Second-Quarter Financial Results Presentation for the Fiscal Year Ending March 2027 | NexTone Inc. (7094) timely disclosure

Worth reading

87Important

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Direction

Improvement

Direction inferred from the company’s description.

Scale

80.9

Year-on-year increase in operating profit (%)

Wording

Conditional

How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202712 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥113.5 100 million+10.6%

Operating profit¥10.6 100 million+80.9%

Ordinary income¥10.9 100 million+83.3%

Net income¥6.2 100 million+66.7%

Operating profit margin9.4 %

Selling, general and administrative expenses¥20.4 100 million

Results for the three months of the current quarter

Net Sales

¥55.1 100 million

Operating profit

¥5.1 100 million

Net Sales¥4.2 100 million

Operating profit¥1.6 100 million

DD business

Net Sales¥27.1 100 million

Operating profit¥2.7 100 million

Music Distribution

Net Sales¥19.5 100 million

Operating profit¥4.1 100 million

Business Support Business

Net Sales¥6.2 100 million

Operating profit¥0.7 100 million

Full-year earnings forecast

Net Sales

¥220 100 million

Selling, general and administrative expenses

¥42 100 million

Operating profit

¥16 100 million

Ordinary income

¥16 100 million

Net income

¥10 100 million

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Both revenue and operating profit exceeded the plan.

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Second-quarter operating profit for the fiscal year ending March 2026¥5.8 100 million
Revenue-growth effect
Increase in personnel expenses¥-0.07 100 million
Increase in systems and other costs¥-0.4 100 million
Second-quarter operating profit for the fiscal year ending March 2027¥10.6 100 million

Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.

Assumption for JASRAC copyright royalty collections6% growth year on year

New initiatives

FLAGGLE and Eggs Pass, operated by RecoChoku, are scheduled to discontinue service offerings during the current fiscal year.
Focus on the Company's DD services.
Support for the launch of digital distribution for all 6 titles, including 7 previously unreleased songs by Miki Matsubara.
Continue pursuing overseas markets
Strengthen YouTube-related businesses
Achieved entry into the management of karaoke performances and now manages all categories.

Key KPIsA metric the company considers important as a management benchmark.

Transaction Value¥232.8 100 million+21.2%
Number of managed songs88.8 10,000 songs+17.2%
Number of master recordings handled173.5 10,000 master recordings+8.6%
Copyright management services transaction volume¥84.8 100 million+15.4%
Domestic music copyright management market share10.7 %

Segment results

Copyright Management
Net Sales8.5
Operating profit3.3
Year-on-year sales11.8
Year-on-year operating profit2.8
DD business
Net Sales55.3
Operating profit5.2
Year-on-year sales9.7
Year-on-year operating profit10.2
Music Distribution
Net Sales38.9
Operating profit7.9
Year-on-year sales1.5
Year-on-year operating profit-0.1
Business Support Business
Net Sales14.6
Operating profit2.1
Year-on-year sales36.6
Year-on-year operating profitReturn to profitability

Medium-term management plan targets

Fiscal year ending March 2027

Net Sales¥220 100 million

Operating profit¥16 100 million

Fiscal year ending March 2028

Net Sales¥240 100 million

Operating profit¥19 100 million

Fiscal year ending March 2029

Net Sales¥260 100 million

Operating profit¥23 100 million

OtherAim to list on the Prime Market in the fiscal year ending March 2028.

Financial targets

Equity ratio

Second-quarter results for the fiscal year ending March 202735.2 %

Net assets under Prime Market listing criteria¥5 billion or more

Market Size / Share

Domestic music copyright management market share10.7 %

Number of employees

Non-consolidated136 people

Consolidated315 people

Annual Dividend

Fiscal year ending March 2027

Interim¥11 /share

Full-year forecast¥11 /share

Full-year forecast¥22 /share

Acquisition of treasury shares

Considered flexibly

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥113.5 100 million (YoY +10.6%)
Operating profit	¥10.6 100 million (YoY +80.9%)
Ordinary income	¥10.9 100 million (YoY +83.3%)
Net income	¥6.2 100 million (YoY +66.7%)
Operating profit margin	9.4 %
Selling, general and administrative expenses	¥20.4 100 million
Results for the three months of the current quarter	Net Sales ¥55.1 100 million / Operating profit ¥5.1 100 million / Copyright Management Net Sales ¥4.2 100 million / Operating profit ¥1.6 100 million / DD business Net Sales ¥27.1 100 million / Operating profit ¥2.7 100 million / Music Distribution Net Sales ¥19.5 100 million / Operating profit ¥4.1 100 million / Business Support Business Net Sales ¥6.2 100 million / Operating profit ¥0.7 100 million
Full-year earnings forecast	Net Sales ¥220 100 million / Selling, general and administrative expenses ¥42 100 million / Operating profit ¥16 100 million / Ordinary income ¥16 100 million / Net income ¥10 100 million
Self-assessment against the plan	Both revenue and operating profit exceeded the plan.
Segment results	Segment Copyright Management / Net Sales ¥8.5 100 million / Operating profit ¥3.3 100 million / Year-on-year sales ¥11.8 100 million / Year-on-year operating profit ¥2.8 100 million, Segment DD business / Net Sales ¥55.3 100 million / Operating profit ¥5.2 100 million / Year-on-year sales ¥9.7 100 million / Year-on-year operating profit ¥10.2 100 million, Segment Music Distribution / Net Sales ¥38.9 100 million / Operating profit ¥7.9 100 million / Year-on-year sales ¥1.5 100 million / Year-on-year operating profit ¥-0.1 100 million, Segment Business Support Business / Net Sales ¥14.6 100 million / Operating profit ¥2.1 100 million / Year-on-year sales ¥36.6 100 million / Year-on-year operating profit Return to profitability
Breakdown of Factors Affecting the Change	Second-quarter operating profit for the fiscal year ending March 2026 ¥5.8 100 million, Revenue-growth effect 非開示, Increase in personnel expenses ¥-0.07 100 million, Increase in systems and other costs ¥-0.4 100 million, Second-quarter operating profit for the fiscal year ending March 2027 ¥10.6 100 million
Key KPIs	Transaction Value ¥232.8 100 million (YoY +21.2%), Number of managed songs 88.8 10,000 songs (YoY +17.2%), Number of master recordings handled 173.5 10,000 master recordings (YoY +8.6%), Copyright management services transaction volume ¥84.8 100 million (YoY +15.4%), Domestic music copyright management market share 10.7 %
Number of employees	Non-consolidated 136 people / Consolidated 315 people / Change during the period Not disclosed
Assumptions Underlying the Business Outlook	Assumption for JASRAC copyright royalty collections 6% growth year on year
Medium-term management plan targets	Fiscal year ending March 2027 Net Sales ¥220 100 million / Operating profit ¥16 100 million / Fiscal year ending March 2028 Net Sales ¥240 100 million / Operating profit ¥19 100 million / Fiscal year ending March 2029 Net Sales ¥260 100 million / Operating profit ¥23 100 million / Other Aim to list on the Prime Market in the fiscal year ending March 2028.
Financial targets	Equity ratio Second-quarter results for the fiscal year ending March 2027 35.2 % / Net assets under Prime Market listing criteria ¥5 billion or more
Annual Dividend	Fiscal year ending March 2027 Interim ¥11 /share / Full-year forecast ¥11 /share / Full-year forecast ¥22 /share
Acquisition of treasury shares	Considered flexibly
Market Size / Share	Domestic music copyright management market share 10.7 %
New initiatives	FLAGGLE and Eggs Pass, operated by RecoChoku, are scheduled to discontinue service offerings during the current fiscal year., Focus on the Company's DD services., Support for the launch of digital distribution for all 6 titles, including 7 previously unreleased songs by Miki Matsubara., Continue pursuing overseas markets, Strengthen YouTube-related businesses, Achieved entry into the management of karaoke performances and now manages all categories.

Items this document does not state (9)

Gross Profit MarginProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookPayout ratioCapital expendituresOrders received and order backlogKey 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.

In addition to higher revenue resulting from steady performance across each business, profitability improved through cost controls and the streamlining and transfer of certain businesses of consolidated subsidiaries at the end of the previous fiscal year. For operating profit, the effect of higher revenue absorbed increases in personnel expenses, system costs and other costs.

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