Tsuburaya Fields Lifts Full-Year and Mid-Term Profit Targets
Tsuburaya Fields (2767) has raised its consolidated earnings forecast for the fiscal year ending March 2027 and revised its mid-term plan upwards. Boosted by sellouts of pachinko machines and a recovery in the Chinese market, revenue is now seen rising 9.8% to ¥205.3 billion, with operating profit jumping 18.4% to ¥22.5 billion. The upgrades raise expectations for a record-breaking year.
Full-Year Forecast Upgraded Across the Board, Setting New Profit Records
The revision lifts all profit targets from the initial outlook announced in May 2026.
| (¥ millions) | FY2026 Actual | Previous Forecast (A) | Revised Forecast (B) | Change (B-A) | % Change |
|---|---|---|---|---|---|
| Revenue | 174,142 | 187,000 | 205,300 | +18,300 | +9.8% |
| Operating Profit | 17,455 | 19,000 | 22,500 | +3,500 | +18.4% |
| Ordinary Profit | 17,751 | 19,150 | 22,650 | +3,500 | +18.3% |
| Net Profit | 13,050 | 13,500 | 15,000 | +1,500 | +11.1% |
| EPS (¥) | 209.70 | 216.86 | 240.95 | +24.09 | +11.1% |
Revenue is forecast to climb 17.9% from the previous year, with operating profit up 29.0%, signaling robust expansion. The operating margin improves from 10.0% to 11.0%, underscoring enhanced profitability. The sharp upward revision at every level is likely to beat market expectations and could serve as a catalyst for the stock.
Segment Trends: Content & Digital Surges, Amusement Remains Solid
The upward revision in the Content & Digital segment stands out.
| Segment | Revenue (Revised) | vs. Previous | Operating Profit (Revised) | vs. Previous |
|---|---|---|---|---|
| Content & Digital | 19,000 mn | +24.2% | 4,500 mn | +50.0% |
| Amusement | 185,000 mn | +8.8% | 22,000 mn | +10.0% |
Operating profit in Content & Digital is exploding 382% higher than the prior year’s ¥930 million. Strong domestic in-house MD and licensing, along with a recovery in the Chinese market, have boosted performance. Meanwhile, the Amusement segment benefits from sellouts of machines slated for second- and third-quarter deliveries and structural profitability gains from the distribution platform, sustaining a high operating margin of 11.9%.
Mid-Term Plan Also Revised Upward for All Years, Resetting the Growth Trajectory
The numerical targets of the “Group Mid-Term Plan FY2026-2028” have been thoroughly reviewed.
| Fiscal Year | Revenue (Revised) | vs. Initial | Operating Profit (Revised) | vs. Initial |
|---|---|---|---|---|
| FY3/2027 | 205,300 | +9.8% | 22,500 | +18.4% |
| FY3/2028 | 215,300 | +11.6% | 25,500 | +17.5% |
| FY3/2029 | 230,300 | +14.0% | 28,500 | +14.0% |
While the basic policies and key strategies remain unchanged, cumulative three-year operating profit has been topped up by roughly ¥8 billion, giving clearer line of sight to achievement. The comprehensive revision of the mid-term plan is seen as a vote of confidence from management.
Reasons for Revision and Outlook
The upgrades are driven mainly by “sellouts of scheduled machine deliveries” and “structural profitability improvement via the distribution platform” in Amusement, and by “solid domestic in-house MD and licensing” along with “earnings recovery in the Chinese market” in Content. In particular, revenge spending following the end of China’s zero-COVID policy has provided tailwinds.
The company says it will “continue to steadily implement measures and strive to enhance corporate value,” while noting changes in market conditions as a future risk factor. For now, the plan appears highly achievable, with room for further upside.
Analyst take
From an analyst’s perspective, attention is on the qualitative improvement in the Amusement segment’s earnings base, as reforms to the pachinko machine distribution platform take hold. Meanwhile, the high growth of the Content business may increase exposure to China, warranting caution over geopolitical risks. The mid-term plan upgrade is positive, but targets out to FY3/2029 should factor in potential currency and regulatory impacts.