Non-print revenue is the next growth engine, with FY2027 serving as a test of continued expansion

For the fiscal year ended June 2026, revenue was ¥3,987 million, up 8.4% year on year, and operating profit was ¥593 million, up 28.4%. The company said that non-print revenue, including PPP (public-private partnership) projects, local-government proposal projects and digital services, drove overall performance. However, the earnings summary reports a single segment, the Town News business, and does not disclose revenue, gross profit or operating profit separately for PPP, proposals and digital services. The increase in total revenue alone does not show which businesses grew or at what margins.

The change in the business mix can be seen more specifically in revenue by contract during FY2026-H1. Town News placement revenue was ¥1,247.676 million, while “Other” revenue, including website production and other printed materials, was ¥597.171 million, approximately 32.4% of total revenue of ¥1,844.848 million. In the same period a year earlier, placement revenue was ¥1,271.061 million, “Other” revenue was ¥403.483 million and total revenue was ¥1,674.545 million. “Other” revenue increased approximately 48.0% in value terms, while its mix rose 8.3 percentage points from approximately 24.1%. Non-placement areas offset the overall revenue increase as placement revenue declined approximately 1.8%.

In the non-print business, designated management operations are conducted at 3 facilities: Hadano City Cultural Hall, Chigasaki Park Experience Learning Center and Odawara Civic Hall. The company said that stable facility operations and successful large-scale events were achieved in FY2026. However, revenue, operating profit, utilization, event counts and project unit prices by facility are not disclosed. The company has also stated a target of raising the non-print revenue mix from 22.5% in FY44 to 30% in FY47, but the 32.4% in FY2026-H1 is a first-half result and does not mean that the full-year target has already been achieved. The full-year mix may vary depending on whether projects are concentrated at the end of the fiscal year.

In the next earnings release, we will first check the year-on-year change and mix of “Other” revenue, using the full-year target of at least 30% as a benchmark. It will also be important to see whether continuing operations at the 3 PPP facilities, new local-government proposal wins, and Web and digital advertising revenue can be shown separately. Even if non-print revenue is growing, it will be difficult to determine whether FY2026’s revenue growth leads to sustainable profit growth unless profitability, including cost of sales and personnel expenses, becomes clear.