Advertising recovery after monetization resumed remains unverified for the media business

Company-wide revenue in FY2026 H1 rose 4.3% year on year to ¥960.832 million, while media business revenue fell by ¥65.774 million to ¥747.157 million from ¥812.931 million a year earlier. Segment profit also declined by ¥67.974 million, from ¥224.481 million to ¥156.507 million. Although the company as a whole secured revenue growth, expansion in the business serving medical institutions offset declines in the core media business.

The company explained that advertising revenue for the business as a whole declined because monetization was suspended for certain channels on a video distribution platform operated by a third party. It subsequently disclosed that monetization had largely resumed after the affected channels underwent the required corrections and operational improvements and submitted applications for re-review following the end of H1. However, the amount of revenue lost due to the suspension, the number of channels for which monetization has resumed, advertising revenue by channel and monthly advertising revenue after resumption have not been disclosed, so it is not yet possible to verify whether the recovery has been reflected in earnings.

The decline in media business revenue was absorbed because revenue from the business serving medical institutions increased 98.8% year on year. Company-wide revenue rose by ¥40.437 million, from ¥920.395 million in the previous corresponding period to ¥960.832 million, but the media business itself reported lower revenue. Company-wide revenue growth therefore should not be equated with recovery in the core advertising business. In FY2026 Q3, the focus will be on whether media revenue turns positive year on year and whether segment profit recovers to above ¥156.507 million.

The FY2026 H1 disclosure also did not provide numerical details for operating KPIs such as PVs, UUs, subscribers by channel, advertising rates or the amount of advertising revenue lost due to the monetization suspension. Accordingly, in the earnings release, it will be important to see whether the company can disclose more than simply that monetization has resumed, including the resumption rate, the amount of advertising revenue recovered, and the respective contributions from traffic to sites such as Baby Calendar and video distribution revenue.