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Financial Results Presentation3970Innovation Inc.Information and Communications, Services and Others

Supplementary Financial Results Materials (Detailed Text Version) for the First Quarter of the Fiscal Year Ending March 2027

In Q1 of the fiscal year ending March 2027, revenue declined year on year, while operating income (loss) turned from a loss to a profit as a result of cost reductions. The full-year forecasts for operating income (loss), ordinary income (loss) and net income were also revised upward.

Worth reading
32Immaterial
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
9
¥ millions (operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationFirst quarter of the fiscal year ending March 20276 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,472 Millions of yen-7.5%
Operating profit9 Millions of yen
Gross Profit MarginOnline Media Business: +2.7 percentage points year on year
Operating profit marginSegment profit margin of the Online Media Business: +2.2 percentage points year on year
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Decline in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Company-wide cost controls, reductions in the cost of sales and selling, general and administrative expenses, the streamlining of unprofitable businesses, improved operating efficiency, and a decline in revenue following the sale of the IFA services outsourcing division
New initiatives
  • Transition of IT Trend to a monthly subscription model
  • Build a model that circulates the Group's core database across businesses
  • Create content that is more likely to be cited by generative AI
  • Streamline unprofitable businesses and concentrate management resources on the IT Solutions Business
Key KPIsA metric the company considers important as a management benchmark.
  • Cumulative number of accounts in the IT Solutions Business901 Engagements
  • Online Media Business share of consolidated revenue50 %
  • IT Solutions Business share of consolidated revenue45 %
Segment results
  • Online Media Business
    Net Sales745 Millions of yen (YoY -8.4%)
    Segment profit219 Millions of yen (YoY -1.3%)
  • IT Solutions Business
    Net Sales660 Millions of yen (YoY +6.3%)
    Segment profit116 Millions of yen (YoY +829.4%)
  • Financial Platform Business
    Net Sales69 Millions of yen (YoY -55.8%)
    Segment Profit or Loss-18 Millions of yen
Medium-term management plan targets
From the fiscal year ending March 2027 through the fiscal year ending March 2029, focus on expanding the core database and improving profitability through data circulation
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales1,472 Millions of yen (YoY -7.5%)
Operating profit9 Millions of yen
Gross Profit MarginOnline Media Business: +2.7 percentage points year on year
Operating profit marginSegment profit margin of the Online Media Business: +2.2 percentage points year on year
Self-assessment against the planDecline in line with plan
Segment resultsSegment Online Media Business / Net Sales 745 Millions of yen (YoY -8.4%) / Segment profit 219 Millions of yen (YoY -1.3%), Segment IT Solutions Business / Net Sales 660 Millions of yen (YoY +6.3%) / Segment profit 116 Millions of yen (YoY +829.4%), Segment Financial Platform Business / Net Sales 69 Millions of yen (YoY -55.8%) / Segment Profit or Loss -18 Millions of yen
Breakdown of Factors Affecting the ChangeCompany-wide cost controls, reductions in the cost of sales and selling, general and administrative expenses, the streamlining of unprofitable businesses, improved operating efficiency, and a decline in revenue following the sale of the IFA services outsourcing division
Key KPIsIndicator name Cumulative number of accounts in the IT Solutions Business / Value 901 Engagements / Year on year against the same period last year Not disclosed, Indicator name Online Media Business share of consolidated revenue / Value 50 % / Year on year against the same period last year Not disclosed, Indicator name IT Solutions Business share of consolidated revenue / Value 45 % / Year on year against the same period last year Not disclosed
Medium-term management plan targetsFrom the fiscal year ending March 2027 through the fiscal year ending March 2029, focus on expanding the core database and improving profitability through data circulation
New initiativesTransition of IT Trend to a monthly subscription model, Build a model that circulates the Group's core database across businesses, Create content that is more likely to be cited by generative AI, Streamline unprofitable businesses and concentrate management resources on the IT Solutions Business
Items this document does not state (19)
Ordinary incomeNet incomeSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial 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 shift to operating profitability was driven by thorough company-wide cost controls and reductions in the cost of sales and selling, general and administrative expenses. The upward revision to the full-year forecasts was primarily attributable to higher operating income in the IT Solutions Business.

How to read this page

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Financial Results Materials (Detailed Text Version) for the First Quarter of the Fiscal Year Ending March 2027 | Innovation Inc. (3970) timely disclosure | Komori