The company announced that enrollment at Meiko Gijuku tutoring schools had rebounded sharply to over 100,000, with revenue forecast at ¥27 billion and operating profit at ¥1.7 billion for the current fiscal year. It also revised its medium-term management plan and indicated a policy of strengthening upfront investment.
Meiko Network Japan, which operates the nationwide Meiko Gijuku tutoring school network, announced that it expects revenue for the fiscal year ending August 2027 to rise 3.7% year on year to ¥27 billion and operating profit to increase 12.5% to ¥1.7 billion. Student enrollment has rebounded sharply, and earnings are expected to improve, led by the Meiko Gijuku business. The previous fiscal year ended with higher revenue but lower profit, while the current fiscal year is expected to reflect a recovery trend.
However, these figures were announced after revising the three-year medium-term management plan, with the fiscal year ending August 2027 as its final year. Under the current fiscal-year plan announced with the earnings results, revenue was raised to ¥27 billion from the ¥26.5 billion forecast revised upward last October, while operating profit was lowered to ¥1.7 billion from the ¥2 billion set in last year's upward revision.
The downward revision to operating profit reflects an increase in investment expenses. During the current fiscal year, the company will invest ¥150 million to strengthen recruitment, ¥100 million to expand facilities at its Japanese-language schools, and ¥100 million in marketing. It will strengthen upfront investment over the next year and aim to increase revenue and profit margins under its medium-term plan from the following fiscal year onward.