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Financial results presentation4819Digital Garage,Inc.Information and Communications, Services and Others

Earnings Presentation Materials for the Fiscal Year Ending March 2026

For the fiscal year ending March 2026, consolidated profit before tax turned from a loss to a profit, mainly due to the base effect from investment valuation losses recorded in the previous fiscal year. Meanwhile, the Payments business reported lower profit due to merchant cancellations and higher fixed costs. The company outlined a transition to a new medium-term management plan centered on the reorganization of the Media business, moving the Investment business off balance sheet, and focused investment in payments and financial services.

Worth reading
65In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
13182
¥ million (year-on-year change in consolidated profit before tax)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Ordinary income¥2,966 million profit before tax
Results for the three months of the current quarter
Payment transaction volume
¥2.8 trillion +42.9%FY26.3 4Q
PS segment revenue
¥6,887 million +9.3%FY26.3 4Q
PS segment profit
¥2,350 million +0.6%FY26.3 4Q
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Behind plan / fell short of the ¥10 trillion target for the previous fiscal year / investment business revenue and shareholder returns are expected to be achieved ahead of schedule
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Year-on-year change in consolidated profit before tax¥13,182 million
  • Base effect from valuation losses on GII and crypto-related investments
  • New investments in GII operating investment securities¥172 million
  • Decrease in carrying value due to sales¥-615 million
  • Changes in fair value, excluding foreign exchange effects¥-3,252 million
  • Other¥-541 million
  • Foreign Exchange Effects¥2,801 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate
  • 31 March 2025: ¥149.5/USD
  • 31 March 2026: ¥159.9/USD
New initiatives
  • Tender offer for shares of Kakaku.com through a consortium with EQT
  • Strategic partnership with Ion Pacific, establishment of a joint fund, and moving the investment portfolio off balance sheet
  • Joint development of next-generation investment infrastructure using AI
  • Development and launch during the fiscal year of Digital Garage Bank / DG Bank (provisional name) with the Resona Group
  • Launch of the Cloud Pay business
  • Launch of the new N750P / N750 payment terminals with Toshiba Tec
  • Score Atokara Card (deferred-payment card) scheduled to launch in June 2026
Key KPIsA metric the company considers important as a management benchmark.
  • Payment transaction volume¥9.1 trillion
    Year on year against the same period last year+21.1%
  • Investment business revenue19 Hundreds of millions of yen
  • Operating investment securities (balance at fiscal year-end)535 Hundreds of millions of yen
  • LTI new business revenue growth rate71 %
  • LTI profit before tax growth rate81 %
  • Growth rate in payment transaction volume from new businesses40 %
    Year on year against the same period last year+40%
  • Number of companies adopting strategic businesses such as App Pay and MusubellMusubell: more than 170 companies
Segment results
  • PS
    Revenue¥25,193 million (YoY +11.3%)
    Profit¥9,074 million (YoY +3.6%)
  • PS Payments
    Revenue¥19,523 million (YoY +10.7%)
    Profit¥6,767 million (YoY -3.7%)
  • PS Marketing
    Revenue¥5,670 million (YoY +14.0%)
    Profit¥2,307 million (YoY +27.5%)
  • LTI
    Revenue¥12,651 million (YoY -6.8%)
    Profit¥1,752 million (YoY +80.8%)
  • GII
    Profit¥-1,218 million
Medium-term management plan targets
  • TargetProfit before tax growth rate: five-year CAGR of at least 20%
    Target fiscal yearFiscal year ending March 2028
  • TargetPayment transaction volume of at least ¥15 trillion
    Target fiscal yearFiscal year ending March 2028
  • TargetCumulative investment business revenue over five years of at least ¥30 billion
    Target fiscal yearFiscal year ending March 2028
  • TargetShareholder returns (ordinary dividends): total over five years of at least ¥10 billion
    Target fiscal yearFiscal year ending March 2028
Number of stores and locations
Number at period-end1.33 million payment locations
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Ordinary income¥2,966 million (profit before tax)
Results for the three months of the current quarterPayment transaction volume ¥2.8 trillion (FY26.3 4Q) (YoY +42.9%) / PS segment revenue ¥6,887 million (FY26.3 4Q) (YoY +9.3%) / PS segment profit ¥2,350 million (FY26.3 4Q) (YoY +0.6%)
Self-assessment against the planBehind plan / fell short of the ¥10 trillion target for the previous fiscal year / investment business revenue and shareholder returns are expected to be achieved ahead of schedule
Segment resultsSegment PS / Revenue ¥25,193 million (YoY +11.3%) / Profit ¥9,074 million (YoY +3.6%), Segment PS Payments / Revenue ¥19,523 million (YoY +10.7%) / Profit ¥6,767 million (YoY -3.7%), Segment PS Marketing / Revenue ¥5,670 million (YoY +14.0%) / Profit ¥2,307 million (YoY +27.5%), Segment LTI / Revenue ¥12,651 million (YoY -6.8%) / Profit ¥1,752 million (YoY +80.8%), Segment GII / Profit ¥-1,218 million
Breakdown of Factors Affecting the ChangeFactors Year-on-year change in consolidated profit before tax / Amount ¥13,182 million, Factors Base effect from valuation losses on GII and crypto-related investments / Amount Not disclosed, Factors New investments in GII operating investment securities / Amount ¥172 million, Factors Decrease in carrying value due to sales / Amount ¥-615 million, Factors Changes in fair value, excluding foreign exchange effects / Amount ¥-3,252 million, Factors Other / Amount ¥-541 million, Factors Foreign Exchange Effects / Amount ¥2,801 million
Key KPIsIndicator name Payment transaction volume / Value ¥9.1 trillion / Year on year against the same period last year +21.1%, Indicator name Investment business revenue / Value 19 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Operating investment securities (balance at fiscal year-end) / Value 535 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name LTI new business revenue growth rate / Value 71 % / Year on year against the same period last year Not disclosed, Indicator name LTI profit before tax growth rate / Value 81 % / Year on year against the same period last year Not disclosed, Indicator name Growth rate in payment transaction volume from new businesses / Value 40 % / Year on year against the same period last year +40%, Indicator name Number of companies adopting strategic businesses such as App Pay and Musubell / Value Musubell: more than 170 companies / Year on year against the same period last year Not disclosed
Number of stores and locationsNumber at period-end 1.33 million payment locations / Number of store openings and closures during the period Not disclosed
Assumptions Underlying the Business OutlookExchange rate 31 March 2025: ¥149.5/USD, 31 March 2026: ¥159.9/USD
Medium-term management plan targetsTarget Profit before tax growth rate: five-year CAGR of at least 20% / Target fiscal year Fiscal year ending March 2028, Target Payment transaction volume of at least ¥15 trillion / Target fiscal year Fiscal year ending March 2028, Target Cumulative investment business revenue over five years of at least ¥30 billion / Target fiscal year Fiscal year ending March 2028, Target Shareholder returns (ordinary dividends): total over five years of at least ¥10 billion / Target fiscal year Fiscal year ending March 2028
New initiativesTender offer for shares of Kakaku.com through a consortium with EQT, Strategic partnership with Ion Pacific, establishment of a joint fund, and moving the investment portfolio off balance sheet, Joint development of next-generation investment infrastructure using AI, Development and launch during the fiscal year of Digital Garage Bank / DG Bank (provisional name) with the Resona Group, Launch of the Cloud Pay business, Launch of the new N750P / N750 payment terminals with Toshiba Tec, Score Atokara Card (deferred-payment card) scheduled to launch in June 2026
Items this document does not state (19)
Net SalesOperating profitNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

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.

The increase in consolidated profit before tax was mainly due to the base effect from investment valuation losses recorded in the previous fiscal year. The decline in profit in the Payments business was attributable to cancellations by some merchants, the concentration of technology resources on large projects, higher fixed costs, and competition over take rates.

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.
Earnings Presentation Materials for the Fiscal Year Ending March 2026 | Digital Garage,Inc. (4819) timely disclosure | Komori