Dependence on Changes to Search Engine Specifications

「This was because search engines and advertising distributors revised their advertising-distribution standards, including traffic-quality controls and measures against fraudulent advertising, against the backdrop of increased mass access by generative-AI bots to our financial media.」

「If search engine specification changes, including the use of generative AI by Google LLC and others, are significantly more extensive and rapid than the Group expects, and the Group’s analysis and countermeasures are inadequate or inappropriate, user acquisition through search may stagnate, affecting the Group’s financial condition and operating results.」

「In addition to the soft market environment for network and affiliate advertising, we recognize an uncertain business environment caused by factors including algorithm changes and the rise of AIO (AI Optimization, the concept of optimizing operations and services using AI).」

「Regarding so-called third-party cookie regulations, although Google LLC has changed its policy, the industry as a whole continues to move toward greater emphasis on privacy.」

「Regarding the impact of cannibalization among the Group’s affiliate sites on performance-based advertising, the company transferred part of the competing affiliate sites to 「livedoor Choice」 and implemented other measures, including the use of Group media such as 「Kabutan（株探）」. As described above, the company has successfully recovered to a level exceeding its plan. In addition, against a backdrop of growing interest among asset-building investors in investment information, including following the launch of the new NISA, traffic to 「MINKABU（みんかぶ）」 remained strong toward year-end, and the business environment continues to recover.」

「In addition to transferring the competing affiliate site to 「livedoor Choice」, the company is using media such as 「Kabutan（株探）」 and pursuing revenue generation that leverages the characteristics of vertical media, which is less dependent on advertising revenue. Progress is being made in establishing a structure capable of supporting continued sales growth.」

「Regarding the impact of cannibalization on performance-based advertising in the previous fiscal year, the company took steps to transfer the competing affiliate site to 「livedoor Choice」. Although the business is still in the process of recovering, the effects of these measures are gradually becoming evident.」

「To address the cannibalization, the company launched the lifestyle-focused affiliate site 「livedoor Choice」 in December 2022 and took steps to transfer the affiliate business that had been competing with the other site to 「livedoor Choice」. The effects of these measures have already been confirmed.」

「During the cumulative third quarter, changes to web search engine specifications and other factors caused cannibalization between the two core affiliate sites operated on minkabu.co.jp and within minkabu.jp. Search rankings for both sites fell significantly, adversely affecting high-margin performance-based advertising revenue, which remained below the level of the same period of the previous year. In December 2022, the company launched the lifestyle-focused affiliate site 「livedoor Choice」 and took steps to resolve the cannibalization by transferring the affiliate business operated on minkabu.co.jp to 「livedoor Choice」. The effects of these measures have already been confirmed.」

「In the Group’s media business, the company maintains high margins by using web search engine optimization as its primary user acquisition channel.」

「In its media business, the company uses web search engine optimization as its primary user acquisition channel. During the cumulative third quarter, its flagship sites, including 「みんなの株式」 and 「株探（Kabutan）」, as well as its satellite sites, maintained high rankings for major search keywords and performed well.」

「In its media business, the company uses web search engine optimization as its primary user acquisition channel. During the cumulative first quarter, its flagship sites, including 「みんなの株式」 and 「株探（Kabutan）」, as well as its satellite sites, maintained high rankings for major search keywords and performed well.」

「In its media business, the company maintains high margins by using search engine optimization as its primary user acquisition channel. However, if search engines, including Google Inc., make major and rapid specification changes beyond the company’s expectations and the company is unable to respond adequately, user acquisition through search may stagnate.」