Media business to remain profitable, but focus shifts to AI marketing revenue contribution and scalability

The media business generated revenue of ¥461.506 million and segment profit of ¥17.029 million in the interim period of FY2026, remaining profitable at the segment level. Revenue was driven primarily by the co-created media project business, which has expanded from the previous fiscal year. The business model is shifting away from dependence on advertising revenue from AppBank.net alone toward a combination of joint projects with regional media outlets and business partners.

On a quarterly basis, first-quarter media revenue was ¥222.581 million. Based on the difference between this figure and interim cumulative revenue of ¥461.506 million, standalone second-quarter revenue was ¥238.925 million. Whether revenue recovered in the second quarter, and whether it can exceed this level in the third quarter, will be important indicators of the sustainability of the recovery in co-created media projects. Because the scope of the accounts and business composition differed in the year-earlier period, a simple year-on-year comparison should be avoided.

Media segment profit was limited to ¥17.029 million, insufficient to offset the company's operating loss of ¥116.600 million. At the same time, the media business is advancing AI-assisted article production, AIO initiatives, and distribution of articles to other companies' platforms. It is also applying know-how accumulated through its own media operations to the AI marketing business and pursuing client acquisition. However, as of the interim period, the company had not provided specific figures for AI marketing client numbers, project pricing, revenue, gross profit, or repeat business rates.

In the next earnings release, the key points will be how much the recovery in co-created media project revenue and new AI marketing client acquisition contributed to actual revenue, gross profit, and segment profit. Of particular importance will be whether the segment remains profitable on a standalone third-quarter basis and whether disclosures of page views and advertising revenue per page view resume. The next benchmark will be whether profitability is accompanied by growth in revenue and gross profit, rather than being driven by cost reductions alone.