Adways returned to profitability in its interim results for the fiscal year ending December 2026, with net sales and operating income exceeding the same period of the previous year. Growing demand for UNICORN and contributions from financial advertising drove performance.
Adways announced its interim results for the fiscal year ending December 2026, reporting net sales of ¥6,324 million, up 7.1% year on year, and operating income of ¥956 million, marking a return to profitability. Key drivers included growing advertising demand for UNICORN, increased demand from clients operating manga and game apps, and stronger advertising demand from financial-sector clients.
According to the earnings report, on a reference basis excluding the impact of the Chinese subsidiary being removed from the scope of consolidation following the transfer of its shares, transaction volume increased 14.3% year on year and net sales increased 16.7%. This indicates that underlying business growth was substantial.
In an upward revision to its full-year forecast announced the same day, the company projected net sales of ¥11.8 billion, operating income of ¥1.5 billion, ordinary income of ¥1.75 billion, and net income attributable to owners of the parent of ¥1.5 billion. The revision was attributed to first-half results significantly exceeding the previous forecast.
On the cost side, lower selling, general and administrative expenses and higher gross profit resulting from increased sales contributed to earnings. Selling, general and administrative expenses declined to ¥2,143 million from ¥2,483 million in the same period of the previous year. By segment, the ad platform business recorded net sales of ¥2.6 billion and segment profit of ¥955 million, while profit from the agency business rose substantially to ¥632 million.
Under its dividend policy, the company uses a DOE of at least 2% as a guideline and plans a year-end dividend of ¥7.06, plus a commemorative dividend of ¥5.00 marking the 20th anniversary of its listing on the Tokyo Stock Exchange. The annual dividend is expected to total ¥12.06. The company is also reviewing its business portfolio and pursuing reforms to its cost structure.