Multifaceted Monetization Based on Proprietary IP

「The strong performance of the game 『ホロドリ』 led the licensing and tie-up businesses to outperform their plans.」

「Revenue from IP commerce initiatives (Note 7) increased from 39.8% of total revenue in the fiscal year ended March 2021 to 62.7% in the fiscal year ending March 2026. Our business model is becoming increasingly characterized not merely as a streaming business, but as a multifaceted character-content business centered on VTubers.」

「While business scale continued to expand in live events, merchandising, licensing and tie-ups,」

「In licensing and tie-ups, we held a series of pop-up events in Japan, including in Shibuya, Ikebukuro, Tokyo, and Ariake, to capture foot traffic during the summer holiday period, while overseas we held a collaboration event with the Los Angeles Dodgers for the second consecutive year. These initiatives expanded general brand awareness and helped increase engagement within the fan community. Game-related revenue also continued to build its presence, exceeding ¥200 million per quarter based solely on contributions from small- and medium-sized titles. As a result, revenue in this area amounted to ¥3,244 million, up 25.7% year on year.」

「In licensing and tie-ups, the effects of the sales organization reforms undertaken since the beginning of the year began to materialize, and the transaction pipeline, including overseas clients, expanded steadily. As a result, revenue in this area amounted to ¥2,581 million, up 43.2% year on year.」

「The rights to the character IP of our affiliated VTubers belong to us, enabling us to pursue diverse commerce initiatives based on that IP, including merchandising and licensing businesses. As the influence of our VTuber IP has grown, the scale of our commerce initiatives has also expanded, and revenue per affiliated VTuber had grown to approximately ¥350 million annually as of the fiscal year ended March 2024 (Note 7). In addition, revenue from IP commerce initiatives (Note 8) accounted for 56.1% of total revenue in the fiscal year ended March 2024, up from 39.8% in the fiscal year ended March 2021, further strengthening the IP-based nature of our business model.」

「In merchandising, although the timing of shipments for made-to-order products has had a short-term impact due to a shift between reporting periods, advance payments, consisting mainly of outstanding product orders, stood at ¥5,708.560 million as of 31 December 2023, up 25.0% year on year, and product transaction volumes continued to trend firmly. In licensing and tie-ups, transactions also continued to expand against the backdrop of the growing influence of our IP.」

「During the second quarter, we expanded exposure for our IP across multiple channels beyond online live streaming by holding multiple live concerts in Japan and overseas and appearing in a wide range of media, including television.」

「In addition to live streaming, we are expanding awareness of our IP through diverse forms of exposure, including music distribution, television appearances, and collaborations with other brands,」

「The rights to the character IP of our affiliated VTubers belong to us, enabling us to pursue diverse commerce initiatives based on that IP, including merchandising and licensing businesses.」