IG Port's Quarterly Report Shows Deficit Despite Increase in Sales
posted on by Karen Ressler
IG Port, the parent company of animation studios Production I.G, Wit Studio, XEBEC, Signal.MD, and publisher Mag Garden, released a report for the first quarter of this fiscal year (June 1-August 31) on Friday. The report showed a net loss for the period.
The company reported consolidated sales of 2.1 billion yen (about US$18.7 million), a 67.4% increase compared to the same period last year. However, the company reported an operating loss of 226 million yen (US$2.01 million), an ordinary loss of 198 million yen (US$1.77 million), and a net loss of 178 million yen US$1.59 million). The company had reported net profits for the same period last year.
The shift is particularly pronounced in IG Port's video production companies. Production I.G, Wit Studio, XEBEC, and Signal.MD had total sales of 1.539 billion yen (US$13.7 million), 233.5% of last year's total. However, it had a net loss of 240 million yen (US$2.14 million). The company cited the increased costs of producing high quality content.
IG Port's publishing industry saw a 37.6% year-on-year decrease in sales to 280 million yen (US$2.5 million), and a 90.5% decrease in profits to 11 million yen (US$98,000). The manga Dragon, Ie o Kau. (pictured left) was a particularly successful title.
IG Port saw a 17.4% increase in sales for its copyright industry, to 226 million yen (US$2.02 million). The industry turned a profit of 47 million yen (US$419,000). Key franchises included Kuroko's Basketball, Ghost in the Shell, Attack on Titan, and Kabaneri of the Iron Fortress.
For other industries, including merchandise and smartphone games, IG Port had sales of 53 million yen (US$473,000), a 22.1% decrease from last year, and a net loss 27 million yen (US$241,000).
IG Port has not modified its earlier earnings forecast: it expects to have sales of 9.592 billion yen (US$85.5 million), an operating profit of 561 million yen (US$5 million), an ordinary profit of 610 million yen (US$5.44 million), and a net profit of 365 million yen (US$3.25 million) over the next year