ENVALITH
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TV TOKYO Holdings Corporation

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TV TOKYO Holdings Corporation9413

Business

TV TOKYO Holdings Corporation is a certified broadcast holding company centered on TV TOKYO Corporation (launched in 1964). Comprising 15 consolidated subsidiaries and 5 affiliated companies, it operates three segments: Terrestrial & BS Broadcasting Business, Animation & Streaming Business, and Shopping & Other Business. In terrestrial broadcasting, the company relies primarily on time and spot advertising revenue, supplying programming nationwide through the TXN 6-station network. In the Animation & Streaming Business, the company leverages powerful IP such as NARUTO to develop overseas game adaptations, merchandising, and streaming rights sales, driving expansion of non-broadcast revenue. Economic news coverage, leveraging its capital relationship with Nikkei Inc., also serves as a differentiating factor. Consolidated net sales for FY2026 (ending March 2026) reached a record high of ¥164,915 million.

Business Model

The company sells time and spot advertising slots on terrestrial and BS broadcasts through advertising agencies to secure stable revenue, while multiplying earnings by expanding produced content IP into secondary uses such as sales to streaming platforms (AVOD/SVOD), overseas game adaptations and merchandising of animation, events, and film investments. In FY2026 (ending March 2026), both the Animation Division (¥27,219 million) and the Streaming Business Division (¥13,908 million) recorded all-time highs, expanding the proportion of non-broadcast revenue.

Company Strengths

In FY2026 (ending March 2026), revenue from the Animation Division rose 17.8% to a record ¥27,219 million. Overseas online game deployment and merchandising of NARUTO and BORUTO performed well in China, Southeast Asia, Europe/US, and the Middle East. Multiple powerful IPs accumulated over many years support stable growth in overseas revenue, forming an asset that is difficult for competitors to imitate in a short period.

Economic news programs such as "News Morning Satellite," "WBS," and "NIKKEI NEWS NEXT" are produced and broadcast leveraging collaboration with Nikkei Inc., another affiliated company. Paid membership revenue from the economic video streaming service "TV TOKYO BIZ" is also expanding, establishing a unique reach to business professionals with strong interest in economic information.

At the end of FY2026 (ending March 2026), the equity ratio stood at 68.9%, and the interest-bearing debt ratio was an extremely low 4.1% of total assets. Cash and cash equivalents reached ¥45,156 million (approximately 3.3 months' worth of revenue), and the interest coverage ratio was 275.7 times. A financial structure that is nearly debt-free enables the company to pursue growth investment and shareholder returns simultaneously.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales reached ¥164,915 million (up 5.8% year on year), operating profit reached ¥11,402 million (up 46.4% year on year), and profit attributable to owners of parent reached ¥7,700 million (up 27.6% year on year), setting record highs across all metrics. Operating profit in the Animation & Streaming Business expanded sharply by 55.0% to ¥6,587 million, exceeding the profit contribution of the Terrestrial & BS Broadcasting Business (¥5,550 million). The shift away from dependence on the broadcasting business is now clearly reflected in the numbers, and a qualitative transformation of the earnings structure is underway.

ROE for FY2026 (ending March 2025) improved to 7.4% (from 6.0% in the previous period), approaching the medium-term target of 8% (to be achieved in the latter half of the 2020s). Meanwhile, the company's forecast for FY2027 (ending March 2027) calls for operating profit of ¥11,500 million (up 0.9% year on year), indicating a significant slowdown in growth. Structural factors that continue to cap the upside for profit include rising production costs associated with an increase in new animation titles (total content production costs reached ¥56,857 million, the highest level in five periods) and rising personnel expenses (a wage increase of approximately 4.5%, centered on younger employees, is planned for FY2026 as well).

The Shopping & Other Business saw significant deterioration, with net sales of ¥16,818 million (down 2.1% year on year) and operating profit of ¥453 million (down 33.8% year on year). At the mainstay TV TOKYO Shopping, a rebound decline from the previous year's hit products coincided with sluggish sales of daily necessities and food items amid rising prices. As external factors continue to see price increases squeeze personal consumption, there is also an inherent risk of structural contraction in the TV shopping market, which could become a drag on improving profitability for the group as a whole.

Growth Strategy

Evolving into a global IP media company "TV TOKYO", expanding animation, streaming, economic news, and proprietary IP internationally

In addition to existing IPs such as NARUTO and BORUTO, the company is increasing the number of new anime titles and accelerating game development, merchandising, and streaming in China, Southeast Asia, Europe/US, and the Middle East. Revenue from the Animation Division reached a record high of ¥27,219 million in FY2026 (ending March 2026), with a growing track record in overseas expansion.

The company aims to improve capital efficiency by setting a policy of a dividend payout ratio target of around 35% and total shareholder return ratio of around 40%, linked to profit growth. ROE improved to 7.4% in FY2026 (ending March 2026) (from 6.0% in the previous fiscal year), and ROE for the final year of the medium-term management plan (FY2027, ending March 2027) is projected at 7.9%, approaching the 8% target.

A growth investment framework of approximately ¥20.0 billion has been set, funded by total operating cash flow over the three-year period. Key focus areas are "domestic and overseas expansion of animation and streaming businesses," "R&D in cutting-edge technologies such as AI and virtual production," and "strengthening content production capabilities." Cash flow used in investing activities in FY2026 (ending March 2026) was ¥5,253 million (up from ¥2,015 million in the previous fiscal year), marking a shift into the investment phase.

In April 2026, the company opened an in-house university for all group employees, offering practical programs directly linked to work, such as AI and global IP. In FY2026, wage increases of approximately 4.5%, centered on younger employees, were implemented, and the starting salary for new graduates was raised to ¥330,000. The company aims to strengthen its content production and business development capabilities by attracting and retaining talented personnel.

The company is promoting the sale of global streaming rights for proprietary drama IPs such as "Kodoku no Gourmet" and "Synanthrope," expanding AVOD advertising revenue, and increasing paid subscribers to TV TOKYO BIZ. Revenue from the Streaming Business Division continued to grow strongly in FY2026 (ending March 2026), up 18.3% to ¥13,908 million, increasingly establishing itself as a pillar of non-broadcasting revenue.

Last updated: July 19, 2026