First-quarter revenue growth was concentrated in the HR business, while profit recovery remains limited

Consolidated first-quarter revenue was ¥339 million, up 7.8% year on year. Operating profit was ¥1 million, higher than in the same period of the previous year, but the operating margin was only approximately 0.3%, and ordinary loss was ¥9 million. Revenue progress toward the full-year forecast of ¥1,652 million was approximately 20.5%, while operating profit progress was approximately 2.0%, indicating that higher revenue has not translated directly into accumulated profit.

By segment, HR revenue showed the strongest growth at ¥74.6 million, up 429.1% year on year. Media PR revenue also increased 34.4% to ¥81.3 million, while Public-Private Co-Creation revenue fell 16.0% to ¥137.3 million and Global Innovation revenue fell 39.5% to ¥46.6 million. Segment results were a ¥1.5 million loss for HR, profit of ¥41.0 million for Public-Private Co-Creation, ¥45.4 million for Media PR, and ¥3.4 million for Global Innovation, clearly separating the directions of the growth and established businesses.

For FY2026, full-year revenue was ¥1,428.9 million and operating profit was ¥50.1 million. In the next period, FY2027-H1, it will be important to determine not only whether consolidated revenue increased, but also whether revenue of ¥698.2 million and operating profit of ¥44.4 million in the same period of the previous year were exceeded. In particular, we will examine whether HR revenue continues to grow, whether the revenue declines in Public-Private Co-Creation and Global Innovation have bottomed out, and how much detail is disclosed on the difference between segment profits and company-wide expenses.