For the fiscal year ended March 31, 2019, the Avex Group reported net sales of ¥160,126 million (down 2.0% from the previous fiscal year), operating income of ¥7,089 million (up 2.2%) and net income attributable to owners of the parent of ¥2,354 million (down 9.5%). Despite higher sales of package products in the Music Business, net sales declined slightly year on year, mainly due to a drop in video distribution service subscribers in the Digital Business.
Operating income increased amid lower costs for the Avex headquarters building and a decline in selling, general and administrative expenses in the Music Business and other costs, but net income attributable to owners of the parent declined, reflecting impairment losses and loss on business liquidation booked under other expenses.
Regarding shareholder returns, Avex has a policy of paying a minimum annual dividend of ¥50 per share while targeting a consolidated payout ratio of at least 35%. In accordance with this policy, the Company distributed a dividend of ¥50 per share for the fiscal year ended March 31, 2019.
To generate growth over the medium and long term, the Avex Group is actively investing in the creation of hit content and teaming with up-and-coming partners in Japan and overseas to develop new businesses. The Group is also responding to changes in the market driven by new technologies and other trends by realigning its businesses and implementing Group-wide reforms to create the right environment for cultivating dynamic human resources. Those efforts have helped us establish a stable earnings base in the domestic market in existing Music, Anime & Visual Content, and Digital entertainment domains – the Group’s core business fields. However, the entertainment industry is moving into a new era, characterized by market growth driven by globalization and the emergence of new creatives who are harnessing the latest innovative technologies. In response to those trends, we are focusing on three areas – existing Entertainment Domain, Global Domain and Technology Domain – aiming to create powerful IP that helps us stay ahead in today’s new landscape. We are also targeting operating income of ¥20 billion in the fiscal year ending March 31, 2024.
By creating powerful IP that helps us stay ahead in today’s new landscape, we aim to provide wonder and excitement to people everywhere through entertainment. We look forward to your continued support and understanding as we take on new challenges.