Worth reading
76Important
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
7000
¥10,000 (improvement in operating loss from the first quarter to the second quarter)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings briefing transcriptSecond quarter of the fiscal year ending December 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesAmount not stated
Operating profitOperating loss
Results for the three months of the current quarterThe operating loss exceeded ¥100 million in the first quarter, while operating income was negative ¥30 million in the second quarter. Quarterly revenue exceeded ¥2 billion in both the first and second quarters.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Within expectations. The cross-industry and talent-matching businesses are behind plan or have fallen short of plan, but the company expects to recover the shortfall during the fiscal year and meet its full-year plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Improvement in operating loss from the first quarter to the second quarter: approximately ¥70 million. Factors behind the first-half loss: planned upfront investment in priority growth areas. Factor behind the decline in cross-industry revenue from the first quarter: delivery delays caused by geopolitical factors. Factor behind the shortfall against plan in the talent-matching business: contract termination following a customer's withdrawal from the business.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company expects stable profits from its secondary-market business, earnings contributions from the sports content business, expansion of its priority growth areas, and earnings contributions from new contracted projects in the second half. Numerical assumptions: Not disclosed.New initiatives
A capital and business alliance with Zero Gaming and a third-party allotment capital increase. Investment in app development and marketing to expand into multiple sports in the sports content business. Expansion to all 60 J.League clubs. Implementation of the Friend Cup feature. Sponsorship as a Silver Partner of the J.League All-Star DAZN Cup. Launch of operations for a new contracted project from the fourth quarter.Key KPIsA metric the company considers important as a management benchmark.
J.League Fantasy Card: primary market 48%, secondary market 52%. New user acquisitions: below plan. The number of fusion evolutions, entries into Fantasy, and benefit applications each increased by more than 30% from the first quarter. Entries for the opening round: approximately 200,000. Daily new-user acquisition: the highest ever for a single initiative.Unit price and quantity metricsThese figures show sales broken down by price and volume.
2.85 million packs sold, with selling prices in the low hundreds of yen. Marketplace transaction volume: 770,000 transactions. Real-card conversions: 140,000 for Edition 1 and 220,000 for Edition 2.Segment results
Gaming: Quarterly revenue exceeded ¥2 billion and operating income exceeded ¥300 million. New businesses: Revenue was 2.5 times the year-earlier level, while the loss narrowed. Cross-industry business: Revenue was 1.4 times the year-earlier level but declined from the first quarter. Talent matching and development solutions: Second-quarter revenue in both businesses exceeded first-quarter revenue.| Item | Details |
|---|---|
| Document type | Earnings briefing transcript |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Net Sales | 非開示 |
| Operating profit | Operating loss |
| Results for the three months of the current quarter | The operating loss exceeded ¥100 million in the first quarter, while operating income was negative ¥30 million in the second quarter. Quarterly revenue exceeded ¥2 billion in both the first and second quarters. |
| Self-assessment against the plan | Within expectations. The cross-industry and talent-matching businesses are behind plan or have fallen short of plan, but the company expects to recover the shortfall during the fiscal year and meet its full-year plan. |
| Segment results | Gaming: Quarterly revenue exceeded ¥2 billion and operating income exceeded ¥300 million. New businesses: Revenue was 2.5 times the year-earlier level, while the loss narrowed. Cross-industry business: Revenue was 1.4 times the year-earlier level but declined from the first quarter. Talent matching and development solutions: Second-quarter revenue in both businesses exceeded first-quarter revenue. |
| Breakdown of Factors Affecting the Change | Improvement in operating loss from the first quarter to the second quarter: approximately ¥70 million. Factors behind the first-half loss: planned upfront investment in priority growth areas. Factor behind the decline in cross-industry revenue from the first quarter: delivery delays caused by geopolitical factors. Factor behind the shortfall against plan in the talent-matching business: contract termination following a customer's withdrawal from the business. |
| Key KPIs | J.League Fantasy Card: primary market 48%, secondary market 52%. New user acquisitions: below plan. The number of fusion evolutions, entries into Fantasy, and benefit applications each increased by more than 30% from the first quarter. Entries for the opening round: approximately 200,000. Daily new-user acquisition: the highest ever for a single initiative. |
| Unit price and quantity metrics | 2.85 million packs sold, with selling prices in the low hundreds of yen. Marketplace transaction volume: 770,000 transactions. Real-card conversions: 140,000 for Edition 1 and 220,000 for Edition 2. |
| Assumptions Underlying the Business Outlook | The company expects stable profits from its secondary-market business, earnings contributions from the sports content business, expansion of its priority growth areas, and earnings contributions from new contracted projects in the second half. Numerical assumptions: Not disclosed. |
| New initiatives | A capital and business alliance with Zero Gaming and a third-party allotment capital increase. Investment in app development and marketing to expand into multiple sports in the sports content business. Expansion to all 60 J.League clubs. Implementation of the Friend Cup feature. Sponsorship as a Silver Partner of the J.League All-Star DAZN Cup. Launch of operations for a new contracted project from the fourth quarter. |
Items this document does not state (19)
Ordinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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.The first-half loss resulted from planned upfront investment in priority growth areas. The company attributed the second-quarter improvement to stable profit generation by its existing businesses and cost controls. It said that revenue declines in the cross-industry business were affected by delivery delays caused by geopolitical factors, while the shortfall against plan in the talent-matching business was caused by the termination of a contract following a specific customer's withdrawal from the business.
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