Key Points
Q3 operating profit fell 14.1% to ¥1.326 billion despite 1.2% revenue growth to ¥8.851 billion.
Anime content and streaming now key growth drivers as broadcast advertising remains flat.
Full-year sales forecast ¥12.576 billion, up 6.5%, with operating profit down 6.6%.
Meyka grades stock B with ¥933 target; PE of 13.6x offers limited upside without accelerating non-broadcast revenue.
Nippon BS Broadcasting (9414.T) reported third-quarter results on July 9 showing operating profit fell 14.1% to ¥1.326 billion, weighed down by aggressive spending on anime content, program production, and marketing. Revenue climbed 1.2% to ¥8.851 billion. The broadcaster is betting on anime, streaming, and events to diversify beyond a struggling broadcast advertising market. Meyka grades the stock B with a ¥933 yearly forecast and a PE of 13.6x.
Why profit fell despite revenue growth
BS11’s operating profit dropped 14.1% to ¥1.326 billion in the nine-month period ending June 2026, even as sales rose 1.2% to ¥8.851 billion. The company spent heavily on program production, anime investments, and advertising to strengthen its content lineup and brand. Shopping programs remained weak, offsetting gains from sports and drama programming.
Anime and streaming emerge as profit drivers
BS11 broadcast roughly 40 anime titles per quarter through its ANIME+ block, including new productions like “Slime Isekai Season 4.” The company also expanded its BS11+ streaming service and collected dividends from anime production committees. These non-broadcast operations offset flat traditional advertising revenue and helped diversify earnings away from the struggling broadcast ad market.
Full-year guidance shows modest recovery ahead
For the full fiscal year ending August 2026, BS11 projects sales of ¥12.576 billion, up 6.5%, with operating profit of ¥1.804 billion, down 6.6%. Net profit is forecast at ¥1.306 billion, down 2.9%, with earnings per share of ¥73.30. The company expects a price-to-earnings ratio of 8.9x, suggesting modest valuation relative to growth.
Meyka data shows stock trading near fair value
Meyka grades BS11 a B with a 12-month price target of ¥933, just 2.4% above the current ¥911 price. The stock trades at 13.6x trailing earnings and 0.66x book value, both reasonable for a broadcaster with strong balance sheet metrics. RSI stands at 53, signaling neutral momentum, while the ADX trend indicator at 25.5 shows a strong directional trend.
Final Thoughts
BS11 is sacrificing near-term profit to build long-term revenue diversity through anime and streaming. With Meyka grading the stock B and the full-year PE at 8.9x, the valuation offers limited upside unless anime and non-broadcast revenue accelerate faster than expected.
FAQs
The company spent heavily on anime production, program development, and marketing to offset weak shopping program sales and compete in streaming. These growth investments compressed operating margins.
BS11 broadcasts roughly 40 anime titles per quarter through its ANIME+ block and collects dividends from production committees. It also expanded its BS11+ streaming service and partnered with toy makers on online lottery games.
Meyka grades BS11 a B with a ¥933 yearly forecast, implying 2.4% upside from ¥911. The stock trades at 13.6x trailing earnings and 0.66x book value.
BS11 posted nine-month net profit of ¥921 million, down 13.3% year-over-year. Full-year EPS is forecast at ¥73.30, implying a PE of 8.9x on guidance.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
About Author
Danny Kontos
Co FounderDanny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.
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