Higher Profit Despite Declining Revenue Through Cost Reductions in the Tutoring-School Business

「学習塾事業は昨年の秋以降から業績改善傾向にあり、前年からの改善見通しとしては小幅にとどめていますが、既存校舎の生徒数増加による増収効果、閉鎖に伴う固定費削減効果を見込んでいます。」

「In the second-quarter consolidated accounting period alone, covering 3 months from June to August 2026, revenue was ¥2,756 million, up 1.4% from the same period of the previous year, and segment profit was ¥594 million, up 11.2%, achieving steady growth in both revenue and profit. The improvement in profitability from capturing demand for summer courses and consolidating and integrating locations to create larger sites is clearly evident.」

「学習塾事業： 売上の増加に加え、統廃合による拠点大規模化等による収益性の改善が明確に表出。」

「Fundamental structural reforms, including the consolidation or closure of unprofitable schools and concentration on growth areas, are progressing steadily, and business performance is trending upward. In particular, higher profits were driven by the expansion of operating sites and optimization of the cost structure, as the company made progress in establishing a more efficient operating structure.」

「Meanwhile, the company worked to optimize its cost structure, reducing personnel expenses, advertising expenses, rent and other costs. As a result, in the current interim consolidated accounting period, segment revenue was ¥4,974 million, down 1.4% year on year, while segment profit was ¥793 million, up 4.6%.」

「The average number of students during the period declined 0.4%, but the company minimized the impact by thoroughly implementing measures to prevent COVID-19 infections and operating almost normally while also offering online classes. As a result, full-year segment revenue was ¥10,810 million, up 2.4% year on year, and segment profit was ¥2,009 million, up 10.2%.」

「In the cram-school business, the number of students, including end students in the franchise business, declined 2.4%, or 660 students, from the same period of the previous year owing to class closures to prevent the spread of infectious disease in spring 2020, resulting in lower revenue but higher profit. Although the number of students enrolling in early spring declined substantially, the company deployed alternative measures, including online lessons, and minimized the impact on results.」

「In the current second-quarter cumulative consolidated period, segment revenue was ¥5,463 million, down 2.1% year on year, but segment profit rose 2.0% to ¥1,144 million due to expense reductions and other measures. The segment therefore reported lower revenue but higher profit.」