Worth reading
59In focus
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
5
Operating profit margin (FY2028 target, %)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales-80.1%
基準 10,195Target2,028million / ¥100 million
Operating profit margin+3.0pt
基準 2,025Target2,028%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planNot disclosed → Actual for the fiscal year ended December 2025: sales of ¥10,195 million, operating profit of ¥173 million, net income of ¥375 million, and an operating profit margin of 1.7%. The Company held a total of 185 concerts and attracted approximately 1.43 million attendees, falling short of its attendance KPI.
Investment amount by sectorField Strategic investment: Concentrated investment in the development of original intellectual property / Amount Not disclosed / Allocation 60%, Field Infrastructure investment: Bringing the travel business in-house (CONCONTOWN) and building systems for data-driven marketing / Amount Not disclosed / Allocation 30%, Field Human capital investment: Recruiting highly specialized professionals and establishing education and training programs / Amount Not disclosed / Allocation 10%
Statements about the use of capital
Payout ratio / DOE policyWhile prioritizing growth through strategic investment, the Company aims to improve capital efficiency and deliver stable and sustainable dividends supported by business performance. The numerical levels and target period are Not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Key initiatives
01Deepening live experiences
02Organic growth through internally created intellectual property
03360-degree hospitality through vertical integration
04Music First
05A&R Enhancement
06Strategic Alliance
07Digital Marketing
08Right-sizing and consolidating venues
09Premiumizing the customer experience
10Bringing travel and accommodation arrangements in-house
11Insourcing
12External sales and platform development
13Developing joint businesses with distributors
14Diversifying the use of existing program archives
15Containing operating costs and optimizing workflows
16Executing a strategy of selection and concentration
17Fundamentally reforming the cost structure
18Transitioning to high-margin businesses
Plan assumptionsJapan's K-pop physical music exports: $68.45 million in 2024, forecast at $76.20 million in 2029, with an average growth rate of 2.2%, Continued yen depreciation against the KRW and USD is recognized as a risk (specific assumed exchange rates are Not disclosed), The Company is moving toward contract structures that incorporate the risk of yen depreciation (specific pricing assumptions are Not disclosed)
Segment targetSegment Entertainment Business / Sales target Not disclosed / Profit Target Not disclosed / Composition ratio target Approximately 90% of the business mix (2028), Segment Rights & Media business / Sales target Not disclosed / Profit Target Not disclosed
Size of the Target MarketMarket Japan's K-pop physical music exports / Scale $38.75 million in 2020, $68.45 million in 2024, and forecast at $76.20 million in 2029 / Growth rate Average 2.2% / Source Korea Customs Service
Risks identified by the company
Rising labor costs
Rising prices and energy costs
Historic yen depreciation
Concerts: Declining profits due to higher production costs, including labor, utilities and materials
Artists: Declining sales due to activity suspensions and other factors, and difficulty securing profits because of higher artist booking costs
Content: Intensifying OTT competition and higher acquisition prices for overseas content rights due to foreign exchange effects
Securing human resources: Rising wages due to labor shortages in the industry and the possibility of higher fixed costs from improved compensation
Legal: Risk of intellectual property infringement and increasing complexity of rights-clearance processes
Exchange rates: Sharp increases in the effective burden of artist booking and production costs and royalties due to yen depreciation
Reason for revision or withdrawal
To decisively optimize the portfolio in response to changes in the market environment, streamline unprofitable areas, and concentrate resources on the core businesses. In addition, rising costs caused by foreign exchange movements and inflation have made the limitations of the former model that prioritized attendance volumes apparent.
| Item | Details |
|---|---|
| Plan name | New Medium-Term Management Plan |
| Plan period | 2026-2028 |
| Progress against the plan | Formulated |
| Sales Target | ¥10,195 million (actual for the fiscal year ended December 2025) → Approximately ¥10 billion (FY2028 target) |
| Operating profit margin target | 1.7% (FY2025 actual) → At least 5.0% (FY2028 target) |
| Payout ratio / DOE policy | While prioritizing growth through strategic investment, the Company aims to improve capital efficiency and deliver stable and sustainable dividends supported by business performance. The numerical levels and target period are Not disclosed. |
| Investment amount by sector | Field Strategic investment: Concentrated investment in the development of original intellectual property / Amount Not disclosed / Allocation 60%, Field Infrastructure investment: Bringing the travel business in-house (CONCONTOWN) and building systems for data-driven marketing / Amount Not disclosed / Allocation 30%, Field Human capital investment: Recruiting highly specialized professionals and establishing education and training programs / Amount Not disclosed / Allocation 10% |
| Segment target | Segment Entertainment Business / Sales target Not disclosed / Profit Target Not disclosed / Composition ratio target Approximately 90% of the business mix (2028), Segment Rights & Media business / Sales target Not disclosed / Profit Target Not disclosed |
| Plan assumptions | Japan's K-pop physical music exports: $68.45 million in 2024, forecast at $76.20 million in 2029, with an average growth rate of 2.2%, Continued yen depreciation against the KRW and USD is recognized as a risk (specific assumed exchange rates are Not disclosed), The Company is moving toward contract structures that incorporate the risk of yen depreciation (specific pricing assumptions are Not disclosed) |
| Key initiatives | Deepening live experiences, Organic growth through internally created intellectual property, 360-degree hospitality through vertical integration, Music First, A&R Enhancement, Strategic Alliance, Digital Marketing, Right-sizing and consolidating venues, Premiumizing the customer experience, Bringing travel and accommodation arrangements in-house, Insourcing, External sales and platform development, Developing joint businesses with distributors, Diversifying the use of existing program archives, Containing operating costs and optimizing workflows, Executing a strategy of selection and concentration, Fundamentally reforming the cost structure, Transitioning to high-margin businesses |
| Results under the previous plan | Not disclosed → Actual for the fiscal year ended December 2025: sales of ¥10,195 million, operating profit of ¥173 million, net income of ¥375 million, and an operating profit margin of 1.7%. The Company held a total of 185 concerts and attracted approximately 1.43 million attendees, falling short of its attendance KPI. |
| Reason for revision or withdrawal | To decisively optimize the portfolio in response to changes in the market environment, streamline unprofitable areas, and concentrate resources on the core businesses. In addition, rising costs caused by foreign exchange movements and inflation have made the limitations of the former model that prioritized attendance volumes apparent. |
| Size of the Target Market | Market Japan's K-pop physical music exports / Scale $38.75 million in 2020, $68.45 million in 2024, and forecast at $76.20 million in 2029 / Growth rate Average 2.2% / Source Korea Customs Service |
| Risks identified | Rising labor costs, Rising prices and energy costs, Historic yen depreciation, Concerts: Declining profits due to higher production costs, including labor, utilities and materials, Artists: Declining sales due to activity suspensions and other factors, and difficulty securing profits because of higher artist booking costs, Content: Intensifying OTT competition and higher acquisition prices for overseas content rights due to foreign exchange effects, Securing human resources: Rising wages due to labor shortages in the industry and the possibility of higher fixed costs from improved compensation, Legal: Risk of intellectual property infringement and increasing complexity of rights-clearance processes, Exchange rates: Sharp increases in the effective burden of artist booking and production costs and royalties due to yen depreciation |
Items this document does not state (11)
Operating profit targetNet income targetROE targetROIC targetTreasury share acquisition policyCost of capitalSelf-assessment of PBR and share priceTotal investment planNon-financial targetsDate of board resolutionPublication date
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.To optimize the business portfolio in response to changes in the market environment, address rising costs caused by foreign exchange movements and inflation, and respond to the limitations of the former model that prioritized attendance volumes.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.