Media Do raised its forecast for net profit attributable to owners of the parent to ¥2.76bn from ¥1.2bn, a rise of ¥1.56bn or 130.0%, for the year ending February 2027. The company says the whole increase comes from a special gain on selling subsidiaries.
A disposal gain, not an operating upgrade
Forecast sales of ¥118bn, operating profit of ¥2.4bn and ordinary profit of ¥2.05bn were left unchanged. The company said the shares in Quality Solutions, Inc., NetGalley, LLC and three of their subsidiaries were sold to Valsoft Corporation Inc. on 5 October 2026. The sale price was ¥3.11bn, including an adjustment that rests on an estimate and may change when finalised. Media Do expects to book a ¥1.56bn gain on the sale of shares in affiliates as a special gain. The earnings presentation says the gain should land in the third quarter, and that the tax value of the shares exceeds the sale price, so no tax is expected. That is why net profit rises by the full amount of the gain. For readers following the disposal itself, here is Earlier Tokyo Brief coverage.
Dividend follows profit
The year-end dividend goes to ¥55 a share from ¥40. Media Do targets a total payout ratio, covering dividends and buybacks, of at least 30%, and expects 30.3% this year.
What the first half shows
First-half sales rose 8.3% to ¥58.3bn, but operating profit fell 15.0% to ¥1.19bn and net profit fell 61.6% to ¥508mn. The company says Seven Seas Entertainment, LLC, bought in March 2026, is now its vehicle for taking Japanese content overseas, and the sales of the other units were meant to free resources for it. The deck expects Seven Seas to add ¥6.0bn of sales and ¥280mn of operating profit over the second to fourth quarters, so that contribution is still a forecast.