IG Port Revises Earnings Forecast Downward, Reports Earnings
posted on by Rafael Antonio Pineda
IG Port — the parent company of animation studios Production I.G, Wit Studio, XEBEC, Signal.MD, and publisher Mag Garden — revealed on Friday both its new earnings forecasts through the end of its current fiscal year (which ends on May 31, 2019), and its earnings report through the third quarter of the fiscal year (which ended on February 28, 2019).
The company has revised its earnings forecast for the fiscal year from consolidated sales of 9.751 billion yen (about US$87.11 million) to 9.062 billion yen (about US$80.95 million). IG Port has revised its predicted operating loss from 157 million yen (about US$1.40 million) to 434 million yen (about US$3.87 million), and its net loss from 200 million yen (about US$1.78 million) to 209 million yen (about US$1.87 million).
The lowered forecasts are a result of lower than expected earnings, the delay of deliveries of some video content to the next quarter, and lower than expected sales of some manga.
The company reported total consolidated sales of 6.696 billion yen (about US$59.82 million, a 4.4% increase from last year) for the nine months ending February 28, with an operating loss of 517 million yen (about US$4.61 million), an ordinary loss of 518 million yen (about US$4.62 million), and a net loss of 507 million (about US$4.52 million).
The company's video production business for both its live-action and anime productions reported consolidated sales of 4.691 billion yen (about US$41.26 million, a 30.1% increase from last year) for the nine months ending February 28, but an operating loss of 531 million yen (about US$4.74 million). The company places the reason for the loss on the cost of CG production and outsourcing costs, as well as shortages in staff resulting in extended production times.
The company's publishing business reported consolidated sales of 778 million yen (about US$6.94 million, a 39.8% decrease from last year) for the nine months ending February 28, and an operating profit of 54 million yen (about US$482,300, an 84.5% decrease).
The company's rights management business reported consolidated sales of 1.053 billion yen (about US$9.40 million, a 20.1% decrease) for the nine months ending February 28, with an operating profit of 36 million yen (about US$321,500, a 94.7% decrease).
IG Port and and Internet service provider NTT Plala announced a capital partnership last May that aims to produce new content. As part of the partnership, NTT Plala acquired 4.98 percent of IG Port's outstanding shares.
Production I.G and Wit Studio are currently in a comprehensive business alliance with Netflix. With the tie-up, Netflix will co-produce anime episodes from the studios and stream them in 190 countries.
IG Port recently transferred most of the production operations of its Xebec production studio to Sunrise on April 1. The cost of the transfer to Sunrise was 300 million yen (about US$2.69 million), and was settled on the same date.