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Financial results presentation6185SMN CorporationInformation and Communications, Services and Others

Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027

In the first quarter, consolidated revenue increased 8.8% year on year, driven by growth in digital marketing support. However, operating income and net income were negative due to lower revenue from the Ad Platform and investments in human capital. The Company also outlined a policy of expanding its business scope from ad delivery to broader marketing support, centered on AI, and introduced new services.

Worth reading
59In 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
8.8
% (year-on-year change in consolidated revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,971 million+8.8%
Operating profit¥-44 million
Ordinary income¥-51 million
Net income¥-99 million net income attributable to owners of the parent
Results for the three months of the current quarterRevenue: ¥2,971 million; operating loss: ¥44 million; ordinary loss: ¥51 million; net loss attributable to owners of the parent: ¥99 million
Full-year earnings forecast
Net Sales
¥13,500 million
Operating profit
¥700 million
Ordinary income
¥650 million
Profit attributable to owners of the parent
¥500 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。
Net Sales22.0%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing steadily toward achieving the full-year consolidated earnings forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated revenue
Decline in Ad Platform revenue-193
Increase in digital marketing support revenue371
Other64
Consolidated operating profit
Decline in Ad Platform profit-127
Increase in digital marketing support profit70
Human Capital Investment-92
Other34
New initiatives
  • Launch of the retail solution “UREMIRU”
  • Measurement of visits to physical stores originating from online advertising in collaboration with unerry
  • Launch of the “SENZAI Creative Solution”
  • Establishment of the SMN AI Promotion Committee
  • Policy to build an integrated analysis platform that uses AI agents to automate marketing PDCA cycles
  • Consideration of new business creation, M&A, and business and capital alliances
Key KPIsA metric the company considers important as a management benchmark.
  • Number of NURO Hikari support applications acquired113 % year on year
    Year on year against the same period last year+13.0%
  • Web ad clicks127 10,000 clicks
  • Video views2,100 More than 10,000 views
  • Advertising spend-to-sales effectiveness at physical stores133 ％
  • Advertising spend-to-sales effectiveness in online retail261 ％
  • Monthly request processing volume1.3 More than 1 trillion requests
Segment results
Ad platform
Net Sales
¥1,391 million
Year on year against the same period last year-12.2%
Digital marketing support
Net Sales
¥1,374 million
Year on year against the same period last year+37.0%
Other
Net Sales
¥205 million
Year on year against the same period last year+45.3%
Medium-term management plan targets
Fiscal year ending March 2031
Net Sales200
Revenue unitHundreds of millions of yen
Final year of the Medium-Term Management Plan 2026–2028
Net Sales160 Revenue and operating income: ¥100 million; ROE: %
Operating profit12 Revenue and operating income: ¥100 million; ROE: %
ROE15 Revenue and operating income: ¥100 million; ROE: %
Financial targets
ROE
Target value15 % or higher
Target fiscal yearFiscal year ending March 2029
Number of employees
Number of employees in technology and development24 People as of the end of March 2026, SMN株式会社 on a non-consolidated basis
Payout ratio
Target range of 20–30% (the Company will consider initiating dividends once net income attributable to owners of the parent reaches ¥550 million)
Acquisition of treasury shares
The Company will consider opportunistic share repurchases as appropriate, depending on market conditions and its capital position. The amount, number of shares and period of the repurchase authorization are Not disclosed
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥2,971 million (YoY +8.8%)
Operating profit¥-44 million
Ordinary income¥-51 million
Net income¥-99 million (net income attributable to owners of the parent)
Results for the three months of the current quarterRevenue: ¥2,971 million; operating loss: ¥44 million; ordinary loss: ¥51 million; net loss attributable to owners of the parent: ¥99 million
Full-year earnings forecastNet Sales ¥13,500 million / Operating profit ¥700 million / Ordinary income ¥650 million / Profit attributable to owners of the parent ¥500 million
Progress against full-year forecastNet Sales 22.0% / Operating profit Not disclosed / Ordinary income Not disclosed / Profit attributable to owners of the parent Not disclosed
Self-assessment against the planProgressing steadily toward achieving the full-year consolidated earnings forecast
Segment resultsAd platform Net Sales ¥1,391 million / yoy_pct -12.2 / Digital marketing support Net Sales ¥1,374 million / yoy_pct 37 / Other Net Sales ¥205 million / yoy_pct 45.3
Breakdown of Factors Affecting the ChangeConsolidated revenue Decline in Ad Platform revenue -193 / Increase in digital marketing support revenue 371 / Other 64 / Consolidated operating profit Decline in Ad Platform profit -127 / Increase in digital marketing support profit 70 / Human Capital Investment -92 / Other 34
Key KPIsIndicator name Number of NURO Hikari support applications acquired / Value 113 % year on year / Year on year against the same period last year 13 % year on year, Indicator name Web ad clicks / Value 127 10,000 clicks / Year on year against the same period last year Not disclosed, Indicator name Video views / Value 2,100 More than 10,000 views / Year on year against the same period last year Not disclosed, Indicator name Advertising spend-to-sales effectiveness at physical stores / Value 133 ％ / Year on year against the same period last year Not disclosed, Indicator name Advertising spend-to-sales effectiveness in online retail / Value 261 ％ / Year on year against the same period last year Not disclosed, Indicator name Monthly request processing volume / Value 1.3 More than 1 trillion requests / Year on year against the same period last year Not disclosed
Number of employeesNumber of employees in technology and development 24 People (as of the end of March 2026, SMN株式会社 on a non-consolidated basis) / Change during the period Not disclosed / Hiring plan Not disclosed
Medium-term management plan targetsFiscal year ending March 2031 Net Sales 200 / Revenue unit Hundreds of millions of yen / Final year of the Medium-Term Management Plan 2026–2028 Net Sales 160 Revenue and operating income: ¥100 million; ROE: % / Operating profit 12 Revenue and operating income: ¥100 million; ROE: % / ROE 15 Revenue and operating income: ¥100 million; ROE: %
Financial targetsROE Target value 15 % or higher / Target fiscal year Fiscal year ending March 2029 / Equity ratio Not disclosed
Payout ratioTarget range of 20–30% (the Company will consider initiating dividends once net income attributable to owners of the parent reaches ¥550 million)
Acquisition of treasury sharesThe Company will consider opportunistic share repurchases as appropriate, depending on market conditions and its capital position. The amount, number of shares and period of the repurchase authorization are Not disclosed
New initiativesLaunch of the retail solution “UREMIRU”, Measurement of visits to physical stores originating from online advertising in collaboration with unerry, Launch of the “SENZAI Creative Solution”, Establishment of the SMN AI Promotion Committee, Policy to build an integrated analysis platform that uses AI agents to automate marketing PDCA cycles, Consideration of new business creation, M&A, and business and capital alliances
Items this document does not state (12)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAnnual DividendCapital 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.

Revenue was driven by strong performance in in-house support for Sony Network Communications in the digital marketing support business and in “YOMIURI X-SOLUTIONS,” developed jointly with The Yomiuri Shimbun Tokyo Headquarters. On the earnings side, the decline in revenue from the Ad Platform, together with investments in human capital under the medium-term management plan, was cited as a factor behind the decline in profit.

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Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | SMN Corporation (6185) timely disclosure | Komori