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Summary of Q&AFirst 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 Sales270.7 Hundred millions of yen+4.1%
Operating profit4.4 Hundred millions of yen-32.6%
Net income1.2 Hundred millions of yen-84.2%
Results for the three months of the current quarterRevenue of ¥27.07 billion, EBITDA of ¥740 million, operating profit of ¥440 million, and profit attributable to owners of the parent of ¥120 million. The first quarter of the fiscal year ending February 2027 covers the 3-month period from March to May.
Full-year earnings forecast
Net Sales
1,180 Hundred millions of yen
Operating profit
24 Hundred millions of yen
Ordinary income
20.5 Hundred millions of yen
Profit attributable to owners of the parent
12 Hundred millions of yen
EBITDA
41 Hundred 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 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.
Progress exceeding initial expectationsKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Assessment of the first quarter: higher revenue but lower profit, with progress exceeding initial expectations.
- Operating profit from the second quarter onward: profit is expected to decline in the second quarter, followed by profit growth from the third quarter onward, driven by the contribution from Seven Seas and a reduction in the strategic investment business's loss.
- Growth in the distribution business: existing distribution channels -0.2%; new distribution channels +4.3%.
- Strategic investment business: an operating loss of ¥250 million in the first quarter, expected to narrow to ¥280 million for the full year.
- Seven Seas: consolidated in the income statement from the second quarter, with a ¥280 million contribution to profit expected over 9 months of the current fiscal year.
- Full-year plan: revenue of ¥118.0 billion, operating profit of ¥2.4 billion, and net profit of ¥1.2 billion.
- Portfolio review: if ROIC is expected to fall below 8% from the third year after an acquisition onward, the Company will consider transforming, selling, or exiting the business, among other options.
- Achieving profitability in the strategic investment business: the Company aims to achieve profitability in the fiscal year ending February 2028.
- Synergies with Seven Seas: accelerating digital expansion and strengthening multilingual capabilities and content procurement.
- Shareholder returns: the Company generally targets a total payout ratio of at least 30% and expects to maintain an annual dividend of ¥40 per share for the fiscal year ending February 2027.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
First-quarter operating profit (loss) of the strategic investment business
26/2期 1Q operating profit (loss)
¥-146 million
International Business
¥-25 million
日本文芸社
¥-67 million
Flier Inc.
¥-21 million
Other
¥49 million
Shopping-center business
¥10 million
Adjustments
¥-7 million
Decrease in goodwill amortization
¥72 million
27/2期 1Q operating profit (loss)
¥-252 million
Full-year operating profit forecast
E-book distribution business
-2.2 Hundred millions of yen
Seven Seas contribution
2.8 Hundred millions of yen
日本文芸社
0.5 Hundred millions of yen
Flier Inc.
0.7 Hundred millions of yen
Other
0.9 Hundred millions of yen
Shopping-center business
-1.2 Hundred millions of yen
Adjustments
-1.8 Hundred millions of yen
Strategic investment business total
3.5 Hundred millions of yen
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 the second quarter of the fiscal year ending February 2027
Seven Seas contribution to current-year profit
9 months2.8 Hundred millions of yen
Seven Seas operating profit assumption
13.5 Hundred millions of yen
NotesAssumed conservatively against recent actual operating profit of approximately ¥1.6 billion
Exchange rate
Full-year standalone plan for Seven Seas159.93 JPY/USD
New initiatives
- Acquired Seven Seas Entertainment and will begin consolidating it in the income statement from the second quarter of the fiscal year ending February 2027
- Development of a translation system
- Strengthening security measures and the organizational structure for renewed growth
- Organizational reform at 日本文芸社
- Review of the business portfolio, including exits from or sales of unprofitable businesses
- Considering expanding overseas e-book distribution, multilingual support, and joint publishing through collaboration with Seven Seas
Segment results
E-book distribution businessRevenue growth was 4.1% year on year. Existing distribution channels: -0.2%; new distribution channels: +4.3%. Profit amount: not disclosed.
Strategic investment business
Operating profit (loss)
-2.5 Hundred millions of yen
yoyDeteriorated year on year
Seven Seas Entertainment
FY26 1Q revenue
22.5 Hundred millions of yen
Adjusted operating profit
5.3 Hundred millions of yen
Financial targets
ROIC threshold
8 ％
DetailsIf ROIC is expected to fall below the threshold from the third year after an acquisition onward, the Company will consider a pivot, a change in management, a sale, or an exit, among other options
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
PMI-related costs
1.5 Hundred millions of yen
Goodwill amortization
5.8 Hundred millions of yen
Market Size / Share
E-book share of the Japanese manga marketApproximately 75%
E-book share of the US manga marketApproximately 10%
Annual Dividend
Annual dividend per share
¥40
Payout ratio
Not disclosed (total payout ratio: 33% for the fiscal year ended February 2026 and forecast 50% for the fiscal year ending February 2027)Acquisition of treasury shares
None planned at present. The amount, number of shares, and period for the acquisition authorization have not been disclosed.| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending February 2027 |
| Net Sales | 270.7 Hundred millions of yen (YoY +4.1%) |
| Operating profit | 4.4 Hundred millions of yen (YoY -32.6%) |
| Net income | 1.2 Hundred millions of yen (YoY -84.2%) |
| Results for the three months of the current quarter | Revenue of ¥27.07 billion, EBITDA of ¥740 million, operating profit of ¥440 million, and profit attributable to owners of the parent of ¥120 million. The first quarter of the fiscal year ending February 2027 covers the 3-month period from March to May. |
| Full-year earnings forecast | Net Sales 1,180 Hundred millions of yen / Operating profit 24 Hundred millions of yen / Ordinary income 20.5 Hundred millions of yen / Profit attributable to owners of the parent 12 Hundred millions of yen / EBITDA 41 Hundred millions of yen |
| 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 | Progress exceeding initial expectations |
| Segment results | E-book distribution business Revenue growth was 4.1% year on year. Existing distribution channels: -0.2%; new distribution channels: +4.3%. Profit amount: not disclosed. / Strategic investment business Operating profit (loss) -2.5 Hundred millions of yen / yoy Deteriorated year on year / Seven Seas Entertainment FY26 1Q revenue 22.5 Hundred millions of yen / Adjusted operating profit 5.3 Hundred millions of yen |
| Breakdown of Factors Affecting the Change | First-quarter operating profit (loss) of the strategic investment business 26/2期 1Q operating profit (loss) ¥-146 million / International Business ¥-25 million / 日本文芸社 ¥-67 million / Flier Inc. ¥-21 million / Other ¥49 million / Shopping-center business ¥10 million / Adjustments ¥-7 million / Decrease in goodwill amortization ¥72 million / 27/2期 1Q operating profit (loss) ¥-252 million / Full-year operating profit forecast E-book distribution business -2.2 Hundred millions of yen / Seven Seas contribution 2.8 Hundred millions of yen / 日本文芸社 0.5 Hundred millions of yen / Flier Inc. 0.7 Hundred millions of yen / Other 0.9 Hundred millions of yen / Shopping-center business -1.2 Hundred millions of yen / Adjustments -1.8 Hundred millions of yen / Strategic investment business total 3.5 Hundred millions of yen |
| Assumptions Underlying the Business Outlook | Start of Seven Seas consolidation Seven Seas will be consolidated in the income statement from the second quarter of the fiscal year ending February 2027 / Seven Seas contribution to current-year profit 2.8 Hundred millions of yen / Seven Seas operating profit assumption 13.5 Hundred millions of yen / Exchange rate 159.93 JPY/USD |
| Risk amount incorporated into the outlook | PMI-related costs 1.5 Hundred millions of yen / Goodwill amortization 5.8 Hundred millions of yen |
| Financial targets | ROIC threshold 8 ％ |
| Annual Dividend | Annual dividend per share ¥40 / Interim Dividend Not disclosed / Year-end dividend Not disclosed |
| Payout ratio | Not disclosed (total payout ratio: 33% for the fiscal year ended February 2026 and forecast 50% for the fiscal year ending February 2027) |
| Acquisition of treasury shares | None planned at present. The amount, number of shares, and period for the acquisition authorization have not been disclosed. |
| Market Size / Share | E-book share of the Japanese manga market Approximately 75% / E-book share of the US manga market Approximately 10% |
| Key points of the Q&A | Assessment of the first quarter: higher revenue but lower profit, with progress exceeding initial expectations., Operating profit from the second quarter onward: profit is expected to decline in the second quarter, followed by profit growth from the third quarter onward, driven by the contribution from Seven Seas and a reduction in the strategic investment business's loss., Growth in the distribution business: existing distribution channels -0.2%; new distribution channels +4.3%., Strategic investment business: an operating loss of ¥250 million in the first quarter, expected to narrow to ¥280 million for the full year., Seven Seas: consolidated in the income statement from the second quarter, with a ¥280 million contribution to profit expected over 9 months of the current fiscal year., Full-year plan: revenue of ¥118.0 billion, operating profit of ¥2.4 billion, and net profit of ¥1.2 billion., Portfolio review: if ROIC is expected to fall below 8% from the third year after an acquisition onward, the Company will consider transforming, selling, or exiting the business, among other options., Achieving profitability in the strategic investment business: the Company aims to achieve profitability in the fiscal year ending February 2028., Synergies with Seven Seas: accelerating digital expansion and strengthening multilingual capabilities and content procurement., Shareholder returns: the Company generally targets a total payout ratio of at least 30% and expects to maintain an annual dividend of ¥40 per share for the fiscal year ending February 2027. |
| New initiatives | Acquired Seven Seas Entertainment and will begin consolidating it in the income statement from the second quarter of the fiscal year ending February 2027, Development of a translation system, Strengthening security measures and the organizational structure for renewed growth, Organizational reform at 日本文芸社, Review of the business portfolio, including exits from or sales of unprofitable businesses, Considering expanding overseas e-book distribution, multilingual support, and joint publishing through collaboration with Seven Seas |
Items this document does not state (11)
Ordinary incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesMedium-term management plan targetsCapital expendituresOrders received and order backlog
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 as the e-book distribution business remained firm. Operating profit declined due to the discontinuation of a high-margin service, weak performance at 日本文芸社, and investments in system development. The decline in net profit was greater because of the absence of the gain on the sale of MyAnimeList recorded in the same period of the previous year and the recognition of costs related to the acquisition of Seven Seas.
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