| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue | ¥83.1B | ¥81.0B | +2.6% |
| Operating Income | ¥17.6B | ¥20.3B | -13.0% |
| Profit Before Tax | ¥18.0B | ¥20.9B | -13.7% |
| Net Income | ¥12.3B | ¥14.3B | -13.8% |
| ROE | 14.2% | 15.2% | - |
For the fiscal year ended March 2026, Revenue was ¥83.1B (YoY +¥2.1B +2.6%), Operating Income was ¥17.6B (YoY -¥2.6B -13.0%), Ordinary Income was ¥17.8B (YoY -¥2.0B -9.9%), and Net Income attributable to owners of the parent was ¥11.9B (YoY -¥3.0B -20.4%). Although revenue edged up, a decline in gross margin to 61.4% (from 62.2%, -0.8pt) and an increase in SG&A to ¥33.3B (+10.9%) led to a sharp contraction in operating margin to 21.2% (from 25.1%, -3.9pt). By segment, the BtoC Media achieved high growth and high profitability with Revenue of ¥16.9B (+15.1%) and Operating Income of ¥5.6B (+71.9%), while the core BtoB Media recorded Revenue of ¥66.2B (-0.2%) and Operating Income of ¥12.1B (-29.1%), which was the primary drag on consolidated profit. The financial position is very healthy with an Equity Ratio of 82.2% and cash and equivalents of ¥59.4B. Operating Cash Flow (OCF) was ¥13.7B, 1.15x Net Income, but Days Sales Outstanding (DSO) extended to 68 days due to an increase in trade receivables, indicating working capital efficiency issues. Guidance for the next fiscal year targets Revenue ¥92.0B (+10.7%) and Operating Income ¥20.0B (+13.3%), expecting a return to revenue and profit growth.
[Revenue] Revenue was ¥83.1B (+2.6% YoY), a slight increase. By segment, BtoC Media led double-digit growth with ¥16.9B (+15.1%), while the core BtoB Media remained flat at ¥66.2B (-0.2%), which restrained consolidated growth. BtoB accounts for 79.6% of total revenue, and its stagnation was a drag on top-line growth. Cost of sales rose to ¥32.1B (+4.8%), outpacing revenue growth and reducing gross margin to 61.4% (from 62.2%, -0.8pt). Changes in advertising project mix, unit price adjustments, and higher content production costs are seen as primary pressures on gross margin. Gross profit was ¥51.0B (+1.3%), remaining only slightly up.
[Profitability] Operating Income declined significantly to ¥17.6B (-13.0%). SG&A increased to ¥33.3B (+10.9%), producing negative operating leverage that far exceeded revenue growth of +2.6%. Investments in personnel, development, and marketing spending weighed on profitability. Operating margin contracted to 21.2% (from 25.1%, -3.9pt). Equity-method investment gains were ¥0.1B and other non-operating income ¥0.2B, both minor, yielding Ordinary Income of ¥17.8B (-9.9%). Profit Before Tax was ¥18.0B (-13.7%), with income taxes of ¥6.1B (effective tax rate 33.9%), resulting in Net Income attributable to owners of the parent of ¥11.9B (-20.4%). Net margin fell to 14.3% (from 18.5%, -4.2pt). By segment, BtoC Media maintained and expanded high profitability with an operating margin of 33.0%, while BtoB Media’s operating margin plunged to 18.2% (from 25.7%, -7.5pt), the main cause of consolidated profit decline. In conclusion: revenue up, profit down.
BtoB Media: Revenue ¥66.2B (-0.2% YoY), Operating Income ¥12.1B (-29.1%), Operating Margin 18.2% (from 25.7%, -7.5pt). Despite being the core business, deteriorating project unit prices and mix plus rising costs led to a sharp profit decline. BtoC Media: Revenue ¥16.9B (+15.1%), Operating Income ¥5.6B (+71.9%), Operating Margin 33.0% (from 22.1%, +10.9pt), achieving high growth and high profitability. Depreciation was ¥2.0B in BtoB and ¥0.4B in BtoC. Consolidated Operating Income of ¥17.6B roughly matches segment total of ¥17.7B; adjustments are minor. BtoC’s contribution to operating income rose to 31.6% (Operating Income ¥5.6B ÷ ¥17.6B), indicating progress in revenue diversification. Recovery of BtoB profitability is key to restoring consolidated performance.
[Profitability] ROE 13.2% (from 15.6%, -2.4pt) decomposes into Net Margin 14.3% × Total Asset Turnover 0.788 × Financial Leverage 1.22x. The decline is mainly driven by lower net margin, with multi-step deterioration including gross margin -0.8pt and operating margin -3.9pt. Operating margin of 21.2% contracted from 25.1% (-3.9pt), mainly due to SG&A ratio rising to 40.1% (from 37.1%, +3.0pt). ROA (on an Ordinary Income basis) is 16.7% (from 18.7%, -2.0pt). The decline in BtoB segment operating margin to 18.2% (from 25.7%, -7.5pt) was the principal drag on consolidated profitability. [Cash Quality] OCF/Net Income is 1.15x, confirming cash backing of profits, but OCF/EBITDA weakened to 0.68x, indicating softer cash conversion. Trade receivables increased to ¥15.5B (+¥1.5B), extending DSO to 68 days and absorbing working capital. Contract liabilities are ¥3.0B (YoY +¥0.05B), so cash mobilization from advance receipts is limited. [Investment Efficiency] Total Asset Turnover improved to 0.788x (from 0.742x, +0.046). Increase in Net Asset Turnover to 0.964x (from 0.870x, +0.094) was mainly due to a decrease in net assets (dividend outflows from retained earnings). EPS 61.34円 (from 77.18円, -20.5%), BPS 444.90円 (from 483.16円, -7.9%) show per-share metrics deteriorated. [Financial Soundness] Equity Ratio 82.2% (from 85.3%, -3.1pt), D/E 0.22x near debt-free, current ratio 470%, cash and equivalents ¥59.4B ensure strong short-term liquidity. Interest coverage is ample with EBIT ¥17.6B vs interest expense ¥0.03B. Lease liabilities ¥1.9B are minor; off-balance sheet liability concerns are limited.
Operating Cash Flow was ¥13.7B (YoY -25.8%). Starting from Profit Before Tax ¥18.0B, non-cash adjustments including depreciation ¥2.4B were added back, and working capital changes absorbed trade receivables increase -¥1.4B and contract liabilities increase +¥0.05B, with income tax payments -¥5.6B. OCF/Net Income is 1.15x, maintaining cash backing for profits but down from 1.29x year before. OCF/EBITDA deteriorated to 0.68x (OCF ¥13.7B ÷ EBITDA ¥20.0B), mainly due to working capital absorption from higher receivables. DSO extended to 68 days (Trade Receivables ¥15.5B ÷ Daily Sales ¥0.228B), necessitating review of credit and collection terms. Investing Cash Flow was +¥0.5B, as withdrawals of time deposits ¥2.0B and sales of securities ¥4.0B exceeded purchases of investment securities -¥3.0B and tangible/intangible asset investments -¥2.4B. Free Cash Flow was positive at ¥14.2B (OCF ¥13.7B + Investing CF ¥0.5B). Financing Cash Flow was -¥20.5B, primarily due to dividend payments -¥19.4B. Cash and equivalents declined to ¥59.4B (from ¥65.6B, -¥6.2B) but represent 56.3% of total assets, so liquidity remains ample.
This year’s earnings were mainly from operating activities; equity-method gains ¥0.1B and other non-operating income ¥0.2B were minor tailwinds, and one-off items were limited. The gap between Ordinary Income ¥17.8B and Net Income ¥11.9B is mainly due to income taxes ¥6.1B (effective tax rate 33.9%); no structural issues were identified. OCF ¥13.7B is 1.15x Net Income ¥11.9B, indicating good accrual quality. However, OCF/EBITDA at 0.68x is low, and the ¥1.5B increase in trade receivables confirms cash being tied in working capital. Comprehensive income ¥11.9B is nearly identical to Net Income ¥11.9B (Other Comprehensive Income -¥0.02B), so valuation differences have minimal impact. Depreciation ¥2.4B equals 2.9% of Revenue, at an appropriate level, and there are no signs of excessive asset capitalization or accrual manipulation. Earnings quality is evaluated as recurring and sustainable, but there is room to improve working capital management.
Guidance for the next fiscal year (FY ending March 2027): Revenue ¥92.0B (+10.7%), Operating Income ¥20.0B (+13.3%), Net Income attributable to owners of the parent ¥13.8B (+15.8%). Assumed Operating Margin is 21.7%, an improvement of +0.5pt from this year’s 21.2%. EPS forecast is 70.86円; dividend forecast is undisclosed. Assumptions include recovery of BtoB Media profitability (stabilization of project unit prices and gross margins), containment of SG&A growth (improvement to a level below revenue growth), and continued high growth and margins in BtoC Media. Revenue growth of +10.7% assumes a significant acceleration from +2.6% this year, requiring new project wins and deeper penetration of existing clients. Progress-rate evaluation is not applied immediately after full-year results are finalized, but quarterly monitoring should focus on BtoB order unit prices and gross margin trends, SG&A ratio, and normalization of DSO.
A year-end dividend of 100円 was paid, totaling dividends of ¥19.4B (same amount as prior year ¥19.4B). Payout Ratio is 163.0% (Total Dividends ¥19.4B ÷ Net Income attributable to owners of the parent ¥11.9B × 100; broadly consistent with XBRL data 1.296). FCF coverage is 0.73x (FCF ¥14.2B ÷ Total Dividends ¥19.4B), so current free cash flow does not fully cover dividends and internal reserves were used. Share buybacks were ¥0.0B with no practical impact. DOE (Dividends ÷ Equity) is 20.2%, high, but supported by a strong Equity Ratio of 82.2%. With cash and equivalents ¥59.4B, short-term dividend payment capacity is not an issue, but from a sustainability perspective, a Payout Ratio of 163% is excessive. If dividends remain at ¥19.4B while Net Income recovers to ¥13.8B next year, the Payout Ratio would still exceed 140%. Consideration is needed to smooth shareholder returns, move to performance-linked distributions, and rebalance against profit and cash generation.
Structural deterioration risk in BtoB Media profitability: The segment’s operating income declined -29.1%. Operating margin fell to 18.2% (from 25.7%, -7.5pt) due to downward pressure on project unit prices, advertiser budget constraints, and higher content production costs. BtoB accounts for 79.6% of revenue, so delayed recovery in gross margin or unit prices would have sustained adverse effects on consolidated results. The degree of advertising market improvement and qualitative changes in project mix will determine success.
Risk of SG&A becoming fixed and reversing operating leverage: SG&A rose to ¥33.3B (+10.9%), far outpacing revenue growth of +2.6%, pushing the SG&A ratio to 40.1% (from 37.1%, +3.0pt). Investments in personnel, development, and marketing are pressuring profitability. If revenue fails to grow as expected, fixed cost burden could cause operating leverage to reverse and further compress margins. Rigorous monitoring of cost-effectiveness and execution of efficiency measures are required.
Deterioration in working capital management and liquidity pressure risk: Trade receivables increased to ¥15.5B (+10.4%), extending DSO to 68 days and reducing OCF/EBITDA to 0.68x, weakening cash conversion. Continued lax credit control or lengthening collection terms would further absorb working capital and constrain dividend funding and growth investment capacity. Given the high Payout Ratio of 163% and sustained shareholder distributions, strict receivables management and revision of collection terms are urgent.
Profitability / Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| ROE | 13.2% | 10.1% (2.2%–17.8%) | +3.1pt |
| Operating Margin | 21.2% | 8.1% (3.6%–16.0%) | +13.1pt |
| Net Margin | 14.8% | 5.8% (1.2%–11.6%) | +9.0pt |
Profitability metrics all substantially exceed industry medians, supported by high-margin BtoC Media and stable earnings from BtoB.
Growth / Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 2.6% | 10.1% (1.7%–20.2%) | -7.5pt |
Revenue growth lags the industry median, with BtoB stagnation dragging on growth. Achieving next year’s guidance of +10.7% is a condition for returning to industry-average growth.
※Source: Company compilation
BtoC high growth and BtoB reversal are keys to a corporate recovery: BtoC Media achieved Revenue +15.1%, Operating Income +71.9%, Operating Margin 33.0%, advancing revenue diversification. Conversely, core BtoB Media posted Revenue -0.2%, Operating Income -29.1%, Operating Margin 18.2% (-7.5pt). Achieving next year’s guidance requires BtoB gross margin recovery and stabilization of project unit prices. Quarterly monitoring should focus on BtoB operating margin, order unit prices, and renewal rates.
Cash conversion efficiency and DSO normalization are essential KPIs: OCF/Net Income 1.15x confirms cash backing for profits, but OCF/EBITDA fell to 0.68x and working capital absorbed cash. Trade receivables increased by ¥1.5B, extending DSO to 68 days; review of credit and collection terms is urgent. With a high Payout Ratio of 163% and continued shareholder distributions, improving working capital efficiency is critical to balance cash generation and dividend sustainability. Next year’s DSO trend, trade receivables balance, and contract liabilities are key monitoring items.
Reconsideration of dividend policy sustainability and balance: Total dividends ¥19.4B, Payout Ratio 163%, FCF coverage 0.73x indicate dividends exceed profit and cash generation. While Equity Ratio 82.2% and cash ¥59.4B support short-term payments, maintaining high dividends during profit decline depletes reserves. Even with Net Income recovery to ¥13.8B next year, maintaining the same dividend would keep the Payout Ratio above 140%. Smoothing shareholder returns, moving to performance-linked distributions, and rebalancing against growth investment are necessary for medium- to long-term capital efficiency improvement.
This report is an earnings analysis document automatically generated by AI from XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company from public financial disclosures. Investment decisions are your responsibility; consult a professional advisor as needed.