(E04390) Stock Price

Nagasaki Broadcasting is a regional media company based in Nagasaki Prefecture, with general broadcasting via television and radio as its core business. Established in 1952, the company has a network agreement with TBS Television, enabling it to balance locally-focused programming with nationwide network broadcasts. The company pursues diversified business operations across its group, centered on broadcasting.

The company's revenue is primarily supported by television and radio advertising income, with commercial fees from local advertisers serving as the core revenue source. Program production and commercial planning are handled by subsidiary NBC Socia, while related company Kyushu Advertising functions as a sales agency. This group coordination enables efficient business operations.

The company group comprises five business segments. In addition to its core general broadcasting business, subsidiary NBC Information Systems handles computer-related operations, while the company itself operates real estate rental businesses for its headquarters building and Tokyo branch office building, as well as rental hall services utilizing its facilities. This diversification secures stable revenue sources outside broadcasting and mitigates business risk.

Nagasaki Broadcasting maintains its core management strategy around strengthening and sustaining its reporting capabilities and program production capacity as a community-focused local broadcaster. The company aims to improve performance through increased viewership and listener ratings, and is committed to maintaining its position as "a solid local broadcaster that walks alongside the community and contributes to regional development," thereby meeting the expectations of shareholders and residents. In an environment where significant revenue growth in broadcasting operations cannot be expected, the company prioritizes securing stable operating profits across the group through efficient cost management.

The company's priority investment areas are optimization of broadcast facilities and initiatives to create new value. To reduce maintenance and renewal costs for relay station equipment, the company is focusing on building efficient facility management systems, including exploring the establishment of a joint hardware company with NHK. Additionally, the company is gathering information from multiple perspectives on its owned property in Ginza, Tokyo, and continues to examine optimal utilization methods. The company is exploring strategies to leverage this valuable real estate asset to enhance profitability.

For new market development, the company is implementing a unique initiative called the "Nagasaki New Value Creation Project Research." In partnership with the Business School of Innovation, the company has launched an educational program and is promoting talent development through a framework involving industry, government, academia, and finance in collaboration with companies and municipalities in the Nagasaki region. This initiative is positioned as a strategic investment that simultaneously addresses regional challenges and creates new business opportunities, with the aim of diversifying operations while fulfilling the broadcaster's social mission.

Financial strategy prioritizes the planned repayment of borrowings associated with the new headquarters construction. The company is reviewing the earnings and cost structure of the entire group and working to reduce interest-bearing debt and improve the equity ratio through stable operating cash flow. With limited recovery in advertising revenue from broadcasting operations, computer-related and event-related businesses support group profitability. The company plans to strengthen these diversified operations going forward to improve overall profitability and build a stable financial foundation.