Strengthening the revenue base of both the media and solutions businesses

「As a result, revenue for the current consolidated fiscal year was ¥4,696,547 thousand, down 22.8% year on year, while segment profit was ¥83,352 thousand, compared with a loss of ¥2,188,938 thousand in the previous consolidated fiscal year, resulting in a return to profitability.」

「During the interim consolidated accounting period, these measures enabled us to return to consolidated operating profitability in the first quarter (April 2025 through the end of June 2025) and achieve monthly operating profitability in every month of the second quarter (July 2025 through the end of September 2025). Progress toward building the stable earnings structure that is an immediate management priority was therefore in line with plan.」

「Going forward, we will focus on improving profitability and pursue our role as a “stable earnings engine” that provides the foundation for our cash flow.」

「During the interim consolidated accounting period, the advertising market remained slow to recover in the Media Business and revenue, particularly from performance-based advertising, remained weak. However, revenue diversification measures for advertising revenue promoted since the previous consolidated fiscal year began to contribute, and 株式会社フロムワン, made a wholly owned subsidiary on 1 September 2023, contributed to consolidation. In the Solutions Business, revenue exceeded the previous year’s level due to sustained growth in recurring revenue and an increase in spot revenue, mainly from SI and packaged solutions.」

「As a result, the Company was positioned to achieve results in revenue diversification under the medium-term plan more than one year ahead of schedule.」

「Under the medium-term plan, the Company intended to raise the proportion of non-advertising revenue to at least 20% by the fiscal year ending March 2026 by generating various types of business revenue through effective use of the strong user engagement of each vertical media platform in the Media Business, thereby transforming its revenue structure into one less vulnerable to advertising market conditions. As described above, measures toward this goal were put into concrete form ahead of schedule during the consolidated fiscal year. Through unplanned aggressive investment to achieve the goal, the proportion of non-advertising revenue had already reached 17% in the fiscal year ended March 2024, and the Company expects to bring forward the medium-term plan’s milestone for the Media Business by more than one year.」

「During the first six months of the fiscal year, revenue increased substantially from the first six months of the previous fiscal year due to the contribution from consolidating 株式会社ライブドア, which became a subsidiary on 28 December 2022, with 31 December 2022 as the deemed acquisition date, synergies with the Company’s existing assets, and autonomous growth in the Solutions Business. In terms of earnings, however, the Company remained in the process of recovering from short-term earnings pressure.」

「As a result, revenue for the first three months of the fiscal year was ¥1,304 million, up 132.2% year on year, while segment loss was ¥91 million, compared with segment profit of ¥137 million in the first three months of the previous fiscal year.」

「During the consolidated fiscal year, the Media Business was affected by the global slowdown in the advertising market, particularly in ad-network advertising, and performance-based advertising revenue declined due to changes to web search engine specifications. Nevertheless, revenue reached a record high through the contribution from making 株式会社ライブドア a consolidated subsidiary and continued steady growth in the Solutions Business.」

「In the Media Business, performance-based advertising revenue was negatively affected by the global slowdown in the advertising market and changes to web search engine specifications, while the Solutions Business continued to grow steadily year on year and progressed largely in line with the initial plan for the fiscal year.」

「In paid revenue, monthly usage fees from subscription-based income generated by paid services remained solid, while initial implementation revenue was recorded from the corporate OEM offering of the asset-building management tool MINKABU ASSET PLANNER. As a result, revenue for the first six months of the fiscal year was ¥1,082 million, up 4.6% year on year, and segment profit was ¥204 million, down 36.7%.」

「The use of listing advertising continued to contribute to revenue growth in performance-based advertising. Direct advertising and monthly usage fees from subscription-based income generated by paid services also remained solid. As a result, revenue for the first three months of the fiscal year was ¥644 million, up 25.7% year on year, and segment profit was ¥182 million, up 12.9%.」

「Advertising revenue benefited from strong performance by high-margin direct advertising, continued use of listing advertising in performance-based advertising, and sales promotion with external partners. For paid revenue, we continued developing additional functions for the U.S. stock and Japan-U.S. bundled versions of Kabutan (株探) Premium and アセプラ, which were launched by the end of the second quarter, to drive full-scale expansion. We also promoted awareness through various forms of cooperation with 株式会社日本経済新聞社 and 株式会社QUICK, our capital and business alliance partners, as well as external marketing.」

「Advertising revenue benefited from solid direct advertising, continued use of listing advertising in performance-based advertising, and sales promotion with external partners. For the paid services launched by the end of the second quarter, namely the U.S. stock and Japan-U.S. bundled versions of Kabutan (株探) Premium and アセプラ, we promoted various initiatives, including adding functions, to drive full-scale expansion. As a result, revenue for the first nine months of the fiscal year was ¥1,549 million, up 57.7% year on year, and segment profit was ¥474 million, up 42.5%.」

「Paid revenue also expanded as Kabutan (株探) Premium, which added two services in June 2021, the U.S. stock version and a bundled version covering Japanese and U.S. stocks, benefited from an increase in paying users and migration to the higher-priced bundled version. アセプラ, launched on 28 August, began generating revenue in September.」

「During the first three months of the fiscal year, as described above, the investor information site みんなの株式 was rebranded as the asset-building information media platform MINKABU, and the U.S. stock version of the stock information specialist media platform Kabutan (株探) was launched. Total average monthly unique users across the Group’s media sites increased by 250,000 year on year to 9.70 million, while visiting users increased by 2.39 million to 30 million. In advertising, direct advertising remained solid, while the use of performance-based listing advertising was promoted, contributing to revenue growth. Paid revenue also expanded steadily through Kabutan (株探) Premium.」

「Accordingly, in the Media Business, we will pursue various revenue opportunities by further expanding our large investor user base, which had average monthly unique users of 9.22 million and more than 27.89 million visiting users in the fiscal year ended March 2021, promoting partnerships with external partners using that user base, and increasing revenue per user by introducing paid services that provide more in-depth information. In the Solutions Business, in light of its business characteristics centered on information-focused fintech, we will focus on providing a range of information solutions addressing the needs of a broad range of financial institutions, thereby strengthening the revenue base.」

「During the first nine months of the fiscal year, we continued adding functions to existing information sites. Average monthly unique users, or UU, across all media sites operated by the Group reached 8.64 million, while visiting users reached 25.87 million, representing year-on-year increases of 1.52 million and 4.77 million, respectively. Although some advertising rates remained weak due to the external environment, the paid service 株探プレミアム grew steadily and paid revenue increased substantially.」

「During the first three months of the fiscal year, average monthly unique users, or UU, across all media sites operated by the Group reached 9.45 million, up 2.44 million year on year, while visiting users reached 27.61 million, up 6.28 million. Advertising revenue remained solid as the user base expanded. In addition, the paid service 株探プレミアム continued to grow steadily, driving an increase in paid revenue.」

「Accordingly, in the Media Business, we will pursue various revenue opportunities by further expanding our large investor user base, which had average monthly unique users of 7.78 million and more than 22.4 million visiting users in the fiscal year ended March 2020, promoting partnerships with external partners using that user base, and increasing revenue per user by introducing paid services that provide more in-depth information. In the Solutions Business, in light of its business characteristics centered on information-focused fintech, we will focus on providing a range of information solutions addressing the needs of a broad range of financial institutions, thereby strengthening the revenue base.」

「Advertising revenue performed strongly as the user base expanded and search rankings remained favorable. Paid revenue also remained solid, led by 株探プレミアム, launched in the fiscal year ended March 2018.」

「Advertising revenue performed strongly as the user base expanded. Paid revenue also remained solid, led by 株探プレミアム, launched in the fiscal year ended March 2018.」

「As a result, average monthly unique users across all sites during the first three months of the fiscal year increased by 1.05 million year on year to approximately 6.96 million, while visiting users increased by 1.69 million to approximately 21.27 million. Advertising revenue performed strongly as the user base expanded. Paid revenue also remained solid, led by 株探プレミアム, launched in the fiscal year ended March 2018.」

「We recognize further strengthening of the revenue base as a management priority.」