TOHO CO.,LTD.

Business Details

The Movie Business consists of three businesses: (1) Film Distribution Business (domestic and international film distribution and licensing of visual content distribution rights by Toho Co., Ltd. and Towa Co., Ltd.), (2) Movie Exhibition Business (nationwide operation of 725 screens through TOHO Cinemas Ltd. and others), and (3) Visual-Related Business (studio and production operations by TOHO Studios Co., Ltd., and art production by Toho Art Co., Ltd. and Toho Stage Co., Ltd.). It is the core segment, accounting for approximately 49% of consolidated operating revenue, with its competitive edge derived from the multi-faceted development of proprietary IP and strong box-office capability.

Recent Overview

Film distribution and exhibition posted double-digit revenue growth, but profit margins declined due to the reversal of large-scale projects in the Visual-Related Business.

In the first quarter of FY2027 (ending March 2027) (March to May 2026), the Movie Business as a whole recorded operating revenue of ¥43,381 million (up 7.7% year on year) and operating profit of ¥9,598 million (up 6.1% year on year). The Film Distribution Business achieved operating revenue of ¥14,315 million (up 10.2% year on year) driven by major hits such as "Detective Conan: The Million-dollar Pentagram" (theatrical version). The Movie Exhibition Business performed strongly, with operating revenue of ¥25,406 million (up 14.7% year on year) against a backdrop of a 9.4% increase in attendance. Meanwhile, the Visual-Related Business declined sharply, with operating revenue of ¥3,659 million (down 28.8% year on year) and operating profit of ¥342 million (down 61.4% year on year), due to the reversal of a large-scale project recorded in the same period of the prior year. "TOHO Cinemas Oimachi" (8 screens) opened on March 28, 2026, expanding the nationwide screen count to 725.

Key Products

Growth Drivers

• Increased revenue in the Film Distribution Business (operating revenue of ¥14,315 million, up 10.2% year on year) driven by major hit domestic films such as "Detective Conan: The Million-dollar Pentagram" (theatrical version)
• Increased revenue in the Movie Exhibition Business (operating revenue of ¥25,406 million, up 14.7% year on year) driven by the recovery in cinema attendance (12,005 thousand people, up 9.4% year on year)
• Contribution to Towa Co., Ltd.'s distribution revenue from hit foreign films such as "The Super Mario Galaxy Movie" and "Wicked: Forever"
• Expansion of screen count (from 717 to 725) and boost to box-office revenue from the opening of "TOHO Cinemas Oimachi" (March 28, 2026)
• Continued steady operations from the integrated management of production and studio operations at TOHO Studios Co., Ltd.

Risks

• Risk of earnings volatility due to widening disparities in box-office performance among released films (dependence on hit titles)
• Risk of fluctuation in large-scale project orders within the Visual-Related Business (the reversal effect from a 28.8% year-on-year decline has materialized)
• Risk of market contraction due to changing cinema-going habits amid the spread of video streaming and long-term domestic population decline
• Slowdown in the pace of new cinema complex openings due to rising construction costs and a decrease in suitable sites
• Cost pressure on the Visual-Related Business from rising labor costs and material/equipment prices
• Impact on consumer entertainment spending from macroeconomic uncertainty, including Middle East tensions and volatility in financial and capital markets