Avex Inc. (TSE: 7860), the Tokyo-based entertainment group whose business spans recorded music and artist management, live events and touring, and animation, IP and digital media, posted a sharp recovery in full-year results for FY2026 (April 2025 – March 2026) on May 14, 2026. Consolidated revenue rose 11.3% year-on-year to ¥146,571 million, while the company swung back to an operating profit of ¥4,085 million from an operating loss of -¥1,819 million the prior year. Ordinary profit reached ¥4,333 million, also reversing a -¥1,703 million ordinary loss. Profit attributable to owners of the parent surged 212.1% to ¥3,553 million, from ¥1,138 million, lifting earnings per share to ¥83.68 from ¥26.11.
The earnings turnaround underscores a return to health across the group's two principal entertainment engines. Comprehensive income climbed 191.6% to ¥4,506 million, and equity-method investment income contributed ¥502 million. Return on equity recovered to 7.0%, reflecting the restored profitability after a loss-making prior year.
Music and live entertainment drive the rebound
The revenue gain was led by the group's core music and live-entertainment operations. Avex's recorded-music and artist-management businesses — which house its record labels and a roster of domestic artists — benefited from a stronger release slate and renewed monetisation across streaming, physical media and licensing. The live-events and touring business added meaningful momentum as concert and event activity continued to normalise, with higher attendance and ticketing revenue flowing through to the top line. The group's animation, IP and digital-media operations rounded out the portfolio, contributing intellectual-property licensing and content revenue that complements the music and live segments. The combination pushed consolidated revenue up 11.3% and, crucially, restored segment-level profitability that had eroded in the prior year.
Balance sheet steady; cash flow turns positive
Total consolidated assets rose to ¥110,793 million from ¥105,960 million a year earlier, while net assets stood at ¥52,889 million and the equity ratio came in at 46.5%, pointing to a solid capital base. Net assets per share reached ¥1,213.23. Cash generation improved markedly: operating cash flow turned positive at ¥2,076 million, reversing a -¥4,675 million outflow in FY2025. Investing activities used -¥665 million and financing activities used -¥2,906 million, the latter reflecting dividend payments and debt management. Cash and equivalents at period-end stood at ¥34,305 million, leaving the group well positioned to fund content investment and shareholder returns.
Dividend held at ¥50; FY2027 guided at ¥6.0bn operating profit
Avex held the annual cash dividend flat at ¥50 per share for FY2026 (¥25 interim + ¥25 year-end), representing a payout ratio of 66.4% on consolidated net profit. Looking ahead, the company guided FY2027 (ending March 2027) for an operating profit of ¥6,000 million (+46.9%) and net profit attributable to owners of the parent of ¥3,200 million (-9.9%), equivalent to EPS of ¥75.36. The forecast pairs a sharply higher operating profit with a modestly lower bottom line — reflecting a normalisation in non-operating and one-off items after the FY2026 recovery — and the company guided a forecast annual dividend of ¥50 per share, holding the payout flat for a second consecutive year.
| Metric | FY2026 | FY2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 146,571 | 131,691 | +11.3% |
| Operating profit (¥ million) | 4,085 | -1,819 | Return to profit |
| Ordinary profit (¥ million) | 4,333 | -1,703 | Return to profit |
| Net profit attrib. to owners (¥ million) | 3,553 | 1,138 | +212.1% |
| EPS (¥) | 83.68 | 26.11 | +220.5% |
| ROE | 7.0% | — | — |
| Total assets (¥ million) | 110,793 | 105,960 | +4.6% |
| Equity ratio | 46.5% | — | — |
| Operating cash flow (¥ million) | 2,076 | -4,675 | Return to positive |
| Annual dividend (¥) | 50 | 50 | Flat |
| FY2027 guidance — operating profit (¥ million) | 6,000 | — | +46.9% |
| FY2027 guidance — net profit (¥ million) | 3,200 | — | −9.9% |
| FY2027 guidance — EPS (¥) | 75.36 | — | — |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.