Worth reading
68In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
6.5
% (year-on-year increase in revenue)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFull fiscal year ended February 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,085.3 Hundreds of millions of yen+6.5%
Operating profit24.5 Hundreds of millions of yen-0.9%
Ordinary income25.5 Hundreds of millions of yen
Net income18.1 Hundreds of millions of yen+33.3%
Full-year earnings forecast
Fiscal year ending February 2027
Net Sales
1,180 Hundreds of millions of yen
Operating profit
24 Hundreds of millions of yen
Ordinary income
20.5 Hundreds of millions of yen
Profit attributable to owners of the parent
12 Hundreds of millions of yen
EBITDA
41 Hundreds of millions of yen
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales102.4％
EBITDA93.3％
Operating profit90.2％
Profit attributable to owners of the parent90.9％
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue exceeded the full-year forecast, while profit items came in below the initial forecastsKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Assessment of the fiscal year ended February 2026: revenue reached a record high and met the forecast, while profit fell short of the forecast
- Reasons for the operating profit shortfall: delays in improving the strategic investment business and investment in translation system development
- Plan for the fiscal year ending February 2027: revenue of ¥118.0 billion, operating profit of ¥2.40 billion and net income of ¥1.20 billion
- Factors driving the change in operating profit for the fiscal year ending February 2027: lower profit in the e-book distribution business, improvement in the strategic investment business and higher adjustments
- Factors behind the deterioration in progress during the first quarter of the fiscal year ending February 2027: seasonality, the end of a high-margin service, the timing of Seven Seas' consolidation and continued losses at 日本文芸社
- Growth rate of the distribution business: explanation of growth rates for existing and new distribution channels
- Improvement in the strategic investment business: loss narrowed following a ¥320 million year-on-year improvement
- Seven Seas' contribution to results: consolidation from the second quarter, with an assumed operating profit contribution of ¥280 million over 9 months
- Shareholder returns: maintaining the ¥40 dividend and forecasting a total payout ratio of 50%
- Revenue seasonality: revenue tends to be higher in the second and fourth quarters
- Review of the business portfolio: considering a pivot, sale, withdrawal and other options based on an 8% ROIC benchmark
- Background to the adoption of takeover defense measures: maintaining operations as a neutral and independent industry infrastructure provider
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Change in operating profit from the initial forecast of ¥2.72 billion to actual operating profit of ¥2.453 billion for the fiscal year ended February 2026
E-book distribution business+¥79 million
International Business-¥98 million
日本文芸社-¥136 million
Flier Inc.-¥69 million
Other+¥82 million
Shopping-center business+¥9 million
Adjustments-¥133 million
Change in operating profit from the previous year's actual ¥2.45 billion to the forecast ¥2.40 billion for the fiscal year ending February 2027
E-book distribution business-¥220 million
International Business+¥200 million (including a +¥280 million contribution from Seven Seas)
日本文芸社+¥50 million
Flier Inc.+¥70 million
Other+¥90 million
Shopping-center business-¥120 million
Adjustments-¥180 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Seven Seas adjusted operating profit (annual)Approximately ¥1.35 billion
Seven Seas goodwill amortization (annual)Approximately ¥750 million
Seven Seas PMI costs (annual)Approximately ¥200 million
Seven Seas contribution to results (annual)Approximately ¥380 million
Seven Seas contribution to results (9 months of the fiscal year ending February 2027)¥280 million
Timing of Seven Seas consolidationSecond quarter of the fiscal year ending February 2027
New initiatives
- Acquisition of Seven Seas Entertainment, scheduled for consolidation from the second quarter of the fiscal year ending February 2027
- Investment in developing a translation system to accelerate overseas expansion
- Strengthening security measures and the organizational structure for renewed growth
- Review of the business portfolio based on an 8% ROIC benchmark
Key KPIsA metric the company considers important as a management benchmark.
- Distribution business revenue growth rate108.1 ％
- Growth rate of existing distribution channels5 ％Prior-year period4
- Growth rate of new distribution channels3.1 ％Prior-year period4.9
- Growth rate of new distribution channels from July to February4.4 ％
Segment results
E-book distribution businessDescribes growth in existing and new distribution channels for revenue. Profit: not disclosed
Strategic investment business
Operating profit (loss)-¥630 million
Year on year against the same period last year+¥320 million improvement
Financial targets
ROIC benchmark of 8% (if the business is expected to fall below the benchmark from the third year after an acquisition onward, the company will consider pivoting the business, changing management, selling the business or withdrawing from it)Annual Dividend
Fiscal year ended February 2026 results¥40 per share (total dividends of ¥607 million)
FY2027/2 forecast¥40 per share
Payout ratio
not disclosed (total payout ratio was 33% for the fiscal year ended February 2026 and is forecast at 50% for the fiscal year ending February 2027; policy is 30% or higher)Acquisition of treasury shares
None planned at present. The company will make a flexible decision based on future business performance and share-price trends| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Full fiscal year ended February 2026 |
| Net Sales | 1,085.3 Hundreds of millions of yen (YoY +6.5%) |
| Operating profit | 24.5 Hundreds of millions of yen (YoY -0.9%) |
| Ordinary income | 25.5 Hundreds of millions of yen |
| Net income | 18.1 Hundreds of millions of yen (YoY +33.3%) |
| Full-year earnings forecast | Subject Fiscal year ending February 2027 / Net Sales 1,180 Hundreds of millions of yen / Operating profit 24 Hundreds of millions of yen / Ordinary income 20.5 Hundreds of millions of yen / Profit attributable to owners of the parent 12 Hundreds of millions of yen / EBITDA 41 Hundreds of millions of yen |
| Progress against full-year forecast | Net Sales 102.4％ / EBITDA 93.3％ / Operating profit 90.2％ / Profit attributable to owners of the parent 90.9％ |
| Self-assessment against the plan | Revenue exceeded the full-year forecast, while profit items came in below the initial forecasts |
| Segment results | E-book distribution business Describes growth in existing and new distribution channels for revenue. Profit: not disclosed / Strategic investment business Operating profit (loss) -¥630 million / Year on year against the same period last year +¥320 million improvement |
| Breakdown of Factors Affecting the Change | Change in operating profit from the initial forecast of ¥2.72 billion to actual operating profit of ¥2.453 billion for the fiscal year ended February 2026 E-book distribution business +¥79 million / International Business -¥98 million / 日本文芸社 -¥136 million / Flier Inc. -¥69 million / Other +¥82 million / Shopping-center business +¥9 million / Adjustments -¥133 million / Change in operating profit from the previous year's actual ¥2.45 billion to the forecast ¥2.40 billion for the fiscal year ending February 2027 E-book distribution business -¥220 million / International Business +¥200 million (including a +¥280 million contribution from Seven Seas) / 日本文芸社 +¥50 million / Flier Inc. +¥70 million / Other +¥90 million / Shopping-center business -¥120 million / Adjustments -¥180 million |
| Key KPIs | Indicator name Distribution business revenue growth rate / Value 108.1 ％ / Year on year against the same period last year Not disclosed, Indicator name Growth rate of existing distribution channels / Value 5 ％ / Prior-year period 4 ％, Indicator name Growth rate of new distribution channels / Value 3.1 ％ / Prior-year period 4.9 ％, Indicator name Growth rate of new distribution channels from July to February / Value 4.4 ％ / Prior-year period Not disclosed |
| Assumptions Underlying the Business Outlook | Seven Seas adjusted operating profit (annual) Approximately ¥1.35 billion / Seven Seas goodwill amortization (annual) Approximately ¥750 million / Seven Seas PMI costs (annual) Approximately ¥200 million / Seven Seas contribution to results (annual) Approximately ¥380 million / Seven Seas contribution to results (9 months of the fiscal year ending February 2027) ¥280 million / Timing of Seven Seas consolidation Second quarter of the fiscal year ending February 2027 |
| Financial targets | ROIC benchmark of 8% (if the business is expected to fall below the benchmark from the third year after an acquisition onward, the company will consider pivoting the business, changing management, selling the business or withdrawing from it) |
| Annual Dividend | Fiscal year ended February 2026 results ¥40 per share (total dividends of ¥607 million) / FY2027/2 forecast ¥40 per share |
| Payout ratio | not disclosed (total payout ratio was 33% for the fiscal year ended February 2026 and is forecast at 50% for the fiscal year ending February 2027; policy is 30% or higher) |
| Acquisition of treasury shares | None planned at present. The company will make a flexible decision based on future business performance and share-price trends |
| Key points of the Q&A | Assessment of the fiscal year ended February 2026: revenue reached a record high and met the forecast, while profit fell short of the forecast, Reasons for the operating profit shortfall: delays in improving the strategic investment business and investment in translation system development, Plan for the fiscal year ending February 2027: revenue of ¥118.0 billion, operating profit of ¥2.40 billion and net income of ¥1.20 billion, Factors driving the change in operating profit for the fiscal year ending February 2027: lower profit in the e-book distribution business, improvement in the strategic investment business and higher adjustments, Factors behind the deterioration in progress during the first quarter of the fiscal year ending February 2027: seasonality, the end of a high-margin service, the timing of Seven Seas' consolidation and continued losses at 日本文芸社, Growth rate of the distribution business: explanation of growth rates for existing and new distribution channels, Improvement in the strategic investment business: loss narrowed following a ¥320 million year-on-year improvement, Seven Seas' contribution to results: consolidation from the second quarter, with an assumed operating profit contribution of ¥280 million over 9 months, Shareholder returns: maintaining the ¥40 dividend and forecasting a total payout ratio of 50%, Revenue seasonality: revenue tends to be higher in the second and fourth quarters, Review of the business portfolio: considering a pivot, sale, withdrawal and other options based on an 8% ROIC benchmark, Background to the adoption of takeover defense measures: maintaining operations as a neutral and independent industry infrastructure provider |
| New initiatives | Acquisition of Seven Seas Entertainment, scheduled for consolidation from the second quarter of the fiscal year ending February 2027, Investment in developing a translation system to accelerate overseas expansion, Strengthening security measures and the organizational structure for renewed growth, Review of the business portfolio based on an 8% ROIC benchmark |
Items this document does not state (12)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsCapital expendituresOrders received and order backlogMarket Size / Share
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Revenue benefited from steady growth in existing distribution channels in the e-book distribution business and from new distribution channels launched in July 2025. Operating profit was affected by delays in improving 日本文芸社 and フライヤー, as well as investment in developing a translation system to accelerate overseas expansion.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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