(E04398) Stock Price

Shikoku Broadcasting is a regional broadcaster based in Tokushima Prefecture that operates commercial television and radio services. The company's primary business is core broadcasting operations under the Broadcasting Law, using broadcast equipment regulated by the Radio Law to provide community-focused broadcasting services. Its operations consist of a single broadcasting segment, and the company works with affiliated companies to expand its broadcasting business.

The company's revenue is primarily driven by advertising income from corporations. Its main sales formats are "time sales," which sell programming blocks of five minutes or longer, and "spot sales," which sell short time slots of approximately 15 to 30 seconds. By revenue composition, television operations account for approximately 94% of total sales as the core business, while radio operations represent approximately 6%, reflecting a heavy dependence on television broadcasting.

The Shikoku Broadcasting Group consists of one subsidiary and three affiliated companies. For program production, the company outsources some work to its subsidiary Tokushima Broadcasting Planning and affiliated company Shikoku Broadcasting Service to improve production efficiency. The affiliated companies diversify revenue streams beyond broadcasting: Shikoku Broadcasting Service handles television program production and insurance agency services, Asan Development operates golf courses, and Happy operates health and wellness facilities.

Shikoku Broadcasting is prioritizing the establishment of consistent profitability as its most critical management objective, operating in a challenging business environment marked by population decline and aging demographics. The company faces intensifying headwinds from accelerating population decline in Tokushima Prefecture—outpacing national trends—alongside external pressures including natural disasters, the spread of COVID-19, and shifts in the global landscape. In response, the company is pursuing stable operations through the development of a sustainable revenue foundation.

The company's core strategy centers on strengthening its management foundation through dual initiatives: revenue growth and cost optimization. On the revenue side, the company continues investing in higher-quality program production to enhance viewer satisfaction and advertising value. Simultaneously, it is strengthening sales capabilities to deepen relationships with regional businesses and develop new sponsors, aiming to expand advertising revenue across both television and radio operations. On the cost side, while broadcast equipment maintenance and upgrade expenses continue, the company is improving profitability through company-wide cost reduction measures.

Technology investment remains essential, particularly in maintaining and updating broadcast infrastructure. The company prioritizes regular maintenance of television and radio broadcast equipment and implements planned equipment upgrades to ensure uninterrupted broadcast service delivery. While these capital investments create near-term cost burdens, the company views them as necessary strategic investments to ensure long-term business continuity and fulfill its broadcast responsibilities to the region.