Fuji Media Holdings Inc., the parent company of Fuji Television Network, has reported a net loss of ¥20.1 billion (approximately $138.5 million) for the fiscal year ending March 2025, marking the first time the media conglomerate has posted a loss since its public listing in 1997.
The sharp downturn comes amid ongoing fallout from a series of high-profile scandals that have severely impacted the company’s corporate reputation and commercial relationships. The net loss stands in stark contrast to the previous year’s net profit of ¥37.08 billion, and diverges significantly from the company’s earlier projection of a ¥29 billion profit.
Total sales for the fiscal year amounted to ¥550.7 billion, down 2.8% year-on-year, as advertisers pulled commercial spots from Fuji TV programming in response to the negative publicity. The reputational damage stems primarily from the controversy involving former TV personality Masahiro Nakai. Initially reported as “sexual trouble,” a third-party investigation later characterised the incident as “sexual violence,” prompting broader scrutiny of the company’s corporate governance and internal culture.
The financial blow was compounded by the subsequent redirection of advertising budgets to rival networks. TV Asahi, for example, reported a 12.3% increase in commercial revenue for the January–March quarter compared to the same period last year. It also secured 24.7% of total advertisement block shares in Tokyo among the five major broadcasters for fiscal 2024, a record high for the station.
Looking ahead, Fuji Media Holdings has forecast a net profit of ¥10 billion for the fiscal year ending March 2026. However, the company expects operating profit to decline sharply by 86.3% to ¥2.5 billion, even as sales are projected to grow slightly to ¥560 billion, a 1.9% increase.
In an effort to regain public trust and stabilise its business operations, the company has announced an upcoming leadership overhaul as part of a wider reform agenda. At its general shareholders’ meeting in June, Fuji Media Holdings intends to appoint a new executive board, retaining only Kenji Shimizu, who is set to become the company’s new president, pending shareholder approval.
The company had revealed its initial list of director candidates in March. However, major shareholder Dalton Investments opposed the slate and instead proposed its own list of 12 candidates, which included notable figures such as SBI Holdings CEO Yoshitaka Kitao. In response, Fuji Media Holdings rejected the proposal, citing concerns that a board composed entirely of external directors would lack the necessary internal insight for effective governance. The company also reaffirmed its commitment to maintaining a streamlined board structure.
Among the additional candidates nominated by the company are Takashi Sawada, former president of Family Mart; Tsutomu Horiuchi, former CFO of Mori Building Co.; lawyer Saori Hanada; and Atsushi Yanagi, Fuji TV’s chief of finance.
Commenting on the developments, Shimizu stated: “We have continued to move forward with our reform plan and we have deemed that this group of candidates is the most fit to carry it out.”
Current President Osamu Kanemitsu and three other senior executives are scheduled to step down in June as part of the leadership transition.
-The Japan Times
