Tsuburaya Fields Upgrades FY2027 Forecast, Plans Special Payout

Tsuburaya Fields’ first quarter for the fiscal year ending March 2027 saw revenue fall 21.3% year on year to ¥43.7 billion, operating profit decline 11.9% to ¥6.9 billion, and net profit drop 15.0% to ¥4.7 billion. The company, however, lifted its full-year forecasts, raising revenue by 9.8% and operating profit by 18.4% from its May projections. Management noted that the Q1 operating profit already represents roughly 35% of the new full-year target, putting it on track for record earnings. Additionally, a ¥70 per share special dividend for Ultraman’s 60th anniversary was announced, bringing the annual dividend to ¥140, a twofold increase.

The Amusement segment posted revenue of ¥40.0 billion (-22.6% YoY) and operating profit of ¥7.0 billion (-14.9% YoY). Pachinko unit sales rose 7.1% to 42,522, but pachislot volumes tumbled 55.0% to 25,004, dragging total unit sales down 29.1% to 67,526. The decline was attributed to the high base from last year’s hit titles and a planned shift of major model deliveries to the second quarter and beyond. Operating profit in the segment still reached about 35% of the full-year plan.

The Content & Digital segment recorded revenue of ¥3.4 billion (-4.9% YoY) while operating profit more than doubled to ¥920 million (+107.5% YoY). Core subsidiary Tsuburaya Productions saw its operating profit expand 2.4 times to ¥778 million, driven by robust licensing income from China and strong domestic merchandise and event sales.

Total assets at the end of the first quarter stood at ¥110.4 billion, up ¥7.1 billion from the prior fiscal year-end, mainly due to higher trade receivables and work in progress. Cash and deposits fell to ¥26.4 billion. Liabilities rose ¥6.7 billion to ¥43.9 billion, while net assets increased to ¥66.6 billion, lifting the equity ratio to 55.2%.

On shareholder returns, the company declared a milestone special dividend of ¥70 per share for the second quarter to commemorate the 60th anniversary of Ultraman. Combined with the year-end dividend of ¥70, the annual payout will be ¥140 per share, double the previous year’s ¥70. Management described it as the “largest special dividend since the company’s founding” and indicated it intends to continue such a payout as an interim dividend from the next fiscal year onward.

The company revised its full-year consolidated forecasts upward significantly from the initial plan released in May. The upgraded projections call for revenue of ¥205.3 billion (+17.9% YoY), operating profit of ¥22.5 billion (+28.9% YoY), and net profit of ¥15.0 billion (+14.9% YoY), all setting new records. The Amusement segment is benefiting from already sold-out models slated for Q2 delivery and strong orders for Q3 mainstay machines, reflecting structurally improved profitability. The Content & Digital segment is also outperforming its plan thanks to expansion in domestic licensing and merchandise.

At the same time, the mid-term plan through March 2029 was revised upward, setting new targets of ¥230.3 billion in revenue and ¥28.5 billion in operating profit for the final year.

The company’s financial report flags external risks including shifts in consumer sentiment due to inflation, geopolitical tensions in the Middle East, and volatility in financial markets. In the IP and content space, the rapid spread of generative AI, the diversification of distribution platforms, and shortening content consumption cycles are seen as pressing challenges. The Amusement business remains heavily dependent on hit titles, with constant risk of downward revisions to sales plans. Pachislot unit sales plunged 55% compared to the same quarter last year, and the ongoing transition to smart pachislot machines and potential regulatory changes could sway future performance. Reliance on the Chinese licensing market also poses geopolitical and economic risks.

The group’s new mid-term plan, covering fiscal 2026 through 2028, has been revised upward across all periods as progress outpaced initial targets. In Content & Digital, structural reforms implemented last year are paying off, with the launch of an in-house domestic merchandising business and collaborations with major IP holders gaining traction. The Amusement segment is beginning to leverage combined strengths in sales networks, procurement, and in-house development. The segment has also been renamed from “Amusement Equipment” to simply “Amusement” to signal an evolution into a comprehensive entertainment business encompassing services beyond gaming machines. Shareholder returns are being bolstered with the special Ultraman 60th anniversary dividend, doubling the annual payout to ¥140 per share this fiscal year.