Can the Points business’s high growth and membership base continue through FY2026-Q3?

In FY2026-H1, consolidated revenue was ¥18.764 billion and operating profit was ¥2.302 billion, up 18.4% and 57.5%, respectively, year on year. The Mobile Services business in particular generated revenue of ¥17.438 billion and operating profit of ¥3.550 billion, up 14.2% and 27.7%, respectively. The fact that the reported segment profit exceeds consolidated operating profit reflects results from other businesses and intersegment adjustments. The next earnings release should also be checked to see whether the company continues to disclose an explanation for this difference.

The Points business alone generated revenue of ¥15.259 billion and operating profit of ¥4.053 billion in FY2026-H1, representing substantial year-on-year growth of 60.9% in revenue and 94.1% in operating profit. The main explanatory factors were Moppy’s financial offers, membership growth, expansion of Moppy’s gross profit, the rollout of operating expertise to Point Income, and collaboration with AD.TRACK. The Points business gross margin was disclosed at 31.5%, but no complete bridge has been provided linking changes in membership, ARPU, advertising rates and advertiser mix to the increase in profit.

Moppy had 6.96 million members at the end of FY2026-H1, up 15.2% year on year, while cumulative app downloads were 7.54 million, up 22.2%. Membership increased by 920,000 from 6.04 million in FY2025-H1, indicating that the user base itself is expanding. However, unless membership growth is accompanied by higher advertising rates or usage frequency, revenue growth will not necessarily translate into recurring profit growth. In FY2026-Q3, advertising offer volume, demand for financial advertising, point-award costs and gross margin should be monitored alongside membership.

In the next earnings release, the key question will be whether the Points business’s high growth is continuing through expansion of its membership base and advertising network, rather than reflecting a temporary contribution from financial offers. In particular, it will be important to check whether membership exceeds 7 million, whether the growth rate in cumulative app downloads is maintained, and whether the gross margin remains at or above 31.5%. For the collaboration between Point Income and AD.TRACK, quantitative disclosure of the contribution to margins or operating profit, rather than merely confirmation that the initiative continues, would make it easier to assess the quality of growth.