Nijisanji EN Performance: Revenue Loss and Impact Analysis of the FY2024.4 Q4 Financial Report

Before we begin, it is important to note that interestingly, Anycolor has separated their typical report into two PDFS, one for “Financial results of FY2024.4” and the other for “Management policy for Mid-Term Growth”. They are for the most part the same size as previous reports, and are mostly the same. There’s also a document hosting an announcement regarding shares, which I’ll get to last.

But for context, we’ll first be going over “Financial results of FY2024.4”

PDF 1: Financial Results for FY2024.4 Q4

FINANCIAL RESULTS FOR THE QUARTER/YEAR:

Anycolor has missed their yearly forecast by 3%. This quarter they saw 8.7 billion yen in revenue. Interestingly, no separate charts for the two branches NijisanjiJP and NijisanjiEN anymore, but they show the real details in the appendix (we’ll move to that later).

While Anycolor claimed that Q4 would be their biggest year, that honor still goes to Q1 2024. And while revenue has increased, profits have started to stagnate. For comparison, Anycolor went from 19.7% profit in 2022 to 26.4% in 2023, this time they’ve only increased by 0.9% for 27.3% net profit. Interestingly, revenues by business areas show that while Commerce, Event, and Promotions saw growth, Livestreaming has taken a small loss.

For their forecasts for next year, Anycolor expects to see 39 billion yen in profit, a 21.9% increase. They “plan” to stabilize quarterly fluctuations across the fiscal year, as performances like Q1 2024 were heavily weighted.

In Revenue by Business area, Livestreaming saw 16% of Revenue, Promotion saw 18%, and Events saw 6%. Commerce takes the lionshare, with 59% of revenue coming from this sector.

The Finance section is where you’ll find the numbers on how the two branches truly did. I’ll keep the results for NijisanjiJP short. They did quite well and it seems NijiJP’s failure to get to the west was a blessing in disguise of not getting hit by the NijiEN drama. As for Nijisanji EN…

NIJISANJI EN’S PERFORMANCE

Nijisanji EN this year saw an approximate 24% loss from 2023 to 2024. Going by last year’s quarter, we can now safely say that Selen’s termination led to a 20% decrease compared to last year’s Q4.

Going by last year’s Q4, Livestreaming revenue saw a 35% loss, Promotion revenue saw a 15% loss, and their biggest revenue maker in commerce (I.e merchandising) also saw a 35% loss. However, for the first time, we do see revenue from Events in Nijisanji EN. They however fail to even cover half the losses from the rest of their revenue sources.

PDF 2: Management Policy for Mid-Term Growth.

This is where the reports begin to be repetitive, to keep it brief here are the few notable things featured.

According to Anycolor, 68% of their fanbase is female, and for age groups 20-29 make up 57% of their fanbase.
Interestingly, nearly half of their revenue comes from VTubers that debuted in Anycolor’s first two years. With those that debuted in their first year accounting for 30% of revenue.
Anycolor’s Mid-Term goals currently are to see nearly double in revenue and profit. With generic plans of strengthening their structure, hiring 10-15% more talents, and expect avenge revenue for talents to grow by 10-15%.
3-5 Million yen are being invested into various projects
They have approximately 20 billion yen on hand.
Interestingly Anycolor, for the first time, show operating risks such as reliance on popular talents and reputation risks. Unfortunately it seems they’re response to reputation risks is more compliance training, as well as “strengthened internal controls, such as actions based on findings from third parties.” (potentially a reference to leaked documents? This is just my speculation.)

The most notable thing of the report, outside of Nijisanji EN’s performance however, is that Anycolor is once again buying back stocks. They will be purchasing up to 4 million stocks, or 6.4% of total issued shares. With a total amount being paid out to be up to 7.5 billion yen. For reference, their January buy-back saw them spend 2.5 billion yen. Do keep in mind however that total stocks/amounts are approximate, and it may be more cheaper/expensive.

TLDR/OVERALL REVIEW

To put in simple metaphorical terms, Anycolor got a D+ for their financial results. While Nijisanji JP continues to be quite successful, They failed their forecasts, growth is starting to slow and their Overseas is looking dire by the month. The future in my opinion, is looking quite uncertain if they can’t replicate their success outside of their top talents in JP.

Update June 13: In an investor QnA Anycolor indicated that they would focus on NIJISANJI Japan (see picture below). This would spell doom for the support of Nijisanji English.

Link to the financial report: https://ssl4.eir-parts.net/doc/5032/ir_material_for_fiscal_ym3/157570/00.pdf

Link to Management Policy for Mid-Term Growth: https://ssl4.eir-parts.net/doc/5032/ir_material1/231226/00.pdf

2 responses to “Nijisanji EN Performance: Revenue Loss and Impact Analysis of the FY2024.4 Q4 Financial Report”

Anonymous

June 14, 2024

They have recently announced, that their main focus will be on JP, since they believe, that there is still room for growth, while keeping EN on “life-support”.

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1. Thomas Toblu
  
  June 14, 2024
  
  Correct, which spells doom for the EN branch
  
  LikeLike

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