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Financial results presentation3970Innovation Inc.Information and Communications, Services and Others

Supplementary Financial Results Materials for the First Quarter of the Fiscal Year Ending March 2027

In Q1 FY2027/3, net sales declined year on year, while operating income improved from a loss to a profit of ¥9 million due to cost reductions. Full-year forecasts for operating income, ordinary income and net income were revised upward from the previous forecasts.

Worth reading
48Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
195
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 20277 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,472 million-7.5%
Operating profit¥9 million
Ordinary income¥5 million
Net income¥-53 million
Gross Profit MarginAmount not stated
Operating profit marginAmount not stated
Results for the three months of the current quarter
Net Sales
¥1,472 million
Operating profit (loss)
¥9 million
EBITDA
¥121 million
Ordinary profit or loss
¥5 million
Profit attributable to owners of parent for the quarter
¥-53 million
Full-year earnings forecast
Net Sales
¥7,030 million
Operating profit (loss)
¥280 million
EBITDA
¥769 million
Ordinary profit or loss
¥240 million
Profit attributable to owners of the parent
¥220 million
Annual Dividend
¥40
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Net sales declined as planned and were generally on track against the plan. Each segment also finished at the planned level.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Change in revenue¥-119 million
  • Change in cost of sales¥141 million
  • Change in SG&A expenses¥173 million
New initiatives
  • Expansion of IT Trend's monthly subscription model
  • Development of a customer data platform (CDP)
  • Cross-business marketing testing
  • Testing new businesses to expand member data
  • Content structuring and operational efficiency improvements using generative AI
Key KPIsA metric the company considers important as a management benchmark.
  • IT Trend visitors3,948,132 people
    Year on year against the same period last year-4.3%
  • Cumulative number of SHANON MARKETING PLATFORM and List Finder accounts901 Engagements
Segment results
  • Online Media Business
    Net Sales¥745 million
    Year-on-year change in revenue-8.4
    Segment profit¥219 million
    Segment profit, year on year-1.3
  • IT Solutions Business
    Net Sales¥660 million
    Year-on-year change in revenue6.3
    Segment profit¥116 million
    Segment profit, year on year829.4
  • Financial Platform Business
    Net Sales¥69 million
    Year-on-year change in revenue-55.8
    Segment Profit or Loss¥-18 million
Number of employees
Number of Employees311 people
As ofEnd of June 2026
Annual Dividend
Annual¥40 per share
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥1,472 million (YoY -7.5%)
Operating profit¥9 million
Ordinary income¥5 million
Net income¥-53 million
Gross Profit Margin非開示
Operating profit margin非開示
Results for the three months of the current quarterNet Sales ¥1,472 million / Operating profit (loss) ¥9 million / EBITDA ¥121 million / Ordinary profit or loss ¥5 million / Profit attributable to owners of parent for the quarter ¥-53 million
Full-year earnings forecastNet Sales ¥7,030 million / Operating profit (loss) ¥280 million / EBITDA ¥769 million / Ordinary profit or loss ¥240 million / Profit attributable to owners of the parent ¥220 million / Annual Dividend ¥40
Self-assessment against the planNet sales declined as planned and were generally on track against the plan. Each segment also finished at the planned level.
Segment resultsSegment Online Media Business / Net Sales ¥745 million / Year-on-year change in revenue -8.4 / Segment profit ¥219 million / Segment profit, year on year -1.3, Segment IT Solutions Business / Net Sales ¥660 million / Year-on-year change in revenue 6.3 / Segment profit ¥116 million / Segment profit, year on year 829.4, Segment Financial Platform Business / Net Sales ¥69 million / Year-on-year change in revenue -55.8 / Segment Profit or Loss ¥-18 million / Year-on-year change in segment profit/loss Not disclosed
Breakdown of Factors Affecting the ChangeFactors Change in revenue / Amount ¥-119 million, Factors Change in cost of sales / Amount ¥141 million, Factors Change in SG&A expenses / Amount ¥173 million
Key KPIsIndicator name IT Trend visitors / Value 3,948,132 people / Year on year against the same period last year -4.3 people, Indicator name Cumulative number of SHANON MARKETING PLATFORM and List Finder accounts / Value 901 Engagements / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 311 people / As of End of June 2026 / Change during the period Not disclosed / Hiring plan Not disclosed
Annual DividendAnnual ¥40 per share / Interim Not disclosed / End of period Not disclosed
New initiativesExpansion of IT Trend's monthly subscription model, Development of a customer data platform (CDP), Cross-business marketing testing, Testing new businesses to expand member data, Content structuring and operational efficiency improvements using generative AI
Items this document does not state (14)
Selling, general and administrative expensesProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout 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 company cited a company-wide review of the cost of sales and selling, general and administrative expenses, operational efficiency improvements using generative AI and other technologies, reassignment of surplus personnel, and productivity improvements. The main reason for the upward revision to the full-year forecasts was that the IT Solutions business had made progress in restructuring unprofitable operations and controlling selling, general and administrative expenses, resulting in a shift to a more profitable business structure.

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Supplementary Financial Results Materials for the First Quarter of the Fiscal Year Ending March 2027 | Innovation Inc. (3970) timely disclosure | Komori