WOWOW Inc. (the "Company") recorded non-operating income (foreign exchange gains) for the first six months of the fiscal year ending March 2027 (April 1, 2026 to September 30, 2026).
In addition, differences have arisen between the earnings forecasts (consolidated and non-consolidated) for the first six months of the fiscal year ending March 2027 announced on May 15, 2026 and the actual results announced today, and the Company has also revised its full-year earnings forecasts (consolidated and non-consolidated) for the fiscal year ending March 2027 as follows.
There is no change to the dividend forecast from the previously announced forecast.
1.Non-operating Income (Foreign Exchange Gains)
For the first six months of the current consolidated fiscal year, the Company recorded foreign exchange gains of 494 million yen as non-operating income due to fluctuations in exchange rates. These gains arose mainly from forward exchange contracts on foreign currency-denominated liabilities and from the revaluation of foreign currency-denominated liabilities.
2. Differences Between Forecast and Actual Results for the Second Quarter (Interim Period) of the Fiscal Year Ending March 2027 (April 1, 2026 to September 30, 2026)
（1）Consolidated
| Revenue | Operating Income | Ordinary Income | Attributable to Owners of Parent Net Income |
Per Share Net Income |
|
| Previously announced forecast (A) | millions of yen 36,300 |
millions of yen 740 |
millions of yen 980 |
millions of yen 640 |
Yen 22.57 |
| Results (B) | 35,607 | 1,266 | 1,955 | 979 | 34.54 |
| Difference (B-A) | -692 | 526 | 975 | 339 | |
| Difference (%) | -1.9 | 71.1 | 99.5 | 53.0 | |
| (Reference) Actual consolidated results for the previous fiscal year (Second Quarter of the Fiscal Year Ended March 2026) |
37,566 | 1,631 | 2,141 | 1,447 | 51.15 |
-
（2）Non-consolidated
| Revenue | Ordinary Income | Net Income | Per Share Net Income |
|
| Previously announced forecast (A) | millions of yen 29,200 |
millions of yen 880 |
millions of yen 620 |
yen 21.86 |
| Results (B) | 29,033 | 1,969 | 1,380 | 48.66 |
| Difference (B-A) | -166 | 1,089 | 760 | |
| Difference (%) | -0.6 | 123.8 | 122.6 | |
| (Reference) Actual consolidated results for the previous fiscal year (Second Quarter of the Fiscal Year Ended March 2026) |
30,556 | 1,792 | 1,223 | 43.24 |
-
3.Revision of Full-Year Earnings Forecast for the Fiscal Year Ending March 2027 (April 1, 2026 to March 31, 2027)
（1）Consolidated
| Revenue | Operating Income | Ordinary Income | Attributable to Owners of Parent Net Income |
Per Share Net Income |
|
| Previously announced forecast (A) | millions of yen 74,500 |
millions of yen 750 |
millions of yen 1,000 |
millions of yen 600 |
yen 21.14 |
| Results (B) | 82,200 | -5,200 | -4,300 | -2,500 | -88.10 |
| Difference (B-A) | 7,700 | -5,950 | -5,300 | -3,100 | |
| Difference (%) | 10.3 | - | - | - | |
| (Reference) Actual consolidated results for the previous fiscal year (Fiscal Year Ended March 2026) |
77,124 | 1,475 | 2,276 | 1,296 | 45.80 |
-
（2）Non-consolidated
| Revenue | Ordinary Income | Net Income | Per Share Net Income |
|
| Previously announced forecast (A) | millions of yen 59,700 |
millions of yen 380 |
millions of yen 260 |
yen 9.16 |
| Results (B) | 60,600 | 500 | 200 | 7.05 |
| Difference (B-A) | 900 | 120 | -60 | |
| Difference (%) | 1.5 | 31.6 | -23.1 | |
| (Reference) Actual consolidated results for the previous fiscal year (Fiscal Year Ended March 2026) |
63,233 | 1,579 | 831 | 29.38 |
-
4.Reasons for Differences and Revisions
（1）Differences Between Forecast and Actual Results for the second quarter (Interim Period) of the Fiscal Year Ending March 2027
(Consolidated)
Revenue fell short of the previous forecast as membership revenue and external contracts in the production business of the Media Content segment, and external contracts in the Telemarketing segment were below expectations.
Operating income exceeded the previous forecast due mainly to a decrease in non-consolidated expenses.
Ordinary income and net income exceeded the previous forecast due to the increase up to the operating income, as well as the foreign exchange gains described in "1. Non-operating Income (Foreign Exchange Gains)".
(Non-consolidated)
Revenue fell short of the previous forecast due to a decrease in membership revenue.
Ordinary income and net income exceeded the previous forecast as some expenses, such as program costs and advertisement expenses, were deferred to the third quarter or later, and due to the foreign exchange gains.
（2）Revision of Full-Year Earnings Forecast for the Fiscal Year Ending March 2027
(Consolidated)
On October 1, 2026, the Company succeeded to the entertainment video content distribution business "Lemino" from NTT DOCOMO, Inc. ("NTT DOCOMO"), and on the same date established WOWOW Lemino Inc. ("WOWOW Lemino"), a joint venture with NTT DOCOMO.
Revenue is expected to exceed the previous forecast as WOWOW Lemino became a consolidated subsidiary from the third quarter.
As for profit, while the existing businesses are generally progressing in line with the initial plan, the Company expects profit to fall short of the previous forecast because WOWOW Lemino, which became a consolidated subsidiary in the third quarter, is projected to post an operating loss as a result of costs invested in strengthening content and marketing initiatives aimed at business expansion.
(Non-consolidated)
Revenue is expected to exceed the previous forecast due to an increase in intra-group transactions.
Ordinary income is expected to exceed the previous forecast due to the recording of foreign exchange gains and other items, despite an anticipated increase in expenses resulting from increased intra-group transactions.
Net income is expected to fall short of the previous forecast due to an increase in income taxes - deferred.
In addition, as a result of succeeding to the entertainment video content distribution business "Lemino" from the third quarter and reviewing the WOWOW subscription plan, the Company has revised its subscription plan forecast for the fiscal year ending March 2027 as follows.
| Net New Subscriptions | Net Cumulative Subscriptions | |
| Previously Announced Forecast (A) | Thousands -110 |
Thousands 2,057 |
| Revised Forecast (B) | 3,333 | 5,500 |
| Change (B-A) | 3,443 | 3,443 |
| (Reference)Previous period result (Fiscal Year Ended March 2026) |
-193 | 2,167 |
*The Company took over the entertainment video content distribution business "Lemino" from the third quarter.
Accordingly, while the "Previous Forecast (A)" stated the number of WOWOW subscribers, the "Revised Forecast (B)" states the number of subscribers combining the paid members of WOWOW and WOWOW Lemino.
* Actual figures are rounded to the nearest thousand.
(Note) The above forecasts are based on information available to the Company as of the date of this release and on certain assumptions deemed reasonable. Actual results may differ significantly due to various factors.
End
| Note : This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. |