First-half revenue was nearly flat, but profit growth led the way, leaving the full-year target more dependent on revenue.

Revenue for the six months from January through June 2026 was ¥7,798.910 million, up just 0.1% from ¥7,794.144 million in the same period a year earlier. Operating profit, however, was ¥873.569 million, up 26.7% from ¥321.261 million, while profit for the interim period attributable to owners of the parent was ¥515.627 million, up 36.5%. Profit growth substantially outpaced revenue growth, with the operating margin calculated at 11.2%, an improvement of approximately 7.1 percentage points from approximately 4.1% a year earlier.

The full-year forecasts are revenue of ¥17,500 million, operating profit of ¥1,600 million and profit attributable to owners of the parent of ¥960 million. Progress at the interim stage was 44.6% for revenue, 54.6% for operating profit and 53.7% for profit attributable to owners of the parent. The profit figures were ahead of the simple 50% interim benchmark, while revenue was below it. Working back from the full-year forecasts, the company needs to generate ¥9,701.090 million of revenue and ¥726.431 million of operating profit in the second half. The required second-half operating margin is approximately 7.5%, below the 11.2% achieved in the first half. This provides some leeway on profit, but the key question is whether the company can increase revenue while maintaining its margin.

Revenue in the disclosed reporting segments was ¥3,723.720 million for the Digital Transformation business, ¥2,922.113 million for the Digital Marketing business and ¥900.781 million for the IP and Entertainment business. Segment profit was ¥366.790 million, ¥1,042.279 million and ¥80.243 million, respectively. The recovery in profit in the Digital Marketing and DX businesses contributed to the improvement in consolidated operating profit. In Q3, attention will focus on which segment will make up the revenue shortfall and whether the improvement in operating margins to the 11% range represents sustained profitability rather than temporary cost controls.

The company says operating profit is progressing ahead of plan, but it has not disclosed quantitative supplementary information on the orders required in the second half, the order backlog or the monthly run rate for revenue. In the Q3 results, it will be necessary to confirm whether the full-year forecasts of ¥17,500 million for revenue and ¥1,600 million for operating profit are maintained or revised, revenue progress, the factors behind changes by segment, and management’s own assessment of the required second-half levels.