Toho Co, already Japan’s largest integrated film company, says it will invest ¥70 billion/US$489 million over the next three years in new content. A further ¥120 billion/US$839 million has been earmarked, also over three years, on corporate acquisitions and the opening of multiplex cinemas.

Both the internal investments and the M&A spending are intended to strengthen Toho’s position in anime and in the international marketplace. The plan calls for the company to grow the portion of its operating revenues from outside Japan from 10% at present to 30%, seven years from now in 2032.

The figures were revealed this month as part of the "Godzilla" studio’s mid-term plan, running to the end of its financial year ending February 2028. The current 2025-28 phase is said to be focused on ongoing investment and transformation. These are intended to lead to a 2029-32 phase of breakthrough and expansion.

The content investment will span feature films, anime and mobile games, with ¥15 billion/US$1.04 billion of that going into the Godzilla franchise. Toho plans console games, merchandise attractions and a sequel to "Godzilla Minus One", a late 2023 film which was widely distributed in international markets and won an Oscar for best visual effects.

The company reported annual ordinary profits barely changed at ¥64 billion/US$447 million, derived from operating revenues that were up 11% at ¥313 billion/US$2.18 billion. 

There will be some short-term pain before the fruits of the investment phase kick in. 

For the current year (running to February 2026) the company has provided guidance indicating operating revenues drifting down to ¥300 billion/US$2.1 billion and ordinary profits falling 15% to ¥55 billion/US$384 million. 

The declines reflect the lack of "Godzilla Minus One" revenue and the close of a prestige cinema. Toho’s current year box office is also some 9% lower in the first quarter of 2024.

The anime + international investment strategy are already underway. In October, Toho acquired U.S.-based anime distributor GKids. In December, it took a stake of nearly 20% in Japan-based anime producer Orange Co, and the same month began operation of its Singapore-based TEA subsidiary, focused on licensing, merchandising, marketing across the Asian region.

Further underlining Toho’s growing commitment to anime, it has now regrouped most of its animation activities into a new business cluster, for which it will in future provide separate financial reporting.

Across its Toho Animation, Science Saru brands as well as distribution titles, Toho will this year release eight seasons of its various TV series and two anime films in theatres – with JUJUTSU KAISEN Hidden Inventory / Premature Death the next, arriving in cinemas on 30 May. – By Patrick Frater