0% year on year). The main cause was a decline in license income in the Chinese market to ¥2,557 million (down 51.6% year on year), marking the first revenue decline in the past 10 years (calendar-year basis). Domestically, commemorative projects for the "60th anniversary of the Ultraman series broadcast" progressed steadily, with revenue of ¥5,003 million (up 6.4% year on year), remaining solid. Video/event income was ¥2,964 million (up 1.0% year on year), maintaining roughly the same level as the prior year. Looking ahead to the next period, seven new licensee contracts have already been secured in April as the company works to rebuild its position in the Chinese market.

Key Products

Growth Drivers

• Acceleration of diversified exposure and enhancement of added value through various partnerships accompanying the full-scale rollout of commemorative projects for the "60th anniversary of the Ultraman series broadcast"
• Expansion of "Ultraman" transaction volume in the domestic character merchandise market (building a new business model to raise the current level of roughly ¥15.0 billion to a level comparable with China)
• Strengthening of the business foundation through enhanced cooperation with local partners in China (seven new licensee contracts already secured in April)
• Strengthening of strategic partnerships with the most trusted licensees to expand licensing and merchandising in new categories
• Establishment as an "IP growth platformer" by platformizing the supply chain and Asia expansion capabilities built around the company's own IP
• Continued revenue growth in the video and event field in China, including video distribution, events in Shanghai, and new paid stage performances

Risks

• Risk that the sharp decline in license income in the Chinese market (down 51.6% year on year for full-year FY2026, ending March 2026) will continue
• Risk of prolonged stagnation in segment earnings if the structural factors behind China's first revenue decline in the past 10 years (calendar-year basis) are not resolved
• Risk that the construction of a new business model will not proceed as planned given that the domestic market transaction volume currently remains at only about one-tenth of the Chinese market's
• Risk of recurrence of the failure to achieve profit targets seen under the previous medium-term management plan (the new three-year medium-term management plan targets operating profit of ¥3.0 billion for the Content & Digital Business)
• Risk of deterioration in the business environment in the Chinese and Asian markets due to geopolitical risk and policy trends
• Weakening of the earnings structure, as indicated by the sharp decline in segment operating margin (17.3% in the prior period to 6.7% in the current period)