Toei Animation has reported record sales for the 1st quarter of FY2023 with net sales up by 36.96% to 18,061 million yen (≈133.81 million USD) derived from strong performance of sales related to the One Piece Film: Red and Dragon Ball Super: Super Hero theatrical releases. Note that the period considered for the first quarter is from April 1 to June 30 this year, and sales derived from One Piece Film: Red would come from its production and not from the screening since the film was only released on August the 6th, out of scope for the first quarter report. As for Dragon Ball: Super Hero, the screening happened on June 11, and as such, played a huge role in driving up sales for the group for the period. Nevertheless, the strong sales made for the period has been offset by the cost of production and advertising, causing the operating income to fall by 3.2% from 4,245 million yen (≈31.46 million USD) to 4,110 million yen (≈30.46 million USD) year-on-year (y-o-y). Despite all this, its net income still manages to climb by 31.99% to 4,023 million yen (≈29.81 million USD) amid foreign exchange gains due to a depreciating yen.
Stellar Performance for Its Movies and Overseas Film Divisions
As for its performance according to segment, a huge jump in sales can be observed for its Movies from just 24 million yen (≈177.87 thousand USD) in sales the prior fiscal year to 1,242 million yen (≈9.21 million USD), that would be a significant increase of 5075% y-o-y amid revenue from the Dragon Ball Super: Super Hero film (picture). Note that for the period, the film Oshiri Tantei Shiriarty also contributed to sales.
Its TV segment noted a slight increase of 0.57% y-o-y from 871 million yen (≈6.46 million USD) to 876 million yen (≈6.49 million USD) which the group attributed to fewer works that were aired for the period: Dragon Quest: Dai no Daibouken, One Piece, Delicious Party♡Precure, Digimon Ghost Game, Fushigi Dagashiya: Zenitendou, and Oshiri Tantei, six titles in total. Note that if you head over to its first quarter report for FY2022, Toei Animation also mentioned that it aired six titles, therefore, the reduction it mentioned for FY2023 is most likely due to fewer shows aired for the related titles (please refer to page 2).
Sales of its content division continues to underperform as sales retreated by a further 9.26% y-o-y amid a reactionary decline of Blu-rays and DVDs particularly from the film Majo Minarai wo Sagashite (which was theatrically released in November 2020 while the discs were released on April 2 last year) that performed well the prior fiscal year. That said, it may see a recovery for the segment if Dragon Ball Super: Super Hero Blu-ray and DVD releases were to happen within the fiscal year, which it should probably do so in the fourth quarter.
The Overseas Film division recorded its best performance to date since the first quarter of FY2018 as sales grew significantly by 90.37% y-o-y to 4,110 million yen (≈30.47 million USD) from 2,159 million yen (≈16 million USD) thanks to sales of overseas screening rights of Dragon Ball Super: Super Hero. Note that the film is bound for the US market on August 18 and other areas slightly later in the month of August while Singapore, Taiwan and Turkey will receive the film in September. For the release info please refer here.
As for its Others division, the strong sales of its video distribution rights in Japan from the same period of fiscal year has resulted in a 17.91% increase to 1,356 million yen (≈10.05 million USD) from 1,150 million yen (≈8.52 million USD).
Strongest Overseas Licensing Performance Since the
1st Quarter of FY2018
The Licensing Segment on the other hand sees strong returns from the overseas market accounting for 60.4% of all sales as proceeds from overseas bounced up by 9.53% y-o-y to record 5,771 million yen (≈42.72 million USD) in sales, its highest since the first quarter of FY2018. Its domestic market performance is not at its highest, however, the 3,791 million yen (≈28.07 million USD) in sales reported is 17.66% higher than the 3,222 million yen (≈23.86 million USD) it made in the same quarter last year. As a result, its operating income for the segment jumped 5.21% to 4,486 million yen (≈33.21 million USD) for the quarter over last year’s.
The strong performance recorded is attributable to a number of factors, mainly due to the sales of merchandising rights of One Piece and Dragon Ball in its domestic market that were influenced by the releases of the new films. Then, the group witnessed a significant increase in contract sales for pachinko machines. The game and merchandising rights were also strong for Dragon Ball domestically, spurred by the theatrical release of Dragon Ball Super: Super Hero. Here, One Piece saw a slight decrease in sales of its game rights, but proceeds from sales of merchandising were strong.
The overseas market reported great returns that were positively affected by the sales of merchandising rights of both the Dragon Ball and One Piece series, and video game development rights for the One Piece and Digimon series were also noted to have been particularly strong. The screening rights derived from the overseas market has noted a significant increase in sales y-o-y worldwide including that of North America whereas in China, sales of distribution rights for its titles such as One Piece were strong. The group also recorded production sales for the new season of the full 3DCG animation of Saint Seiya.
Examples of goods sold via the Mugiwara Store
In addition, its goods department has noticed a 61.63% improvement in sales over the previous fiscal year to 535 million yen (≈3.96 million USD) from 331 million yen (≈2.45 million USD) as sales through its One Piece shop business were doing very well for the period, however, the sales of products from the Sailor Moon series failed to impress, not being able to reach the performance experienced prior to the COVID-19 pandemic. As such, Operating Income for the segment unfortunately recorded a loss of 36 million yen (≈266.51 thousand USD).
The US Leapfrogs Asia to Be the Largest Contributor
for the Overseas Market
Now as for a more detailed breakdown of total sales according to region, the overseas market continues to be the largest contributor of sales for the group for the third consecutive row as sales climbed by 34.19% to 10,409 million yen (≈77.16 million USD) from 7,757 million yen (≈57.50 million USD) it made for the same fiscal year the previous year. This is by far its best quarterly performance since the first quarter of FY2018. The domestic market is not too shabby at all either, recording a 7,691 million yen (≈57.01 million USD) in sales, a 41.27% improvement over the same quarter of last year, and its best performance to date since the first quarter of FY2018 as well, only that it is a minor upgrade of 1.32% over sales produced in the first quarter of FY2020.
Further breakdown of the overseas market shows that the US market has now overtaken the Asian market to be the biggest contributor, accounting for 45.1% of total sales made at 4,698 million yen (≈34.82 million USD) while Asia accounts for 31.7% of the share at 3,304 million yen (≈24.49 million USD), a drop of 5.82% y-o-y. Both Europe and Latin America account for 16.7% and 6.4% share each at 1,738 million yen (≈12.88 million USD) and 669 million yen (≈4.96 million USD) respectively.
Dragon Ball and One Piece Continue to Perform Well for the Group
As for the Top 4 Domestic Licensing earners, we have Dragon Ball topping the list at 1,693 million yen (≈12.55 million USD), up by a small 8.80% y-o-y whereas One Piece maintains its 2nd position at 1,130 million yen (≈8.38 million USD), an increase of 6.70%. Then, the 3rd biggest earner for the segment is the Pretty Cure series at 110 million yen (≈815.47 thousand USD), a fall of 9.09% y-o-y. Saint Seiya that was present the same quarter the year before has been jettisoned out of the list, overtaken by Dai no Daibouken at 62 million yen (≈459.58 thousand USD). As a result, the Dragon Ball series for the segmented period accounts for 44.7% of the total sales made whereas One Piece, Pretty Cure and Dai no Daibouken accounts for 29.8%, 2.9% and 1.6% of sales respectively. Others make up 21% of the total sales.
As for the Overseas Film segment, the Top 4 is led by the Dragon Ball series which outpaces One Piece to become the best-selling title at 1,548 million yen (≈11.47 million USD) amid strong sales from its screening rights. One Piece is placed 2nd on the list at 870 million yen (≈6.45 million USD), up by 46.46% over the same period the year before. Note that the series should see increasing returns when One Piece Film: Red starts to derive sales from its screening rights, perhaps in the second quarter or later. Digimon maintains its 3rd position with an improvement of 91.38% to 333 million yen (≈2.47 million USD). Sailor Moon, which made it onto the list the year before, has been left out, being replaced by Saint Seiya at 316 million yen (≈2.34 million USD). Consequently, for this segment, Dragon Ball accounts for 37.7% of the total sales made while One Piece, Digimon, and Saint Seiya are at 21.2%, 8.1% and 7.7% each. Others make up 25.4% of the total sales.
Dragon Ball continues to dominate the Overseas Licensing space for the sixth consecutive time in a row as sales move up by 4.75% to 2,757 million yen (≈20.44 million USD) while One Piece remains as its second best at 1,145 million yen (≈8.49 million USD), 45.86% better than the previous first quarter of the prior fiscal year. Slam Dunk was the third best performer the year before, but the 57.85% reduction in sales pushes it down the ladder to Number 4 at 255 million yen (≈1.89 million USD) which paves way for Digimon to overtake it to settle at 325 million yen (≈2.41 million USD). In this segment, Dragon Ball accounts for 47.8% of the total sales made, One Piece is right behind at 19.8% whereas Digimon and Slam Dunk are at 5.6% and 4.4% each. Others make up 22.3% of the total sales.
As for Dragon Ball and One Piece, the two continue to do well for the group with Dragon Ball at record sales made with all segments combined at 5,998 million yen (≈44.45 million USD), a 30.02% increase y-o-y while One Piece, not at its best, nevertheless, sees a 29% improvement over the same quarter the year before to net 3,145 million yen (≈23.30 million USD) — its best first quarter performance to date is FY2020. But, over the next few months, the two titles are expected to derive even more sales thanks to the releases of their theatrical films. For Dragon Ball, more will come from the overseas market, and One Piece will certainly see a great bump in sales when its latest film is accounted for in the second quarter report.
All-in-all when we compare the two titles against the rest, Dragon Ball accounts for a massive 48.4% of the total sales while One Piece is nearly half of that at 25.4% while Others is at 26.2%.
Future Developments
The group is expecting strong results for the third quarter when One Piece Film: Red and Slam Dunk hit theatres nationwide while Dragon Ball continues to press on with theatrical proceeds of its Dragon Ball Super: Super Hero film in the second quarter. Other Films and Video projects that it is expecting to derive sales from would be the releases of the Delicious Party♡Precure film this coming September the 23rd, then there is the streaming of the full 3DCG animation work Knights of the Zodiac: Saint Seiya – Battle for Sanctuary which for a fact already being broadcasted as of the time of writing. That should see a slight increase in sales for the series in the second quarter.
Strong sales are also expected from the Overseas Film department, particularly from China for the second quarter, and Video Production and Others segments are predicted to bring more revenue in the next quarter. As for Domestic and Overseas Licensing, sales of both merchandising and game rights will continue to be strong brought upon by its so-called movie effects, whereas Dragon Ball, One Piece and Digimon are expected to be strong. The group is also predicting more income from events as Japan recovers from the pandemic.
One Piece Film: Red
Aug 6, 2022
The First Slam Dunk
Dec 3, 2022
Dragon Ball Super: Super Hero
Jun 11, 2022
Delicious Party♡Precure
September 23, 2022
Toei Animation Ownership Chart for Reference
Toei Animation Co., Ltd. is incorporated in Japan with its head office in Nakano-ku. It is listed on the Tokyo Stock Exchange under ticket symbol: 4816.
Note:
All currency conversion was done at the time of writing.
Sources:
First Quarter Report FY2022
First Quarter Report FY2023
Briefing Material First Quarter FY2023
Data Sheets First Quarter FY2023
NOTICE OF THE 84TH GENERAL MEETING OF SHAREHOLDERS (June 2022)
Google Charts:
Toei Animation Consolidated Operating Results in Million Yen (As of Q1 FY2023)
Toei Animation Consolidated Results by Segment in Million Yen (As of Q1 FY2023)
Toei Animation Licensing Consolidated Results by Segment in Million Yen (As of Q1 FY2023)
Toei Animation Consolidated Results by Segment by Regions in Million Yen (As of Q1 FY2023)
Toei Animation Consolidated Results by Segment Overseas Market in Million Yen (As of Q1 FY2023)
Consolidated Sales of Major Titles by Segment in Million Yen (Domestic Licensing as of Q1 FY2023)
Consolidated Sales of Major Titles by Share in Million Yen (Domestic Licensing as of Q1 FY2023)
Consolidated Sales of Major Titles by Segment in Million Yen (Overseas Film as of Q1 FY2023)
Consolidated Sales of Major Titles by Share in Million Yen (Overseas Film as of Q1 FY2023)
Consolidated Sales of Major Titles by Segment in Million Yen (Overseas Licensing as of Q1 FY2023)
Consolidated Sales of Major Titles by Share in Million Yen (Overseas Licensing as of Q1 FY2023)
Consolidated Sales of Dragon Ball by Segment in Million Yen (As of Q1 FY2023)
Consolidated Sales of One Piece by Segment in Million Yen (As of Q1 FY2023)
Consolidated Sales by Segment of Dragon Ball vs One Piece in Million Yen (As of Q1 FY2023)
Consolidated Sales of Major Titles by Share in Million Yen (Overall as of Q1 FY2023)
Additional Google Charts:
Consolidated Sales of One Piece in Million Yen (Percentage Change, As of Q1 FY2023)
Consolidated Sales of Dragon Ball in Million Yen (Percentage Change, As of Q1 FY2023)
Consolidated Sales of Pretty Cure in Million Yen For Domestic Licensing (Percentage Change, As of Q1 FY2023)
Consolidated Sales of Digimon in Million Yen For Overseas Film (Percentage Change, As of Q1 FY2023)
Consolidated Sales of Slam Dunk in Million Yen For Overseas Licensing (Percentage Change, As of Q1 FY2023)
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