Media Do raised its full-year earnings and dividend forecasts on the strength of its e-book distribution business and the start of Seven Seas’ P/L consolidation. Following the sale of the Firebrand group, Firebrand is also expected to be excluded from consolidation, supporting further increases to the earnings outlook.
According to the earnings presentation materials, cumulative revenue for the first 2 quarters of the fiscal year ending February 2027 was ¥58.3 billion, up 8.3% year on year, while EBITDA increased to ¥2.01 billion. Operating profit, however, fell 15.0% year on year to ¥1.18 billion, and net income attributable to owners of the parent declined 61.6% to ¥500 million. Revenue growth was driven by the strong performance of the e-book distribution business and the start of Seven Seas’ P/L consolidation, resulting in performance above the initial forecast.
In today’s upward revision to the full-year earnings forecast, the company raised net income attributable to owners of the parent to ¥2.76 billion, reflecting the contribution from extraordinary income and the improvement in the overall earnings outlook despite the impact of costs related to the acquisition of Seven Seas. At the same time, it raised the dividend forecast by ¥15 from the initial ¥40 to ¥55, maintaining a total payout ratio of 30%.
As part of its review of the business portfolio, the company acquired Seven Seas in March 2026 and sold the Firebrand group in October 2026. From the third quarter onward, Firebrand’s revenue, EBITDA and operating profit will be excluded from consolidation, but the overall earnings forecast remains unchanged, with the recovery trend expected to continue, driven mainly by Seven Seas. Seven Seas generated more than ¥4 billion in cumulative revenue for the first 2 quarters, with revenue progress above plan.