Worth reading
56In 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
238
¥ million (year-on-year decrease in operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Results briefing materialsSecond quarter (interim period) of the fiscal year ending March 20278 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,087 million+7.1%
Operating profit¥-57 million
Ordinary income¥-72 million
Net income¥-112 million interim net income attributable to owners of the parent
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 Sales45.0%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated revenue
Decline in Ad Platform revenue-461
Increase in digital marketing support revenue782
Higher revenue from other businesses86
Consolidated operating profit
Decline in Ad Platform profit-285
Increase in digital marketing support profit143
Personnel expenses, etc.-151
Other54
New initiatives
- Launch of the new B2B marketing solution “Biznt”
- Rollout of the brand awareness advertising and retail solution “UREMIRU”
- Company-wide, cross-functional promotion of AI adoption by the SMN AI Promotion Committee
- Improving operational efficiency in creative and other functions through generative AI
Key KPIsA metric the company considers important as a management benchmark.
- Number of brand awareness advertising campaigns+15%Year on year against the same period last year+15%
- Brand awareness advertising revenue+13%Year on year against the same period last year+13%
- Monthly request processing volumeMore than 13 trillion
- TV viewing logsMore than 13 million devices
- Number of contracts acquired through NURO Hikari support initiatives128%Year on year against the same period last year+28%
Segment results
Ad platform
Net Sales
¥2,708 million
Year on year against the same period last year-14.5%
Digital marketing support
Net Sales
¥2,906 million
Year on year against the same period last year+36.8%
Other
Net Sales
¥472 million
Year on year against the same period last year+22.2%
Medium-term management plan targets
Fiscal year ending March 2029
Net Sales¥16 billion
Operating profit¥1.2bn
ROE15%
Fiscal year ending March 2031
Net Sales¥20 billion
Financial targets
ROE15.0% or higher for the fiscal year ending March 2029
Payout ratio
Guideline of 20-30% (the company will consider initiating dividend payments when net income attributable to owners of the parent reaches ¥550 million)Acquisition of treasury shares
Considering flexible repurchases depending on market conditions and capital position| Item | Details |
|---|---|
| Document type | Results briefing materials |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥6,087 million (YoY +7.1%) |
| Operating profit | ¥-57 million |
| Ordinary income | ¥-72 million |
| Net income | ¥-112 million (interim net income attributable to owners of the parent) |
| 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 | Net Sales 45.0% / Operating profit Not disclosed / Ordinary income Not disclosed / Profit attributable to owners of the parent Not disclosed |
| Segment results | Ad platform Net Sales ¥2,708 million / Year on year against the same period last year -14.5% / Digital marketing support Net Sales ¥2,906 million / Year on year against the same period last year +36.8% / Other Net Sales ¥472 million / Year on year against the same period last year +22.2% |
| Breakdown of Factors Affecting the Change | Consolidated revenue Decline in Ad Platform revenue -461 / Increase in digital marketing support revenue 782 / Higher revenue from other businesses 86 / Consolidated operating profit Decline in Ad Platform profit -285 / Increase in digital marketing support profit 143 / Personnel expenses, etc. -151 / Other 54 |
| Key KPIs | Indicator name Number of brand awareness advertising campaigns / Value +15% / Year on year against the same period last year +15%, Indicator name Brand awareness advertising revenue / Value +13% / Year on year against the same period last year +13%, Indicator name Monthly request processing volume / Value More than 13 trillion / Year on year against the same period last year Not disclosed, Indicator name TV viewing logs / Value More than 13 million devices / Year on year against the same period last year Not disclosed, Indicator name Number of contracts acquired through NURO Hikari support initiatives / Value 128% / Year on year against the same period last year +28% |
| Medium-term management plan targets | Fiscal year ending March 2029 Net Sales ¥16 billion / Operating profit ¥1.2bn / ROE 15% / Fiscal year ending March 2031 Net Sales ¥20 billion |
| Financial targets | ROE 15.0% or higher for the fiscal year ending March 2029 |
| Payout ratio | Guideline of 20-30% (the company will consider initiating dividend payments when net income attributable to owners of the parent reaches ¥550 million) |
| Acquisition of treasury shares | Considering flexible repurchases depending on market conditions and capital position |
| New initiatives | Launch of the new B2B marketing solution “Biznt”, Rollout of the brand awareness advertising and retail solution “UREMIRU”, Company-wide, cross-functional promotion of AI adoption by the SMN AI Promotion Committee, Improving operational efficiency in creative and other functions through generative AI |
Items this document does not state (15)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions 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 increased on strong support for bringing digital marketing in-house, while lower revenue from a decline in large ad platform projects and higher personnel and other costs resulting from human capital investment under the medium-term management plan weighed on earnings. The company left its full-year forecast unchanged, factoring in higher ad platform revenue in the second half, continued growth in digital marketing support and cost improvements.
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