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Presentation materials for financial results3970Innovation Inc.Information and Communications, Services and Others

Supplementary Financial Results Materials for the Fiscal Year Ending March 2026

Although revenue increased due to the consolidation of SHANON Inc., operating profit was negative because of declines in revenue from the online media and financial platform businesses, goodwill amortization and depreciation and amortization associated with the consolidation of SHANON Inc., and upfront investment in new businesses. For the fiscal year ending March 2027, the Company plans to return to profitability through cost reductions and the expansion of new revenue models.

Worth reading
46Recurring
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
30.4
Year-on-year change (revenue, %)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 2026, full year8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,968 million+30.4%
Operating profit¥-248 million
Ordinary income¥-334 million
Net income¥-457 million
Full-year earnings forecast
Net Sales
¥7,030 million
Operating profit (loss)
¥130 million
EBITDA
¥619 million
Ordinary profit or loss
¥96 million
Profit attributable to owners of the parent
¥25 million
Dividends
¥40
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Increase in revenue from the consolidation of SHANON Inc.¥2,538 million
  • Decrease in revenue excluding SHANON Inc.¥-913 million
  • Change in cost of sales at SHANON Inc.¥-834 million
  • Change in cost of sales excluding SHANON Inc.¥398 million
  • Change in selling, general and administrative expenses at SHANON Inc.¥-1,523 million
  • Change in selling, general and administrative expenses excluding SHANON Inc.¥-266 million
  • Of which, goodwill amortization, depreciation and amortization, and other expenses¥-219 million
New initiatives
  • Implementation of single sign-on (SSO)
  • Launch of IT Trend Money
  • Sales collaboration and feature integration between List Finder and SHANON MARKETING PLATFORM
  • Promotion of cross-selling and cross-use across the group
  • Launch of an LTV-based model using the member database
Key KPIsA metric the company considers important as a management benchmark.
  • IT Trend visitors13,014,666 People cumulative for the full fiscal year
    Year on year against the same period last year-33.9%
  • Products listed on IT Trend8,377 Product
    Year on year against the same period last year+137.4%
  • bizplay registered users138,627 people
Segment results
  • Online Media Business
    Net Sales¥3,729 million (YoY -6.1%)
    Segment profit¥1,189 million (YoY -22.0%)
  • IT Solutions Business
    Net Sales¥2,914 million (YoY +627.4%)
    Segment profit¥378 million (YoY +172.8%)
  • Financial Platform Business
    Net Sales¥332 million (YoY -65.8%)
    Segment loss¥-197 million
Financial targets
The actual equity ratio was 36.9%, while the target value was Not disclosed
Market Size / Share
The materials state that the Company is promoting an expanded presence in Japan's domestic marketing automation market, but figures for market size and market share were Not disclosed
Number of employees
Number of Employees333 people
As ofEnd of March 2026
Annual Dividend
Annual dividend per share¥40
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥6,968 million (YoY +30.4%)
Operating profit¥-248 million
Ordinary income¥-334 million
Net income¥-457 million
Full-year earnings forecastNet Sales ¥7,030 million / Operating profit (loss) ¥130 million / EBITDA ¥619 million / Ordinary profit or loss ¥96 million / Profit attributable to owners of the parent ¥25 million / Dividends ¥40
Segment resultsSegment Online Media Business / Net Sales ¥3,729 million (YoY -6.1%) / Segment profit ¥1,189 million (YoY -22.0%), Segment IT Solutions Business / Net Sales ¥2,914 million (YoY +627.4%) / Segment profit ¥378 million (YoY +172.8%), Segment Financial Platform Business / Net Sales ¥332 million (YoY -65.8%) / Segment loss ¥-197 million
Breakdown of Factors Affecting the ChangeIncrease in revenue from the consolidation of SHANON Inc. ¥2,538 million, Decrease in revenue excluding SHANON Inc. ¥-913 million, Change in cost of sales at SHANON Inc. ¥-834 million, Change in cost of sales excluding SHANON Inc. ¥398 million, Change in selling, general and administrative expenses at SHANON Inc. ¥-1,523 million, Change in selling, general and administrative expenses excluding SHANON Inc. ¥-266 million, Of which, goodwill amortization, depreciation and amortization, and other expenses ¥-219 million
Key KPIsIndicator name IT Trend visitors / Value 13,014,666 People (cumulative for the full fiscal year) / Year on year against the same period last year -33.9 People (cumulative for the full fiscal year), Indicator name Products listed on IT Trend / Value 8,377 Product / Year on year against the same period last year 137.4 Product, Indicator name bizplay registered users / Value 138,627 people / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 333 people / As of End of March 2026
Financial targetsThe actual equity ratio was 36.9%, while the target value was Not disclosed
Annual DividendAnnual dividend per share ¥40 / Interim Not disclosed / End of period Not disclosed
Market Size / ShareThe materials state that the Company is promoting an expanded presence in Japan's domestic marketing automation market, but figures for market size and market share were Not disclosed
New initiativesImplementation of single sign-on (SSO), Launch of IT Trend Money, Sales collaboration and feature integration between List Finder and SHANON MARKETING PLATFORM, Promotion of cross-selling and cross-use across the group, Launch of an LTV-based model using the member database
Items this document does not state (16)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsPayout ratioAcquisition 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 increased due to the consolidation of SHANON Inc. In the online media business, traffic from search declined as generative AI became more widespread. In the financial platform business, the benefit from the sale of the outsourced operations division was limited. Operating profit was affected by goodwill amortization, depreciation and amortization and other expenses associated with the consolidation of SHANON Inc., as well as upfront investment in new business development and the construction of a data platform.

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Supplementary Financial Results Materials for the Fiscal Year Ending March 2026 | Innovation Inc. (3970) timely disclosure | Komori