Asahi Broadcasting : Earnings for the Second Quarter of Fiscal 2022

Asahi Broadcasting Group Holdings Corporation

Financial Results Briefing for the Second Quarter of the Fiscal Year Ending March 2023

November 21, 2022

[Venue]	Webcast
[Speakers]	Susumu Okinaka	Representative Director and President
	Shinya Yamamoto	Representative Director and Vice President/
		Representative Director and President of Asahi
		Television Broadcasting Corporation
	Kazuhiko Ogura	Director, Managing Executive Officer
	Toshiaki Imamura	Executive Officer/Director of Asahi Television
		Broadcasting Corporation

Presentation

Moderator: Good afternoon, everyone. We would now like to begin Asahi Broadcasting Group Holdings Corporation's financial results briefing for second quarter of the fiscal year ending March 2023. Thank you for joining us today.

Today's presentation begins with an overview of the consolidated financial results and segment information, as well as the revision to the consolidated financial results forecasts. This is followed by the performance of Asahi Television Broadcasting Corporation. The presentation is scheduled to last approximately 25 minutes, followed by a question-and-answer session. The entire briefing will last a maximum of 60 minutes.

First, Susumu Okinaka, Representative Director and President of Asahi Broadcasting Group Holdings Corporation, will explain the Group's overall performance.

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Okinaka: This is Okinaka. Thank you very much for taking time out of your busy schedules to join us today. We would also like to thank everyone for their continued support.

Let me begin by explaining our business results for the first half of the fiscal year ending March 2023.

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Net sales totaled JPY41.1 billion, a YoY increase of JPY210 million. Although advertising revenue was weak due to the sharp depreciation of the Japanese yen and the resulting rise in prices, content business sales revenue was strong, resulting in the increase in sales.

On the other hand, operating expenses increased YoY in the content business due to production costs, investments in program production consortiums, and amortization. As a result, operating income was JPY293 million, ordinary income was JPY479 million, and profit attributable to owners of parent was JPY403 million, all of which incurred YoY decreases.

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This is a historical trend in the past four years.

As you can see, our business performance, especially operating income, tends to grow more in the second half of the year than in the first half. In the graph on operating income, the blue bars and orange bars show the first half results and the second half results, respectively.

This is due to the concentration of sports events, such as high school baseball and professional baseball broadcasts, in the first half of the year. Then there is the strong tendency for advertisers' campaigns to increase in the second half. Moreover, there are many of our national network special programs during the year-end and New Year's holidays, etc., so this is somewhat a structural tendency.

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