Worth reading
87Important
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
4.1
% (year-on-year change in revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFirst quarter of the fiscal year ending February 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥270.7 100 million+4.1%
Operating profit¥4.4 100 million-32.6%
Ordinary income¥2.03 100 million-69.7%
Net income¥1.2 100 million-84.2%
Operating profit margin1.6% (2.5% in the year-earlier period, down 0.9 percentage points)
Results for the three months of the current quarter
Net Sales¥27.07 billion
EBITDA¥740 million
Operating profit¥440 million
Ordinary income¥203 million
Profit attributable to owners of the parent¥129 million
Full-year earnings forecast
Net Sales¥118.00 billion
EBITDA¥4.10 billion
Operating profit¥2.40 billion
Profit attributable to owners of the parent¥1.20 billion
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 Sales22.9% (24.2% excluding the contribution from Seven Seas)
EBITDA18.1% (22.9% excluding the contribution from Seven Seas)
Operating profit18.4% (20.8% excluding the contribution from Seven Seas)
Profit attributable to owners of the parent10.8% (13.1% excluding the contribution from Seven Seas)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit was higher than initially projected. Q1 is progressing steadily against the initial plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year comparison of operating profit
Discontinuation of high-margin services-¥43 million
Changes to and strengthening of the international business organization, and translation system development costs-¥69 million
Weak performance at 日本文芸社-¥67 million
Increase in cancellations of the corporate version of Flier-¥21 million
Other-¥64 million
SC business revenue growth and investment optimization, among other factors+¥49 million
System development costs included in adjustments-JPY 7 million
Decrease in goodwill amortization included in adjustments+¥10 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Start of Seven Seas consolidationSeven Seas will be consolidated in the income statement from Q2 of the fiscal year ending February 2027, with revenue of ¥6.0 billion and operating profit of ¥280 million projected for the nine-month period.
Initial assumed exchange rate for Seven Seas$1 = ¥150
Exchange rate used to present Seven Seas results and other figures$1 = ¥159.93
SeasonalityRevenue and profit are lower in Q1 than in Q2 and Q4, which include extended holiday periods.
New initiatives
- Acquisition of Seven Seas and consolidation in the income statement from Q2 of the fiscal year ending February 2027
- Post-merger integration of Seven Seas and expansion of translated publishing of Japanese content
- Nationwide expansion of xIB JAPAN
- Partnership agreement with B.LEAGUE and the Fukuoka Stock Exchange
Key KPIsA metric the company considers important as a management benchmark.
- Year-on-year revenue growth in the distribution business4.1 %Year on year against the same period last year+4.1%
- Number of publishers2,200 or more
- Number of e-book retailers150 or more
- Number of newly registered content itemsApproximately 920,000 annually
- Number of Seven Seas titles confirmed for publication in FY26More than 1,124Year on year against the same period last year+8.0% (+83 titles)
- E-book market share30 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The company presented a Seven Seas premium title with a selling price of $139.99 (approximately ¥22,398), with more than 10,000 copies sold within four months of release.Segment results
E-book distribution business
Net Sales¥25.141 billion (equivalent to 3.9% year-on-year growth)
Operating profit¥1.159 billion
Strategic investment business
Net Sales¥2.263 billion (equivalent to 4.4% year-on-year growth)
Operating profit (loss)Operating loss of ¥252 million
Adjustments
Operating profit (loss)Operating loss of ¥466 million
Medium-term management plan targets
2030 VisionLaunch IB operations in all 46 prefectures, reach total membership of 5,000, and establish a position from which to lead Japan from the regions.
Financial targets
Debt-to-equity ratio1.0x or lower (0.8x at the end of May 2026)
Goodwill-to-net-assets ratio1.0x or lower (0.6x at the end of May 2026)
Equity ratioAt least 25% (27.6% at the end of May 2026)
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Against the $80 million acquisition price for Seven Seas, the effective acquisition risk is $47 million (approximately ¥7.5 billion, slightly less than 60% of the acquisition price). This amount is calculated after deducting net assets of $14 million and the tax effect of $19 million related to the amortization of tax goodwill and other items.Market Size / Share
E-book market size¥650 billion
The company's distribution volume¥193.0 billion in the company's distribution volume
The company's share30%
Capital expenditures
¥25 millions translation system development costs
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending February 2027 |
| Net Sales | ¥270.7 100 million (YoY +4.1%) |
| Operating profit | ¥4.4 100 million (YoY -32.6%) |
| Ordinary income | ¥2.03 100 million (YoY -69.7%) |
| Net income | ¥1.2 100 million (YoY -84.2%) |
| Operating profit margin | 1.6% (2.5% in the year-earlier period, down 0.9 percentage points) |
| Results for the three months of the current quarter | Net Sales ¥27.07 billion / EBITDA ¥740 million / Operating profit ¥440 million / Ordinary income ¥203 million / Profit attributable to owners of the parent ¥129 million |
| Full-year earnings forecast | Net Sales ¥118.00 billion / EBITDA ¥4.10 billion / Operating profit ¥2.40 billion / Profit attributable to owners of the parent ¥1.20 billion |
| Progress against full-year forecast | Net Sales 22.9% (24.2% excluding the contribution from Seven Seas) / EBITDA 18.1% (22.9% excluding the contribution from Seven Seas) / Operating profit 18.4% (20.8% excluding the contribution from Seven Seas) / Profit attributable to owners of the parent 10.8% (13.1% excluding the contribution from Seven Seas) |
| Self-assessment against the plan | Operating profit was higher than initially projected. Q1 is progressing steadily against the initial plan. |
| Segment results | E-book distribution business Net Sales ¥25.141 billion (equivalent to 3.9% year-on-year growth) / Operating profit ¥1.159 billion / Strategic investment business Net Sales ¥2.263 billion (equivalent to 4.4% year-on-year growth) / Operating profit (loss) Operating loss of ¥252 million / Adjustments Operating profit (loss) Operating loss of ¥466 million |
| Breakdown of Factors Affecting the Change | Year-on-year comparison of operating profit Discontinuation of high-margin services -¥43 million / Changes to and strengthening of the international business organization, and translation system development costs -¥69 million / Weak performance at 日本文芸社 -¥67 million / Increase in cancellations of the corporate version of Flier -¥21 million / Other -¥64 million / SC business revenue growth and investment optimization, among other factors +¥49 million / System development costs included in adjustments -JPY 7 million / Decrease in goodwill amortization included in adjustments +¥10 million |
| Key KPIs | Indicator name Year-on-year revenue growth in the distribution business / Value 4.1 % / Year on year against the same period last year +4.1%, Indicator name Number of publishers / Value 2,200 or more / Year on year against the same period last year Not disclosed, Indicator name Number of e-book retailers / Value 150 or more / Year on year against the same period last year Not disclosed, Indicator name Number of newly registered content items / Value Approximately 920,000 annually / Year on year against the same period last year Not disclosed, Indicator name Number of Seven Seas titles confirmed for publication in FY26 / Value More than 1,124 / Year on year against the same period last year +8.0% (+83 titles), Indicator name E-book market share / Value 30 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | The company presented a Seven Seas premium title with a selling price of $139.99 (approximately ¥22,398), with more than 10,000 copies sold within four months of release. |
| Assumptions Underlying the Business Outlook | Start of Seven Seas consolidation Seven Seas will be consolidated in the income statement from Q2 of the fiscal year ending February 2027, with revenue of ¥6.0 billion and operating profit of ¥280 million projected for the nine-month period. / Initial assumed exchange rate for Seven Seas $1 = ¥150 / Exchange rate used to present Seven Seas results and other figures $1 = ¥159.93 / Seasonality Revenue and profit are lower in Q1 than in Q2 and Q4, which include extended holiday periods. |
| Risk amount incorporated into the outlook | Against the $80 million acquisition price for Seven Seas, the effective acquisition risk is $47 million (approximately ¥7.5 billion, slightly less than 60% of the acquisition price). This amount is calculated after deducting net assets of $14 million and the tax effect of $19 million related to the amortization of tax goodwill and other items. |
| Medium-term management plan targets | 2030 Vision Launch IB operations in all 46 prefectures, reach total membership of 5,000, and establish a position from which to lead Japan from the regions. |
| Financial targets | Debt-to-equity ratio 1.0x or lower (0.8x at the end of May 2026) / Goodwill-to-net-assets ratio 1.0x or lower (0.6x at the end of May 2026) / Equity ratio At least 25% (27.6% at the end of May 2026) |
| Capital expenditures | ¥25 millions (translation system development costs) |
| Market Size / Share | E-book market size ¥650 billion / The company's distribution volume ¥193.0 billion in the company's distribution volume / The company's share 30% |
| New initiatives | Acquisition of Seven Seas and consolidation in the income statement from Q2 of the fiscal year ending February 2027, Post-merger integration of Seven Seas and expansion of translated publishing of Japanese content, Nationwide expansion of xIB JAPAN, Partnership agreement with B.LEAGUE and the Fukuoka Stock Exchange |
Items this document does not state (9)
Gross Profit MarginSelling, general and administrative expensesNumber of stores and locationsNumber of employeesAnnual DividendPayout ratioAcquisition of treasury sharesOrders received and order backlogKey points of the Q&A
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 increased, mainly due to growth in the e-book distribution business. Operating profit declined due to the discontinuation of high-margin services, weak performance at 日本文芸社, changes to and strengthening of the organizational structure, and investments in information and translation systems. Net income attributable to owners of the parent was affected by the gain on the sale of MyAnimeList recognized in the year-earlier period and the acquisition costs for Seven Seas recorded in the current period.
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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.