Further Growth in Point Sales Revenue, PU, ARPPU, and Adjusted Gross Profit

「Monthly average points ARPPU (Average Revenue Per Paid User, or the average amount spent per paying user) was ¥8,052, up 12.2% year on year, and remained on a steady trend. Net gross profit, defined as total revenue earned by the Company less compensation paid to monetized streamers and fees paid to payment processors such as Apple Inc. and Google Inc., was ¥988,417 thousand, up 8.3% year on year. This reflected further changes in the revenue structure accompanying the decline in the proportion of app payments for point sales, as well as continued growth in Membership. Meanwhile, monthly average points PU (Paid User, or the number of paying users) was strongly affected by changes in the competitive environment in Japan's live-streaming services market, falling to 57 thousand, down 15.7% year on year. Accordingly, point sales revenue came in at ¥2,762 million, down 5.5% year on year.」

「Points PU and points sales revenue declined due to changes in the behavior of some casual users resulting from changes in the competitive environment. However, as usage by loyal users remained firm, points ARPPU increased both year on year and against plan, indicating continued establishment of a higher-revenue user base.」

「The Company will work to restore the relevant indicator from the fiscal year ending January 2027 onward by developing new services, improving existing services and implementing marketing initiatives in line with the policies described in “Part 2. Business Overview, 1. Management Policy, Business Environment and Issues to Be Addressed, (2) Management Strategies, etc.”」

「As a result, during the six-month period, monthly average points ARPPU (short for Average Revenue Per Paid User, or the average amount paid per paying user), one of the Company's key indicators, was ¥7,179, up 7.1% year on year, maintaining a steady trend. Adjusted gross profit, defined as total revenue generated by the Company less compensation paid to monetized creators and fees paid to payment processors such as Apple Inc. and Google Inc., was ¥912.795 million, up 2.1% year on year, supported by continued growth in “Membership.” Meanwhile, monthly average points PU (short for Paid User, or the number of paying users) was 67 thousand, down 7.6% year on year, and revenue from point sales consequently came to ¥2,923 million, down 1.1% year on year.」

「The Company will work to restore the relevant indicator from the fiscal year ending January 2026 onward by developing new services, improving existing services and implementing marketing initiatives in line with the policies described in “Part 2. Business Overview, 1. Management Policy, Business Environment and Issues to Be Addressed, (2) Management Strategies, etc.”」

「As a result, during the interim accounting period, monthly average points PU, one of our key metrics, was 73 thousand, down 3.4% year on year. Monthly average points ARPPU was ¥6,703, up 2.6% year on year and remained solid, while point sales revenue from TwitCasting was ¥2,954 million, down 0.7% year on year. Real gross profit, defined as total revenue earned by the Company less compensation paid to monetised streamers and fees paid to payment service providers such as Apple Inc. and Google Inc., was ¥894.431 million, up 4.3% year on year, due in part to continued growth in Membership.」

「The company was unable to reverse the decline, which continued from the previous fiscal year due to changes in the competitive environment in Japan’s live-streaming services market. During the current cumulative first-quarter period, average monthly point PU, or paid users, was 73 thousand, down 4.5% year on year, and average monthly point ARPPU, or average amount paid per paid user, was ¥6,509, down 0.6%, resulting in point sales revenue for “TwitCasting” of ¥1,426 million, down 4.8%. Adjusted gross profit, defined as total revenue earned by the company less payments to monetized streamers and fees paid to payment service providers such as Apple Inc. and Google Inc., was ¥423.868 million, down 0.9%, partly because membership revenue continued to grow steadily.」

「In line with the policies described in “2. Business Conditions, 1. Management Policy, Business Environment and Issues to Be Addressed,” the company will work to restore these indicators from the fiscal year ending January 2025 onward by developing new services, improving existing services and implementing marketing initiatives.」

「As a result, during the current cumulative third-quarter period, average monthly point ARPPU, one of the company’s key indicators, was ¥6,579, up 7.7% year on year, remaining firm. Adjusted gross profit, defined as total revenue earned by the company less payments to monetized streamers and fees paid to payment service providers such as Apple Inc. and Google Inc., was ¥1,283.304 million, up 2.8%, partly due to a further decrease in total payment processing fees resulting from changes in the mix of payment methods used for point purchases and continued growth in membership revenue. Meanwhile, average monthly point PU, or paid users, remained below the prior trend and was 75 thousand, down 11.7%, resulting in point sales revenue for “TwitCasting” of ¥4,458 million, down 4.9%.」

「As a result, during the current cumulative second-quarter period, average monthly point ARPPU, one of the company’s key indicators, was ¥6,531, up 9.6% year on year, remaining firm. Adjusted gross profit, defined as total revenue earned by the company less payments to monetized streamers and fees paid to payment service providers such as Apple Inc. and Google Inc., was ¥857.392 million, up 5.8%, partly due to a decrease in total payment processing fees resulting from changes in the mix of payment methods used for point purchases and continued growth in membership revenue. Meanwhile, average monthly point PU, or paid users, remained below the prior fiscal year and was 76 thousand, down 10.9%, resulting in point sales revenue for “TwitCasting” of ¥2,976 million, down 2.3%.」

「Adjusted gross profit, defined as total revenue earned by the company less payments to monetized streamers and fees paid to payment service providers such as Apple Inc. and Google Inc., was ¥427.815 million, up 10.0% year on year, partly because membership revenue grew. Meanwhile, reflecting the continuing decline in average monthly point PU, or paid users, PU was 76 thousand, down 12.3%, and point sales revenue for “TwitCasting” was ¥1,499 million, down 2.0%.」

「In line with the policies described in “2. Business Conditions, 1. Management Policy, Business Environment and Issues to Be Addressed,” the company will work to restore these indicators from the fiscal year ending January 2024 onward by developing new services, improving existing services and implementing marketing initiatives.」

「As a result, during the current cumulative third-quarter period, point sales revenue for the company’s key indicator “TwitCasting” was ¥4,687.647 million, down 0.1% year on year; average monthly point PU, or paid users, was 85 thousand, down 6.0%; average monthly point ARPPU, or average amount paid per paid user, was ¥6,108, up 6.5%; and adjusted gross profit, defined as total revenue earned by the company less payments to monetized streamers and fees paid to payment service providers such as Apple Inc. and Google Inc., was ¥1,248.555 million, up 1.7%.」

「As a result, during the current cumulative second-quarter period, point sales revenue for the company’s key indicator “TwitCasting” was ¥3,048.392 million, up 3.3% year on year; average monthly point PU, or paid users, was 85 thousand, down 4.0%; average monthly point ARPPU, or average amount paid per paid user, was ¥5,959, up 7.4%; and adjusted gross profit, defined as total revenue earned by the company less payments to monetized streamers and fees paid to payment service providers such as Apple Inc. and Google Inc., was ¥810.441 million, up 4.3%.」

「As a result, during the current cumulative first-quarter period, point sales revenue for the company’s key indicator “TwitCasting” was ¥1,530.604 million, up 6.9% year on year; average monthly point PU was 87 thousand, down 0.9%; average monthly point ARPPU was ¥5,864, up 8.1%; and adjusted gross profit was ¥388.893 million, up 2.2%.」

「Going forward, the company will seek further growth in each KPI through the measures described above under “(2) Business Strategies” and other initiatives.」