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Summary of Q&ASecond quarter of the fiscal year ending September 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Results for the three months of the current quarter
Creator business EBITDA year-on-year+439.2%
North American business EBITDA-¥100 million
North American business revenue year-on-year+39.4%
Full-year earnings forecast
North American business EBITDA¥700 million
North American business EBITDA upside view¥800 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
EBITDA72%
Adjusted net income92.2%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The company assesses the North American business as continuing to track on target toward its full-year EBITDA target of ¥700 millionKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Questions Why was the full-year forecast not revised upward despite strong first-half progress? / Answer Because the company factored in approximately ¥150 million of lower gross profit in the CTV and video businesses in the third quarter, as well as uncertainty in the North American business
- Questions Is growth in the creator business sustainable? / Answer The company explained that the growth is structural and sustainable even excluding the impact of the transfer of corporate functions. The main drivers are the strengthening of the existing business platform and growth in UUUM Marketing
- Questions What are the rationale and financial impact of the acquisition of UDN SPORTS? / Answer The aim is to expand the value of top athletes through advertising sales and creator monetization, thereby increasing fee revenue
- Questions How likely is the North American business to achieve full-year EBITDA of ¥700 million? / Answer Although the second-quarter loss was larger than expected, revenue growth was in line with the plan, and the company assesses the ¥700 million full-year target as on target
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Lower gross profit from changes in transaction flows in the CTV and video businessesApproximately ¥150 million
- Second-quarter loss in the North American business-¥100 million
- Variance in the North American business from the initial assumptionsLoss widened from the initially assumed -¥50 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- AssumptionsLower gross profit from changes in transaction flows in the CTV and video businessesFiguresApproximately ¥150 million
- AssumptionsReturn to profitability in the North American business from the third quarter onward
New initiatives
- Bringing UDN SPORTS into the group
- Combining UDN SPORTS's athlete management business with FreakOut Group's advertising sales capabilities and UUUM's creator monetization solutions
Key KPIsA metric the company considers important as a management benchmark.
- Cumulative first-half EBITDA progress rate72%
- Adjusted net income progress rate92.2%
- Creator business EBITDAMore than 4 times the prior-year level, +439.2%Year on year against the same period last year+439.2%
- North American business revenueYear on year against the same period last year+39.4%
Segment results
Creator Business
EBITDA year-on-year+439.2%
North America Business
Year-on-year change in revenue+39.4%
EBITDA-¥100 million
Risk amount incorporated into the outlookThe amount representing the range of variation the company expects in its forecast.
Approximately ¥150 million
DetailsLower gross profit from changes in transaction flows in the CTV and video businesses
Market Size / Share
FiguresApproximately ¥21.5 billion
DetailsThe market value of top athletes represented by UDN SPORTS
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending September 2026 |
| Results for the three months of the current quarter | Creator business EBITDA year-on-year +439.2% / North American business EBITDA -¥100 million / North American business revenue year-on-year +39.4% |
| Full-year earnings forecast | North American business EBITDA ¥700 million / North American business EBITDA upside view ¥800 million |
| Progress against full-year forecast | EBITDA 72% / Adjusted net income 92.2% |
| Self-assessment against the plan | The company assesses the North American business as continuing to track on target toward its full-year EBITDA target of ¥700 million |
| Segment results | Creator Business EBITDA year-on-year +439.2% / North America Business Year-on-year change in revenue +39.4% / EBITDA -¥100 million |
| Breakdown of Factors Affecting the Change | Factors Lower gross profit from changes in transaction flows in the CTV and video businesses / Amount Approximately ¥150 million, Factors Second-quarter loss in the North American business / Amount -¥100 million, Factors Variance in the North American business from the initial assumptions / Amount Loss widened from the initially assumed -¥50 million |
| Key KPIs | Indicator Cumulative first-half EBITDA progress rate / Value 72% / Year on year against the same period last year Not disclosed, Indicator Adjusted net income progress rate / Value 92.2% / Year on year against the same period last year Not disclosed, Indicator Creator business EBITDA / Value More than 4 times the prior-year level, +439.2% / Year on year against the same period last year +439.2%, Indicator North American business revenue / Value Not disclosed / Year on year against the same period last year +39.4% |
| Assumptions Underlying the Business Outlook | Assumptions Lower gross profit from changes in transaction flows in the CTV and video businesses / Figures Approximately ¥150 million, Assumptions Return to profitability in the North American business from the third quarter onward / Figures Not disclosed |
| Risk amount incorporated into the outlook | Amount Approximately ¥150 million / Details Lower gross profit from changes in transaction flows in the CTV and video businesses |
| Market Size / Share | Figures Approximately ¥21.5 billion / Details The market value of top athletes represented by UDN SPORTS |
| Key points of the Q&A | Questions Why was the full-year forecast not revised upward despite strong first-half progress? / Answer Because the company factored in approximately ¥150 million of lower gross profit in the CTV and video businesses in the third quarter, as well as uncertainty in the North American business, Questions Is growth in the creator business sustainable? / Answer The company explained that the growth is structural and sustainable even excluding the impact of the transfer of corporate functions. The main drivers are the strengthening of the existing business platform and growth in UUUM Marketing, Questions What are the rationale and financial impact of the acquisition of UDN SPORTS? / Answer The aim is to expand the value of top athletes through advertising sales and creator monetization, thereby increasing fee revenue, Questions How likely is the North American business to achieve full-year EBITDA of ¥700 million? / Answer Although the second-quarter loss was larger than expected, revenue growth was in line with the plan, and the company assesses the ¥700 million full-year target as on target |
| New initiatives | Bringing UDN SPORTS into the group, Combining UDN SPORTS's athlete management business with FreakOut Group's advertising sales capabilities and UUUM's creator monetization solutions |
Items this document does not state (17)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlog
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 company cited the expected full-scale impact of lower gross profit from changes in transaction flows in the CTV and video businesses beginning in the third quarter, which is expected to reduce profit by approximately ¥150 million, and the fact that the outlook for the North American business, while improving, cannot yet be considered certain.
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