Generating Media Revenue Through the Full-Scale Development of Owned Media

「During the fiscal year, the company began diversifying its revenue channels by developing the new video media platform Motorz and working to secure traffic sources other than search.」

「Maintenance of published articles and content reviews in response to search engine algorithms, together with the launch and development of new media platforms related to mobile telecommunications and automobile purchasing.」

「While the company pursued risk-mitigation measures such as maintaining published articles in response to search engine algorithm updates, changes made mainly by Google to its core search algorithm affected search rankings for major media platforms. Display rankings for the company's media content nevertheless began to recover in some areas, and the company succeeded in capturing advertising demand associated with the spring moving season.」

「Although changes made mainly by Google to its core search algorithm led to greater screening for high-quality content and affected search rankings for major media platforms, display rankings for the company's media content began to recover in some areas. The third quarter of the current consolidated accounting period is also traditionally a period of strong advertising demand. By capturing this demand appropriately and managing costs more carefully for the production of various creative materials, the company began to see signs of a recovery in business earnings.」

「Although the company had pursued risk-mitigation measures, including diversification of its media offerings and maintenance of published articles in response to search engine algorithm changes, search rankings for its major media platforms fluctuated, mainly due to changes made by Google to its core search algorithm, and overall PV remained weak.」

「Search rankings for highly profitable keywords fluctuated, mainly due to the impact of changes made by Google to its core search engine algorithm. Although the company maintained published articles in response to the changes, overall PV remained weak.」

「Through maintenance of existing published articles in response to search engine algorithm updates and expansion of the range of products and services covered by referrals, search rankings for highly profitable keywords remained broadly in line with expectations.」

「During the third quarter of the current consolidated cumulative period, search rankings for highly profitable keywords remained broadly in line with expectations, partly because existing published articles were maintained in response to search engine algorithm updates and the range of products and services covered by referrals was expanded. As a result, media related to mobile telecommunications, the core field, remained generally firm, while page views and referral revenue for media in other fields, such as hobbies and internet services, grew substantially. The company also tested expansion into new media fields to support sustained growth in the scale of its operations.」

「Through maintenance of existing published articles in response to search engine algorithm updates and expansion of the range of products and services covered by referrals, search rankings for highly profitable keywords remained broadly in line with expectations, as in the previous quarter.」

「Through maintenance of existing published articles in response to search engine algorithm updates and expansion of the range of products and services covered by referrals, search rankings for highly profitable keywords remained firm, as in the previous fiscal year. These efficient business initiatives proved effective, resulting in revenue of ¥209.306 million, up 65.9% year on year, and segment profit of ¥128.566 million, up 91.6%.」

「As these initiatives proved effective, revenue was ¥599.475 million, up 15.5% from the previous fiscal year, and segment profit was ¥345.552 million, up 49.2%.」

「During the third quarter of the current consolidated cumulative period, search rankings for highly profitable keywords continued to recover, partly because published articles were maintained in response to search engine algorithm updates. Accordingly, referral revenue from media related to mobile telecommunications, the core field, was also on a recovery trend. Page views and referral revenue for media in other fields also remained firm. As a result, although the decline from the previous year in the first quarter (July–September 2021) was not completely offset, the business recovered to above the previous year's level in the third quarter (January–March 2022), as it had in the second quarter (October–December 2021). Revenue was ¥415.639 million, down 1.1% year on year, and segment profit was ¥239.179 million, up 18.5%.」

「During the second quarter of the current consolidated cumulative period, search rankings for highly profitable keywords continued to recover, partly because published articles were maintained in response to search engine algorithm updates. Accordingly, referral revenue from media related to mobile telecommunications, the core field, also showed signs of recovery. Page views and referral revenue for media in other fields also remained firm. As a result, although the decline from the previous year in the first quarter (July–September) was not completely offset, the three months of the second quarter (October–December) recovered to above the previous year's level. Revenue was ¥261.270 million, down 14.3% year on year, and segment profit was ¥143.717 million, down 8.5%.」

「Search rankings for highly profitable keywords have shown signs of recovery following maintenance of published articles in response to search engine algorithm updates, and referral revenue to the company's own services in the telecommunications field is also showing signs of recovery.」

「During the current consolidated fiscal year, referral revenue from telecommunications-related media to the company's own services decreased from the third quarter onward because search rankings for highly profitable keywords remained low. The company also increased staffing to strengthen the future earnings structure of this recently expanded business. As a result, revenue was ¥519.139 million, down 25.5% year on year, and segment profit was ¥231.545 million, down 51.9%.」

「During the third quarter of the current consolidated cumulative period, revenue from referrals to the company's own services through telecommunications-related media decreased because search rankings for highly profitable keywords remained low, as in the previous quarter. In addition, the company increased staffing to strengthen the future earnings structure of this recently expanded business. As a result, revenue was ¥420.121 million, down 2.1% year on year, and segment profit was ¥201.871 million, down 29.3%.」

「During the second quarter of the current consolidated cumulative period, growth in PV continued to be restrained, mainly due to the impact of changes made by Google to its core search engine algorithm in May and December 2020. However, advertising revenue from customers outside the Group increased, mainly through the Beginners media platform, resulting in higher revenue.」

「In this segment, we provide consumers seeking to make informed purchases with useful information to support their purchasing decisions through internet media, and operate the following 8 media platforms.」

「As people spent more time at home, the Beginners media platform, which helps users discover hobbies, provided information for spending time at home, including video streaming and book apps. As a result, total PV across all media reached a record high of 14.48 million in April 2020, and the scale of operations expanded substantially.」

「On 1 February 2020, the company also acquired the business of 最安修理ドットコム, one of Japan's largest repairer platforms, and expanded its service offering into the aftermarket, including product repairs and maintenance. In March 2020, page views increased to 13.42 million PV across the 6 media platforms.」

「During the second quarter of the current consolidated cumulative period, a temporary surge in demand occurred following the launch of new smartphones in September 2019. As a result, media related to mobile telecommunications, including SIMCHANGE, a media platform newly added through a business transfer in August 2019, performed well, and total monthly PV across the operated media exceeded 10 million.」

「During the first quarter of the current consolidated cumulative period, media related to mobile telecommunications performed well, including SIMCHANGE, a newly added media platform acquired through a business acquisition that provides information on low-cost SIMs and smartphones. Total monthly page views (PV) across the operated media exceeded 10 million.」

「In addition to expanding the purchasing areas served by the 2 new locations opened in the previous consolidated fiscal year (West Tokyo and Sapporo), the company has expanded into highly specialized products such as agricultural machinery and medical equipment, and is also pursuing the monetization of owned media and growth in the telecommunications business operated by its subsidiary 株式会社ＭＥモバイル.」

「・Diversification of the revenue base through the establishment of new services ⇒Operation of owned media leveraging Web marketing expertise」

「At the same time, we will test the acquisition of media revenue through the full-scale development of owned media leveraging the Web marketing expertise cultivated through our existing businesses, thereby working to further diversify our revenue base.」