Management Policy
Due to rapid changes in the external environment such as intensifying competition with video streaming services and changes in customers' viewing trends, WOWOW Inc. (the "Company") has reduced the number of subscribers and its performance has been sluggish.
In response to the circumstance, in FY2024 the Company worked to strengthen the growth strategy, financial strategy, non-financial strategy and improvement of IR, which we announced on April 26, 2024. However, the Company has not been able to achieve ROE that exceeds the cost of equity (CAPM)* (recognized to be around 6%) due to such factors as a decline in membership for 6 consecutive fiscal year and a decline in income resulting from the recording of Extraordinary Losses.
*The Company uses the cost of equity (CAPM method = Capital Asset Pricing Model).
Under our Medium-Term Management Plan (FY2025-2029), the Company aims to grow in two areas: membership area (BtoC), which provides services such as Broadcast/Transmitted service, EC and events, and other than membership area (BtoB), which provides marketing support, content production, and production business, in order to become a company providing "enthusiasms" for membership's daily life.
In an increasingly competitive environment, in order to quickly shift its earnings structure toward medium- and long-term growth, the Company launches new transmission service and expand EC service and multi-layered service with promoting more efficient broadcasting service. At the same time, the Group will invest to strengthen existing businesses and create new businesses, aiming to increase ROE and improve PBR.
（Membership area (BtoC)）
・Promotion of efficiency in the broadcasting service
・Launched new transmission service following WOWSPO
・Expand earnings by business growth of EC and multi-layered services
・Develop new businesses in line with lifestyles
（Other than membership area (BtoB)）
・To expand business, including marketing support, content production, and production operations
・Promote investment, potentially utilizing interest-bearing debt
・Reduce cross-shareholdings
・Continue to pay stable dividends
・Increase human capital investment to support sustainable growth
・Enhance sustainability management conscious of the SDGs and DEI*
*Diversity, Equity and Inclusion
・Expand opportunities for dialogue with shareholders and investors through investor briefings, IR meetings, etc.
・Enhancement of dissemination through various IR tools
・Response to English disclosure
| Activity | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Results briefings for institutional investors, analysts and reporters | 4 | 4 | 4 |
| IR meetings | 7 | 20 | 22 |
| Activity | Correspondents |
|---|---|
| Results briefings for institutional investors, analysts and reporters | Representative Director, President & CEO; Board Director, Senior Managing Executive Officer |
| IR meetings | Board Director, Senior Managing Executive Officer responsible for Corporate Management, Finance & Accounting; General Manager of Corporate Management Division; Director of Corporate Communications & Investor Relations Department |
| Details | Frequency | Status |
|---|---|---|
| IR Activity Reports | 4/year | Comments from dialogues with shareholders after results announcements are collected and reported at business plan progress report meetings |
・Subscription status and performance outlook
・Actions to Achieve Management Conscious of Cost of Capital and Stock Price(Capital allocation and ROE)
・Withdrawal from unprofitable businesses following the termination of 4K channel broadcasting
・Investment in Growth Areas
・Shareholders Return Policy