Worth reading
75Important
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
15.6
¥100 million (upward revision to the forecast for net income attributable to owners of the parent)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFiscal year ending February 2027, second quarter10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥583.1 100 million+8.3%
Operating profit¥11.8 100 million-15.0%
Net income¥5 100 million-61.6%
Operating profit margin2.0% for the six months ended Q2, down 0.6 percentage points from 2.6% in the same period of the prior year
Results for the three months of the current quarterFor Q2 of the fiscal year ending February 2027, revenue was ¥31.242 billion, operating profit was ¥748 million, ordinary profit was ¥747 million, and net income attributable to owners of the parent was ¥379 million. Operating profit increased from ¥545 million in the same period of the prior year.
Full-year earnings forecast
Net Sales
¥1,180 100 million
EBITDA
¥41 100 million
Operating profit
¥24 100 million
Profit attributable to owners of the parent
¥27.6 100 million
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 Sales49.4%
EBITDA49.1%
Operating profit49.6%
Profit attributable to owners of the parent42.4%
E-book distribution business revenue50.6%
E-book distribution business operating profit53.4%
Strategic investment business revenue41.4%
Seven Seas revenue31.4%
Seven Seas operating profit27.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Consolidated revenue, EBITDA, and operating profit are expected to finish above the initial assumptions. The strategic investment business is progressing below plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Seven SeasImpact on operating income (loss)+¥75 million
- Firebrand groupImpact on operating income (loss)-¥109 million
- Other international businessesImpact on operating income (loss)-¥46 million
- 日本文芸社Impact on operating income (loss)-¥138 million
- Flyer IP and solutions businessImpact on operating income (loss)+¥14 million
- Other IP and solutions businessesImpact on operating income (loss)+¥72 million
- Shopping-center businessImpact on operating income (loss)-¥75 million
- AdjustmentsImpact on operating income (loss)+¥18 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Exchange rate assumed at the start of the fiscal year for Seven Seas' operating profit150 JPY/USD
- Exchange rate used for Seven Seas' actual results158.61 JPY/USD
New initiatives
- Sell the Firebrand group in October 2026 and concentrate management resources on growth areas
- Strengthen the overseas expansion of Japanese publishing content, centered on Seven Seas
- Strengthen the development of promotional and operational efficiency systems for domestic e-book retailers
- Roll out the regional entrepreneur support model developed by xIB JAPAN nationwide
Key KPIsA metric the company considers important as a management benchmark.
- E-book distribution business revenue growth rate5.1 %Year on year against the same period last year+5.1%
- Number of publishers2,200 or more
- Number of e-book retailers150 or more
- Number of new content registrations per yearApproximately 920,000
- Total e-book distribution value¥1,930 100 million
- Domestic e-book market share30 %
- Seven Seas print book revenue growth rate6.1 %Year on year against the same period last year+6.1%
- Seven Seas e-book and audiobook revenue growth rate14.7 %Year on year against the same period last year+14.7%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Seven Seas' Danmei BOX set had a selling price of $139.99, sales of 20,681 units, and approximately $2.9 million in revenue based on retail prices.Segment results
E-book distribution business
Net Sales¥52,263 million, up 5.1% year on year
Operating profit¥2,502 million, down 0.5% year on year
Strategic investment business
Net Sales¥6,296 million, up 37.7% year on year
Operating profit (loss)Operating loss of ¥399 million, deteriorating from a loss of ¥246 million in the same period of the prior year
Market Size / Share
E-book market size¥660 billion
Company market share30%
Annual Dividend
Annual dividend per share¥55
BreakdownYear-end dividend forecast: ¥55. Interim dividend: not disclosed
Payout ratio
Total payout ratio of 30% or more| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Fiscal year ending February 2027, second quarter |
| Net Sales | ¥583.1 100 million (YoY +8.3%) |
| Operating profit | ¥11.8 100 million (YoY -15.0%) |
| Net income | ¥5 100 million (YoY -61.6%) |
| Operating profit margin | 2.0% for the six months ended Q2, down 0.6 percentage points from 2.6% in the same period of the prior year |
| Results for the three months of the current quarter | For Q2 of the fiscal year ending February 2027, revenue was ¥31.242 billion, operating profit was ¥748 million, ordinary profit was ¥747 million, and net income attributable to owners of the parent was ¥379 million. Operating profit increased from ¥545 million in the same period of the prior year. |
| Full-year earnings forecast | Net Sales ¥1,180 100 million / EBITDA ¥41 100 million / Operating profit ¥24 100 million / Profit attributable to owners of the parent ¥27.6 100 million |
| Progress against full-year forecast | Net Sales 49.4% / EBITDA 49.1% / Operating profit 49.6% / Profit attributable to owners of the parent 42.4% / E-book distribution business revenue 50.6% / E-book distribution business operating profit 53.4% / Strategic investment business revenue 41.4% / Seven Seas revenue 31.4% / Seven Seas operating profit 27.0% |
| Self-assessment against the plan | Consolidated revenue, EBITDA, and operating profit are expected to finish above the initial assumptions. The strategic investment business is progressing below plan. |
| Segment results | E-book distribution business Net Sales ¥52,263 million, up 5.1% year on year / Operating profit ¥2,502 million, down 0.5% year on year / Strategic investment business Net Sales ¥6,296 million, up 37.7% year on year / Operating profit (loss) Operating loss of ¥399 million, deteriorating from a loss of ¥246 million in the same period of the prior year |
| Breakdown of Factors Affecting the Change | Factors Seven Seas / Impact on operating income (loss) +¥75 million, Factors Firebrand group / Impact on operating income (loss) -¥109 million, Factors Other international businesses / Impact on operating income (loss) -¥46 million, Factors 日本文芸社 / Impact on operating income (loss) -¥138 million, Factors Flyer IP and solutions business / Impact on operating income (loss) +¥14 million, Factors Other IP and solutions businesses / Impact on operating income (loss) +¥72 million, Factors Shopping-center business / Impact on operating income (loss) -¥75 million, Factors Adjustments / Impact on operating income (loss) +¥18 million |
| Key KPIs | Indicator name E-book distribution business revenue growth rate / Value 5.1 % / Year on year against the same period last year +5.1%, 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 new content registrations per year / Value Approximately 920,000 / Year on year against the same period last year Not disclosed, Indicator name Total e-book distribution value / Value ¥1,930 100 million / Year on year against the same period last year Not disclosed, Indicator name Domestic e-book market share / Value 30 % / Year on year against the same period last year Not disclosed, Indicator name Seven Seas print book revenue growth rate / Value 6.1 % / Year on year against the same period last year +6.1%, Indicator name Seven Seas e-book and audiobook revenue growth rate / Value 14.7 % / Year on year against the same period last year +14.7% |
| Unit price and quantity metrics | Seven Seas' Danmei BOX set had a selling price of $139.99, sales of 20,681 units, and approximately $2.9 million in revenue based on retail prices. |
| Assumptions Underlying the Business Outlook | Item Exchange rate assumed at the start of the fiscal year for Seven Seas' operating profit / Value 150 JPY/USD, Item Exchange rate used for Seven Seas' actual results / Value 158.61 JPY/USD |
| Annual Dividend | Annual dividend per share ¥55 / Breakdown Year-end dividend forecast: ¥55. Interim dividend: not disclosed |
| Payout ratio | Total payout ratio of 30% or more |
| Market Size / Share | E-book market size ¥660 billion / Company market share 30% |
| New initiatives | Sell the Firebrand group in October 2026 and concentrate management resources on growth areas, Strengthen the overseas expansion of Japanese publishing content, centered on Seven Seas, Strengthen the development of promotional and operational efficiency systems for domestic e-book retailers, Roll out the regional entrepreneur support model developed by xIB JAPAN nationwide |
Items this document does not state (12)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders 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 benefited from growth in the e-book distribution business and the start of Seven Seas' consolidation in the income statement. Operating profit was affected by the discontinuation of a high-margin service, weak performance at 日本文芸社, and deteriorating earnings at the Firebrand group. However, strong performance in the e-book distribution business and the impact of campaigns limited the decline. The upward revision to the net income forecast reflects the expected recognition of a ¥1.56 billion extraordinary gain in the third quarter from the sale of the Firebrand group.
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.