THE ASAHI SHIMBUN
January 31, 2025 at 13:01 JST
The headquarters of Fuji Television Network Inc. in Tokyo’s Minato Ward (Asahi Shimbun file photo)
Fuji Media Holdings Inc. slashed its net profit forecast in half for the fiscal year ending in March largely because of fallout from the sex-related scandal involving former TV entertainer Masahiro Nakai.
The company is now projecting net profit of 9.8 billion yen ($63.6 million), compared with its earlier forecast of 19.2 billion yen, a board of directors meeting heard on Jan. 30.
Overall revenue is expected to hit 548.2 billion yen, down 50.1 billion yen from its earlier forecast. The company also cited lower sales in its real estate business for the downward revision.
The holding company’s broadcasting arm, Fuji Television Network Inc., also held its board of directors meeting on Jan. 30.
It projected broadcasting revenue to be 23.3 billion yen lower than its forecast made in May 2024.
The main reason for the decline in broadcasting revenue is that Fuji Television has voluntarily stopped charging fees to advertisers.
Since mid-January, after the incident between Nakai and a woman at a dinner party in June 2023 was reported, major companies and other sponsors have pulled advertisements from Fuji Television.
Many have replaced their commercials with public advertisements by the Advertising Council Japan (AC Japan), a public interest incorporated association.
Since companies have requested the cancellation of future commercial placements, Fuji Television announced its policy of not charging fees for the withdrawn commercials or for the replacement AC Japan ads.
After the board of directors meeting, Kenji Shimizu, the new president of Fuji Television, told reporters that the board will establish a management reform subcommittee to strengthen governance and restore trust.
The seven outside board directors had requested the subcommittee on Jan. 27, and they will conduct verification studies and make recommendations, Shimizu said.
Fuji Television became embroiled in the scandal because initial reports suggested that an employee of the company had set up the dinner party between Nakai and the woman.
But on Jan. 28, the editorial department of weekly magazine Shukan Bunshun corrected its initial report, saying it was Nakai, not the Fuji Television employee, who invited the woman to the dinner party.
Although the magazine had discovered the error earlier, its correction and apology came after Fuji TV’s news conference on Jan. 27, when Shimizu’s predecessor and the broadcaster’s chairman resigned.
“I wondered most why (the magazine) made the correction at that timing,” Shimizu said. “A proper response is necessary.”
Chief Cabinet Secretary Yoshimasa Hayashi said at a news conference on Jan. 30 that four government advertisements related to Fuji Television have been canceled.
He also said the government will not run ads on Fuji TV for the time being because of the controversy surrounding the way in which the broadcaster handled the incident involving Nakai, 52, who has retired from the entertainment industry.
The government had asked various ministries and agencies if they had public relations or awareness-raising projects involving Fuji Television.
Hayashi said that as of Jan. 29, there were four government advertisements involving Fuji TV—two from the Cabinet Office and one each from the health ministry and the National Tax Agency.
The government previously reviewed one project from the Fire and Disaster Management Agency regarding tie-ups and cooperation in program production.
The government is also considering how to deal with one project concerning the Cabinet Office and two with the Japan Coast Guard, Hayashi said.
(This article was written by Rina Horikoshi and Shiki Iwasawa.)
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