Entry into the Karaoke Business and Group Synergies

「In July 2026, we made Ottotree Entertainment, which operates karaoke facilities in Malaysia, a consolidated subsidiary, thereby expanding the karaoke business overseas.」

「In the karaoke equipment dealership business, 3 dealers were integrated between February and March 2026. In the karaoke facility operations business, シン・コーポレーション absorbed メロ・ワークス in April 2026. After expanding the new "イマカラ予約" feature of the "Karaoke BanBan Official App" to all stores in March 2026, the number of app members exceeded 3 million at シン・コーポレーション. In addition, Ottotree Entertainment, which operates karaoke facilities in Malaysia, became a consolidated subsidiary in July 2026, enabling the overseas expansion of the karaoke business.」

「In the karaoke business, same-store sales at "Karaoke BanBan," operated by 株式会社シン・コーポレーション (hereinafter, "シン・コーポレーション"), performed strongly as discount coupons and pricing initiatives proved effective. The Company also actively pursued M&A, beginning with the acquisition of 23 karaoke facilities from 株式会社アトム in March 2025, and acquired a total of 26 facilities. In addition, 音通 Group, which became a consolidated subsidiary in the second half of the previous consolidated fiscal year and operates a karaoke equipment sales and rental business, made a significant contribution. 音通 is a corporate group headed by 株式会社音通. As a result, sales increased significantly year on year. 音通 focused on expanding transactions with シン・コーポレーション, and vertical integration across the karaoke value chain is progressing smoothly.」

「At "Karaoke BanBan," customer traffic improved through pricing package initiatives and reciprocal customer referral initiatives with the amusement facilities "GiGO," among other measures, and sales performed strongly, increasing 7.4% year on year based on results before the company became a consolidated subsidiary. The Company also focused on generating group synergies by installing mini-locations operated by GENDA GiGO Entertainment at "Karaoke BanBan" and introducing into the food and beverage menu the popular liqueur "Kleiner Feigling," which レモネード・レモニカ and シトラム of the Group sell wholesale, along with lemonade.」

「In February 2024, the Company acquired the shares of 株式会社シン・コーポレーション (hereinafter, "シン・コーポレーション"), which operated 368 karaoke facilities nationwide as of the end of April 2024, and made it a consolidated subsidiary. As a result, "karaoke" was added to the Group's business operations.」