Expansion of B2B and B2B2C solutions and diversification of the customer base

「The Company also put in place specific measures to expand revenue toward renewed growth in the Solutions Business, including the formal launch of high-value-added SaaS services such as Robot Report AI and the Workplace Asset-Building Solution, as well as the rollout of information solution services in overseas markets.」

「Recurring revenue 2,924 3,258 333 11.4% 3,530 271 8.3%」

「Monthly usage fees, a source of recurring revenue, grew steadily in the highly repeatable B2B business centered on information solution services. Kabutan (株探) Premium also performed well, supported by growth in paid subscribers and advertising revenue against a backdrop of active equity markets, as well as the effect of the monthly subscription price increase implemented in October 2024.」

「For SI and package solutions, because standby personnel required to respond promptly to customer requests put pressure on working capital, the Company plans to handle only the current order backlog and projects with favorable terms, and expects revenue in the next fiscal year to decline 20% from the current consolidated fiscal year」

「During the current interim consolidated accounting period, the paid subscription service Kabutan (株探) Premium continued to perform steadily. In information solutions, monthly usage fees increased as a result of price increases for some services in the previous consolidated fiscal year and a rise in the number of service implementations. In SI and package solutions, the acquisition of projects addressing continuing DX needs from large existing customers also contributed to earnings.」

「The Company is working to advance package-based solutions such as MINKABU Academy, an asset-building support service for workplace programs. In addition to the launch of monetization for online advisory services provided by group company 株式会社ミンカブアセットパートナーズ, the Company is diversifying the Solutions Business's revenue base by launching a new coupon (benefits) distribution platform service using Web3 technology.」

「From the current consolidated fiscal year, the Kabutan (株探) business has been classified as part of the Solutions Business to strengthen its coordination with that business. Revenue from the paid subscription service Kabutan (株探) Premium has also been transferred from the Media Business to the Solutions Business.」

「The Company also launched Kabutan Professional, a new B2B service bundling the Sales-Cue market information solution for financial institutions with Kabutan (株探) Premium.」

「During the first three months of the current consolidated fiscal year, higher monthly usage fees for information solutions, reflecting progress toward becoming the main vendor since the previous consolidated fiscal year, and the acquisition of new consulting and development projects for system solutions contributed to higher revenue. The increase exceeded the revenue decline resulting from the sale of Prop Tech plus株式会社 at the end of the previous consolidated fiscal year, and performance remained steady.」

「During the consolidated fiscal year, information solution services benefited from additional large contracts with existing customers and increased use of services such as US equity solutions, as well as the acquisition of a large consulting project for system solutions launched during the period. Consolidated subsidiary Prop Tech plus株式会社 also continued to contribute steadily to revenue growth.」

「During the fiscal year, the Company initially focused on consulting related to system construction using APIs (Application Programming Interfaces) for online securities companies and online banking-related financial institutions. However, industry demand exceeded the Company's expectations, and it has expanded the scope of its system solution services, having already begun providing solutions not only at the consulting stage but also at the development and operational support stages, including marketplace development through API integration, related marketing support, and digital payment infrastructure system development.」

「During the first six months of the current consolidated fiscal year, in addition to continued organic growth, the acquisition of a large consulting project for system solutions launched in the first three months and the continued steady contribution to revenue growth from consolidated subsidiary Prop Tech plus株式会社 contributed to higher revenue. In the second quarter, the Company also began providing a large-scale general-purpose information solution service to a major online securities company. As a result, sales were ¥1,780.242 million, up 27.2% year on year, and segment profit was ¥337.481 million, up 12.5%.」

「During the first three months of the current consolidated fiscal year, in addition to continued organic growth, revenue increased through the acquisition of initial implementation projects as progress was made toward becoming the main vendor for information solutions, the acquisition of consulting projects for system solutions launched in the first three months, and higher monthly usage fees from implementation projects acquired in the previous consolidated fiscal year. As a result, sales were ¥747.611 million, up 20.8% year on year, and segment profit was ¥112.949 million, up 5.4%.」

「In the solutions business, we will work to diversify target customer companies and increase customer spending by expanding information solutions offerings and applying AI technology across a broader range of uses. In systems solutions, we will expand our earnings base by using the customer base of our information solutions and our assets to provide systems solution services that primarily support more sophisticated systems investment and improved operational efficiency at financial institutions.」

「During the cumulative third-quarter period, revenue continued to increase through organic growth centered on recurring revenue such as monthly usage fees. However, initial and one-time revenue from new implementation projects was affected by a reaction to the acquisition of certain large spot projects with high profit margins during the same period of the previous year, as well as changes in the implementation timing of new projects. As a result, revenue for the cumulative third-quarter period was ¥2,079.420 million, up 16.8% year on year, while segment profit was ¥409.190 million, down 2.0%.」

「During the cumulative second-quarter period, revenue increased through continued organic growth, including initial and one-time revenue from new implementation projects. As a result, revenue for the cumulative second-quarter period was ¥1,399.668 million, up 25.4% year on year, and segment profit was ¥300.103 million, up 21.8%.」

「During the cumulative first-quarter period, in addition to continued organic growth, the acquisition of a large initial implementation project contributed to earnings. As a result, revenue for the cumulative first-quarter period was ¥618.944 million, up 31.8% year on year, and segment profit was ¥107.190 million, up 53.3%.」

「In addition, through making ロボット投信株式会社 a subsidiary, we acquired new corporate customers, including investment trust managers and distributors.」

「During the cumulative third-quarter period, in addition to continued organic growth, Prop Tech plus株式会社 made a steady contribution to earnings, with growth centered on monthly usage fee revenue. As a result, revenue for the cumulative third-quarter period was ¥1,780.574 million, up 127.3% year on year, and segment profit was ¥417.542 million, up 123.6%.」

「We determined that bringing ロボット投信 into our Group would enable further expansion of our business domain by expanding the Group’s investment trust-related solutions and customer base, and decided to make the company a consolidated subsidiary.」

「Furthermore, by making Prop Tech plus株式会社 and ロボット投信株式会社 consolidated subsidiaries, we expanded our corporate customer base from its previous focus on the sell side to include the buy side. We will seek to develop and acquire pioneering areas in which to provide solutions addressing the buy side’s management challenge of improving operational efficiency.」

「During the cumulative third-quarter period, we began offering “Minkabu Sales-Cue,” a new B2B information service for sales personnel at financial institutions. Recurring revenue, centered on monthly usage fees, grew steadily to ¥626.543 million.」

「In the solutions business, in addition to expanding sales of existing B2B2C services, primarily for securities companies, we expanded our customer base by launching new services for regional financial institutions and operating companies.」