Expansion from advertising and promotion into the entertainment market

「クリエイターマネジメント事務所「Birdman Enterprise」（2026年7月設立）において、TikTok LIVEで活動するライバーの獲得・育成・マネジメントを行います。」

「Viewing Japan's TikTok ecosystem, which has now evolved into a massive market approaching ¥100 billion, as a growth market, we are building an original education and activity-support system and pursuing initiatives to create the "strongest in-house channel" connecting fans with brands (livestreamers).」

「In particular, building a new business model centered on live streaming using online platforms is one of the important initiatives in our future business development.」

「In the EX Business, because a substantial segment loss was recorded in the previous consolidated fiscal year, we conducted a comprehensive review and adopted operations based on investment decisions while systematically controlling risks. In addition, the artists under contract with our group disbanded shortly after their debut in July 2024, and an artist proprietary IP that we had been developing as a project for some time was not debuted and disbanded. As a result, revenue declined substantially.」

「In the EX Business, because a substantial segment loss was recorded in the previous consolidated fiscal year, we conducted a comprehensive review and adopted operations based on investment decisions while systematically controlling risks. In addition, the artists under contract with our group disbanded shortly after their debut in July 2024, and an artist proprietary IP that we had been developing as a project for some time was not debuted and disbanded. As a result, revenue declined substantially.」

「(Note) This ended on 19 March 2024. “Celest1a,” our proprietary IP whose path to debut was followed on the program, has been developing its activities steadily, beginning with the announcement of its members on 14 February 2024 and including events with fans and appearances at major music events.」

「In addition to holding live performances, we began broadcasting “K-POP HOUSE,” a program packed with Korean entertainment information produced with the cooperation of our group, on 12 October 2023. Due to its favorable reception, the broadcast period was extended by 2 additional cours beyond the original plan of 2 cours, or 6 months. “Celest1a,” our proprietary IP whose path to debut was followed on the program, has been developing its activities steadily, beginning with the announcement of its members on 14 February 2024 and including events with fans and appearances at major music events. As part of the ideal synergies between the MX Business and EX Business, “Celest1a” has been selected to appear in product promotions for multiple major manufacturers commissioned by the MX Business, and a business expansion unique to our group is taking shape.」

「In the EX Business, to deliver 7ORDER’s performances to fans, we held “7ORDER LIVE [ONE,]- DUAL Endroll,” beginning with the performance held at Fukuoka Sunpalace Hotel & Hall on 8 December 2023 and ending with the performance held at Tokyo International Forum Hall on 1 January 2024. We also held “K-Pop Masterz×KROSSvol.3,” bringing together artists originating in Japan and rising to global prominence from Asia, centered on Korea, at Vantelin Dome Nagoya on 2 January 2024. In addition to holding live performances, we began broadcasting “K-POP HOUSE,” a program packed with Korean entertainment information produced with the cooperation of our company, on 12 October 2023. As part of the synergies between the MX Business and EX Business, 7ORDER, which has a growth partnership agreement with our company, held an online free live performance on 21 November 2023 in conjunction with the new project [ONE,] with support from KDDI株式会社, and distributed video content.」

「In the EX Business, while focusing on strengthening the artists’ individual activities, we made an advance sale of the “7ORDER LIVE TOUR 2023 DUAL” photo book to fan club members in September 2023 and worked on issuing a collaboration card with a credit card company and 7ORDER, among other initiatives. To deliver 7ORDER’s performances to fans, we decided to hold “7ORDER LIVE [ONE,]- DUAL Endroll,” beginning with the performance scheduled for 8 December 2023 at Fukuoka Sunpalace Hotel & Hall and ending with the performance scheduled for 1 January 2024 at Tokyo International Forum Hall.」

「Entertainment Next, a wholly owned subsidiary of the company that forms part of the EX Business, held for the first time in Japan the large-scale festival “KROSS vol.1-kpop masterz-,” bringing together artists originating in Japan and rising to global prominence from Asia, centered on Korea, at Vantelin Dome Nagoya on 2 January 2023. It also held “KROSS vol.2” at Ariake Arena on 25 and 26 February 2023, and “MBC IDOL RADIO LIVE in JAPAN” at the Exhibition Hall of Makuhari Messe International Convention Complex on 1 and 2 April 2023.」

「Entertainment Next, a wholly owned subsidiary of the company that forms part of the EX Business, held for the first time in Japan the large-scale festival “KROSS vol.1-kpop masterz-,” bringing together artists originating in Japan and rising to global prominence from Asia, centered on Korea, at Vantelin Dome Nagoya on 2 January 2023. It also held “KROSS vol.2” at Ariake Arena on 25 and 26 February 2023, and “MBC IDOL RADIO LIVE in JAPAN” at the Exhibition Hall of Makuhari Messe International Convention Complex on 1 and 2 April 2023. In addition, after acquiring the Japanese performance rights for “KPOP LUX,” a sister festival of “K.FLEX,” one of Europe’s largest K-POP concerts, we plan to co-host it in Japan over the next 4 years. We also plan to hold the Japanese edition of Korea’s signature summer music festival, “WATERBOMB JAPAN 2023,” in Osaka on 15 and 16 July 2023, Nagoya on 22 and 23 July, and Tokyo on 29 and 30 July, and the entire group is preparing for the events.」

「In the EX Business, an additional performance of 7ORDER’s autumn tour “7ORDER LIVE FACTORY〜脱色と着色〜,” which began with the Fukuoka performance held on 14 September 2022 and visited 10 cities nationwide, was held at Tokyo Garden Theater on 3 November 2022. In addition, preparations are under way for a hall and arena tour comprising 11 performances in 7 cities nationwide, beginning with the performance scheduled for 9 April 2023 at Sendai Sunplaza Hall in Miyagi and ending with the performance scheduled for 12 May 2023 at Osaka-jō Hall in Osaka. Entertainment Next, a wholly owned subsidiary of the company that forms part of the EX Business, held Japan’s first “MBC IDOL RADIO LIVE in TOKYO” at Tokyo Garden Theater on 20 October 2022. It also held for the first time in Japan the large-scale festival “KROSS vol.1-kpop masterz-,” bringing together artists originating in Japan and rising to global prominence from Asia, centered on Korea, at Vantelin Dome Nagoya on 2 January 2023.」

「The autumn tour “7ORDER LIVE FACTORY〜脱色と着色〜,” which began with the Fukuoka performance held on 14 September 2022 and visited 10 cities nationwide, held an additional performance at Tokyo Garden Theater on 3 November 2022, a venue with a maximum capacity of approximately 8,000.」

「The 7ORDER national tour “Date with.......,” which ran for approximately 3 months and comprised 33 performances at 13 venues, beginning with the performance held at TACHIKAWA STAGE GARDEN on 27 November 2021, drew more than 85,000 attendees, the largest audience in 7ORDER’s tour history. In addition, the group held its third-anniversary event, “7ORDER 3rd Anniversary Appreciation Festival ‘燦参七拍子,’” at Makuhari Messe on 21 and 22 May 2022. Revenue from the EX Business was ¥1.289365 billion and segment profit was ¥219.149 million.」

「In the EX Business, we worked to hold live performances safely during the COVID-19 pandemic, sell merchandise that would satisfy fans, and acquire fan club members through various media. As a result, the 7ORDER national tour “Date with.......,” which ran for approximately 3 months and comprised 33 performances at 13 venues, beginning with the performance held at TACHIKAWA STAGE GARDEN on 27 November 2021, concluded with attendance of more than 85,000, the largest in 7ORDER’s tour history. Revenue was ¥961.748 million and segment profit was ¥154.329 million.」

「Using our existing expertise in branding, advertising and promotion, and digital technology, we will create a platform where next-generation artists and creators who live freely across genres, without being bound by conventional formats, can build new forms of communication and relationships with fans and become stars. As announced in the “Notice Concerning the Launch of a New Business and Revision of Earnings Forecasts” dated 14 September 2021, the business began in September 2021 and will generate revenue from live performances, merchandise sales and fan club membership fees, among other sources. Revenue was ¥297.616 million and segment profit was ¥54.534 million.」

「During the cumulative first quarter, we launched the Entertainment Transformation Business, hereinafter referred to as the “EX Business.” The business began in September 2021 and will generate revenue from live performances, merchandise sales and fan club membership fees, among other sources. Revenue was ¥7.426 million and segment profit was ¥1.246 million. At a meeting of the Board of Directors held on 14 September 2021, we resolved to enter into a growth partnership agreement with 7ORDER (Seven Order) concerning artist activities, and entered into the agreement on the same date.」

「Established a new entertainment transformation business to expand the business domain from advertising and promotion into the entertainment market.」