Toei Animation Posts Major Profit Decline
Toei Animation, one of Japan’s largest animation studios, posted annual declines in both profit and revenue for the first three quarters of fiscal year 2006 in an earnings report released Thursday local time. Like many Japanese corporations, Toei’s fiscal year ends in March.
The company recorded about 14.6 billion yen ($121 million) in revenue over the three quarters, a 6.4-percent decrease from the same period in 2005, and 2.2 billion yen in operating profit, a 30.4-percent decrease year-on-year.
Net profit in the third quarter was about 1.4 billion yen, a 33.7-percent decrease from the previous quarter. Toei Animation’s average stock price over the first three quarters was about 103 yen, down from 313 yen in the first three quarters of 2005 and 342 yen at the end of March 2006.
Animeanime suggests a temporary dearth of theatrical releases and decreases in revenue from overseas, which last year benefited from a large number of game releases, are partially to blame for the downturn.