Outlook for a Recovery in Revenue from the Fortune-Telling Content Business

「主力のデジタルコンテンツ及びLINEチャット占いの低迷により減収。」

「For the fiscal year ended August 2026, revenue fell 13.9% from the previous fiscal year to approximately ¥1.6 billion, as poor performance in the fortune-telling business coincided with higher upfront investment costs.」

「The launch of the new framework was delayed, resulting in insufficient support for new content. This also limited the benefits extending to content under operation, causing both revenue and profit to decline year on year.」

「Revenue from the fortune-telling business for the current fiscal year was ¥1,761 million, down 7.3% year on year, while operating profit was ¥385 million, down 20.9%.」

「The construction of a production structure for new content, including the production of 1 new content title per month, took time and weighed on earnings across the fortune-telling business. The new structure began operating in March.」

「Revenue from the fortune-telling business for the current fiscal year was ¥1,900 million, down 2.9% year on year, while operating profit was ¥487 million, down 10.7%.」

「Although new content and one-to-one fortune-telling services by phone and chat, which had increased revenue for several years, performed somewhat poorly during the cumulative second quarter period, the company's own media performed well. In addition, the company focused on strengthening the operation of profitable digital content for each distribution channel, resulting in a slight year-on-year increase in revenue. However, operating profit declined due to higher advertising and personnel expenses.」

「During the cumulative third quarter period, new content performed poorly and failed to offset the decline in revenue caused by the suspension or reduction of fortune-telling content distribution by ISPs, resulting in lower earnings.」

「During the cumulative second quarter period, earnings were affected by the suspension or reduction of fortune-telling content distribution by ISPs, poor performance by new content, and a downward trend in revenue from the long-term operation of existing content. In response, the company is currently reviewing its production and operating structures, including its organizational structure. As a result, revenue from the digital content business for the cumulative second quarter period was ¥634 million, down 11.0% year on year, while operating profit was ¥230 million, down 19.2%.」

「As a result, revenue from the digital content business for the cumulative first quarter period was ¥313 million, down 11.5% year on year, while operating profit was ¥117 million, down 20.5%.」

「As a result, revenue from the digital content business for the current fiscal year was ¥1,378 million, up 18.1% year on year, while operating profit was ¥541 million, up 39.2%.」

「As a result, revenue from the digital content business for the cumulative third quarter period was ¥1,047 million, up 28.6% year on year, while operating profit was ¥417 million, up 56.4%.」

「During the cumulative second quarter period, several ISPs decided to reduce the distribution of fortune-telling content, creating a factor behind the decline in earnings. However, as a result of focusing on strengthening content operations, content lifecycles lengthened and revenue increased year on year.」

「As a result of focusing on strengthening content operations, the lifecycle of each hit content title began to lengthen, while referrals from the company's own media also contributed, resulting in higher revenue year on year. Operating profit also increased significantly year on year, owing to profit growth accompanying the increase in revenue and lower labor costs resulting from a reduction in personnel.」

「As a result, revenue from the digital content business for the current fiscal year was ¥1,166 million, up 5.1% year on year, while operating profit was ¥388 million, down 2.0%.」

「As a result, revenue from the digital content business for the cumulative third quarter period was ¥814 million, up 0.3% year on year, while operating profit was ¥267 million, down 11.7%.」

「As a result, revenue from the fortune-telling content business for the cumulative second quarter period was ¥491 million, down 2.1% year on year, while operating profit was ¥180 million, down 19.7%.」

「As a result, revenue from the fortune-telling content business for the cumulative first quarter period was ¥253 million, up 3.3% year on year, while operating profit was ¥93 million, down 10.6%.」

「The horoscopes content service introduced measures including enhanced recommendation functions and a common points program, and secured a certain level of profit through thorough daily analysis and operations. However, both revenue and earnings declined year on year.」

「The horoscopes content service secured a certain level of profit through thorough daily analysis and operating measures, but revenue declined year on year, resulting in a decline in earnings as well.」

「The decline in members for Web browser content led to a year-on-year decrease in revenue, while earnings were flat.」

「In the horoscopes content service, the Company continued to implement measures to improve usability, including developing and implementing recommendation functions. However, the decline in members and shorter content lifespans continued to weigh on results, and both revenue and earnings declined.」

「We believe that the aforementioned development initiatives will contribute to earnings in the next fiscal year.」

「The Company is developing systems and adding functions to improve user retention and accessibility to various services. Although these initiatives have not yet contributed to revenue, the downturn in sales appears to be bottoming out.」

「The recovery in revenue from the fortune-telling content business took longer than expected.」

「As a result, revenue from the fortune-telling content business for the current fiscal year was ¥1,770 million, up 0.8% year on year, while operating profit was ¥540 million, up 5.6%.」

「As a result, revenue from the fortune-telling content business for the cumulative third quarter period was ¥1,328 million, up 1.9% year on year, while operating profit was ¥397 million, up 1.6%.」

「The shift toward freemium models across the content market caused membership fees and usage-based charges for monthly subscription content to continue declining, albeit gradually. In addition, during the cumulative second quarter period, the increase in advertising expenses did not produce results, resulting in declines in revenue and profit.」

「These initiatives resulted in a recovery trend in revenue during the fourth quarter of the current fiscal year. However, for the fiscal year as a whole, revenue and earnings fell below the previous year due to a decline in membership for existing fortune-telling content, sluggish growth in user acquisition, and the shortened lifespan of IP collaboration apps following changes in advertising placement rules based on the carrier's policy.」

「On the other hand, revenue recovery through the restructuring of user acquisition and the earnings structure had not yet materialized during the cumulative third quarter period.」

「In existing fortune-telling content, the decline in sales resulting from customer acquisition falling below expectations exceeded the sales increase from telephone fortune-telling and collaboration apps with other companies' IP, resulting in lower sales and lower profit for the fortune-telling content business as a whole.」

「Revenue from the fortune-telling content business declined during the current fiscal year due to a decrease in membership for subscription-based content and the absence of major hit content. However, as the decline gradually began to bottom out toward the end of the fiscal year, revenue is expected to rise gradually in the next fiscal year.」

「The decline in revenue bottomed out during the third quarter of the current fiscal year, and we expect revenue to rise gradually toward the end of the fiscal year.」