Company cites cost of high quality video production

IG Port, the parent company of animation studios Production I.G , Wit Studio , XEBEC , Signal.MD , and publisher Mag Garden , released a report for the first quarter of this fiscal year (June 1-August 31) on Friday. The report showed a net loss for the period.

The company reported consolidated sales of 2.1 billion yen (about US$18.7 million), a 67.4% increase compared to the same period last year. However, the company reported an operating loss of 226 million yen (US$2.01 million), an ordinary loss of 198 million yen (US$1.77 million), and a net loss of 178 million yen US$1.59 million). The company had reported net profits for the same period last year.

The shift is particularly pronounced in IG Port's video production companies. Production I.G , Wit Studio , XEBEC , and Signal.MD had total sales of 1.539 billion yen (US$13.7 million), 233.5% of last year's total. However, it had a net loss of 240 million yen (US$2.14 million). The company cited the increased costs of producing high quality content.

IG Port's publishing industry saw a 37.6% year-on-year decrease in sales to 280 million yen (US$2.5 million), and a 90.5% decrease in profits to 11 million yen (US$98,000). The manga Dragon, Ie o Kau. (pictured left) was a particularly successful title.

IG Port saw a 17.4% increase in sales for its copyright industry, to 226 million yen (US$2.02 million). The industry turned a profit of 47 million yen (US$419,000). Key franchises included Kuroko's Basketball , Ghost in the Shell , Attack on Titan , and Kabaneri of the Iron Fortress .

For other industries, including merchandise and smartphone games, IG Port had sales of 53 million yen (US$473,000), a 22.1% decrease from last year, and a net loss 27 million yen (US$241,000).

IG Port has not modified its earlier earnings forecast: it expects to have sales of 9.592 billion yen (US$85.5 million), an operating profit of 561 million yen (US$5 million), an ordinary profit of 610 million yen (US$5.44 million), and a net profit of 365 million yen (US$3.25 million) over the next year