2005
7.28
Revision of Financial Forecast and Proposed Year-end Dividend Payments for the Fiscal Year Ending March 31, 2006
Nippon Television Network Corporation
(Tokyo Stock Exchange 9404)
Nippon Television Network Corporation (NTV) announced today its revision of financial forecast and proposed dividend payments for the fiscal year ending March 31, 2006 from those previously announced on May 19, 2005.
| 1.Revision of Financial Forecast | |
| (1) For the 6 months ending September 30, 2005 | (Unit: millions of yen) |
| Net sales | Ordinary income | Net income | |
| Previous Forecast (A) (as of May 19, 2005) | 145,500 | 12,500 | 5,800 |
| Revised Forecast (B) | 142,500 | 8,800 | 150 |
| Change amounts (B - A) | △3,000 | △3,700 | △5,650 |
| Change (%) | △2.1% | △29.6% | △97.4% |
| Previous interim period result (For the 6 months ended September 30, 2004) | 147,024 | 10,522 | 3,734 |
| (2) For the fiscal year ending March 31, 2006 | (Unit: millions of yen) |
| Net sales | Ordinary income | Net income | |
| Previous Forecast (A) (as of May 19, 2005) | 296,500 | 26,500 | 13,800 |
| Revised Forecast (B) | 290,300 | 19,500 | 6,500 |
| Change amounts (B - A) | △6,200 | △7,000 | △7,300 |
| Change (%) | △2.1% | △26.4% | △52.9% |
| Previous fiscal year results (For the year ended March 31, 2005) | 297,079 | 25,370 | 12,536 |
| (Ref.) Forecast of net income per share: 260.46 yen |
(3) Reasons of revision
Forecast for net sales for both the 6 months period ending September 30, 2005 and the fiscal year ending March 31, 2006 will decrease by 2.1% from the previous forecast announced on May 19, 2005. We forecast that TV Broadcasting sales will decrease by 2.7% for the interim period ending September 30, 2005 and by 2.4% for the year ending March 31, 2006, mainly due to declining viewer ratings and recent market slowdown. Other sales continues to have slight growth, however, it will not cover the decline of TV Broadcasting sales.
The decrease in forecast of ordinary income is due to the increase of production cost to strengthen regular programs and to aggressively create strong non-regular programs for gaining better viewer ratings.
The decrease in forecast of net income is due to an expected large increase in loss on devaluation of investment securities in the amount of about 8 billion yen in addition to the reasons stated above.
Note: These forward-looking statements are based on managements' assumptions and beliefs in light of the information currently available, and involve risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements.
2.Revision of proposed dividend payments for the fiscal year ending March 31, 2006
(1) Reasons of revision
We have adopted a performance-based dividend policy. The target payout ratio is set to be 33 % of the non-consolidated net income, with an annual dividend of 100 yen as the floor. The previous forecast of dividend announced on May 19, 2005 was based on the non-consolidated net income forecast announced on the same day. Due to 33% of the non-consolidated net income will be lower than 100 yen with the revised forecast of the non-consolidated net income announced today, the forecast of proposed dividend payments are revised as follows.
| (2) Revision |
| Interim period | Year end | Annual | |
| Previous Forecast (A) (as of May 19, 2005) | 75.00 | 108.00 | 183.00 |
| Revised Forecast (B) | 50.00 | 50.00 | 100.00 |
| Change amounts (B - A) | △25.00 | △58.00 | △83.00 |
Note: These forward-looking statements are based on managements' assumptions and beliefs in light of the information currently available, and involve risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements.
