| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥771.2B | ¥767.6B | +0.5% |
| Operating Income / Operating Profit | ¥14.8B | ¥20.4B | -27.6% |
| Ordinary Income | ¥22.8B | ¥30.0B | -24.1% |
| Net Income / Net Profit | ¥8.3B | ¥6.3B | +31.9% |
| ROE | 1.2% | 0.9% | - |
For the fiscal year ended March 2026, Revenue was ¥771.2B (YoY +¥3.7B +0.5%), a marginal increase, while Operating Income was ¥14.8B (YoY -¥5.6B -27.6%) and Ordinary Income was ¥22.8B (YoY -¥7.2B -24.1%), both declining. Meanwhile, Net Income increased to ¥8.3B (YoY +¥2.0B +31.9%), primarily because last year's large special losses (impairment losses of ¥23.6B, etc.) narrowed to ¥3.2B this fiscal year. While topline stagnated and operating-stage profitability deteriorated, non-operating items—foreign exchange gains of ¥4.2B and equity-method investment gains of ¥2.6B—supported Ordinary Income, but the deterioration in core business profitability was pronounced.
【Revenue】 Revenue was ¥771.2B (+0.5%), a slight increase. By segment, the core Media & Content segment was ¥701.1B (-0.5%), slightly down, while Telemarketing was ¥104.4B (+5.2%), securing revenue growth. Media & Content accounts for 90.9% of total revenue and its stagnation constrained company-wide growth. Telemarketing grew due to expanded external orders but its relatively small scale limits impact on the whole company. Gross profit was ¥227.5B (gross margin 29.5%), down ¥19.4B from ¥246.9B (32.2%) the prior year, with gross margin deteriorating by about 2.7 percentage points. Content acquisition costs and production cost increases likely pressured gross profit.
【Profitability】 Operating Income declined to ¥14.8B (-27.6%). SG&A expenses were ¥212.7B (SG&A ratio 27.6%), down ¥13.8B from ¥226.5B (29.5%) the prior year, improving the SG&A ratio by about 1.9 percentage points; however, this did not fully offset the gross margin deterioration and Operating Margin fell to 1.9% (prior year 2.7%). Ordinary Income was ¥22.8B (-24.1%), with non-operating income of ¥9.4B (including foreign exchange gains ¥4.2B and equity-method investment gains ¥2.6B) partly offsetting operating weakness. Special losses were ¥3.6B, significantly reduced from ¥25.6B the prior year; there were no impairment losses this year (prior year ¥23.6B), and valuation losses on investment securities of ¥2.5B were a main component. As a result, profit before tax doubled to ¥19.6B (prior year ¥8.2B), and after deducting corporate taxes of ¥6.6B, Net Income was ¥8.3B (+31.9%). The increase in Net Income is a rebound from reduced special losses, while core operating profitability weakened. In conclusion, the results show revenue up but profit down, with very slow revenue growth and notable deterioration in operating-stage profitability.
Media & Content: Revenue ¥701.1B (-0.5%), Operating Income ¥13.8B (-39.0%), with an Operating Margin of 2.0%, a marked deterioration from ¥22.7B and 3.2% in the prior year. Declines in gross margin and worsening cost structure in the core business compressed profitability. Telemarketing: Revenue ¥104.4B (+5.2%), Operating Income ¥0.9B (+139.7%), Operating Margin 0.9%, turning from an operating loss of ¥-2.3B in the prior year to profitability. Expansion of external orders and improved profitability contributed, but margins remain low. Media & Content accounts for 93.5% of consolidated Operating Income, maintaining high business concentration risk.
【Profitability】Operating Margin 1.9% (down -0.8pp from 2.7%), Ordinary Income Margin 3.0% (down -0.9pp from 3.9%), indicating deterioration in core profitability. ROE 1.2% (prior year 0.9%), ROA 2.3% (prior year 3.2%) — capital efficiency remains low and ROE improvement reflects a temporary recovery in net margin. EBITDA is ¥45.0B, estimated EBITDA margin 5.8%, indicating limited cash-generating capacity. 【Cash Quality】Operating Cash Flow (OCF) ¥53.4B is 6.4x Net Income of ¥8.3B; notwithstanding a large decrease in accounts payable (-¥73.2B) causing working capital outflow, improvements in other items absorbed this and OCF remained solid. OCF/EBITDA ratio is 1.19x, indicating good cash conversion. 【Investment Efficiency】Capex ¥26.2B is below depreciation ¥30.2B, indicating maintenance/renewal-focused allocation. Intangible asset investment is estimated at ¥11.7B, reflecting continued investment in content and systems. 【Financial Soundness】Equity Ratio 73.6% (up +5.9pp from 67.7%), D/E ratio 0.36x — highly sound. Current Ratio 270%, Quick Ratio 269%, short-term liquidity is robust, with Cash & Deposits ¥296.8B far exceeding Current Liabilities ¥227.4B. Total Assets ¥945.5B (prior year ¥1005.0B, -¥59.5B) contracted due to working capital compression from accounts payable decreases and improved asset efficiency.
OCF was ¥53.4B (YoY +¥9.0B +22.9%), solid; subtotal OCF was ¥56.7B after adding back depreciation ¥30.2B to profit before tax ¥19.6B and adjusting for equity-method investment gains/losses, etc. In working capital, outflows included inventory increases of ¥10.1B and an increase in trade receivables of ¥5.5B, while accounts payable decreased by ¥73.2B, a large cash outflow. The decrease in accounts payable is presumed due to payment progress for content rights fees and production costs, and may reflect timing of period-end accruals. After deducting corporate tax payments of ¥5.1B, OCF was ¥53.4B. Investing Cash Flow was -¥37.2B, driven by capex ¥26.2B and intangible asset investments. Free Cash Flow was positive at ¥16.2B (OCF ¥53.4B + Investing CF -¥37.2B), covering dividends of ¥8.5B by 1.9x. Financing Cash Flow was -¥9.3B, mainly dividend payments and repayment of long-term debt. Year-end Cash & Deposits balance increased to ¥296.8B (prior year ¥287.5B, +¥9.3B), maintaining ample liquidity.
Of Net Income ¥8.3B, Ordinary Income was ¥22.8B, so recurring earnings quality is relatively high. However, non-operating income of ¥9.4B includes foreign exchange gains of ¥4.2B, a temporary effect that boosted recurring-stage profits. Equity-method investment gains of ¥2.6B are also non-operating; Operating Income of ¥14.8B represents only 65% of Ordinary Income. Special items net to a loss of ¥3.2B (valuation losses on investment securities ¥2.5B, loss on disposal of fixed assets ¥1.1B, etc.), minor compared with prior year special losses of ¥25.6B (impairment losses ¥23.6B). Thus the increase in Net Income this period is due to one-off factors, and the quality of recurring core operating earnings has deteriorated. Comprehensive Income was ¥22.8B, well above Net Income ¥8.3B; Other Comprehensive Income ¥14.5B was mainly due to valuation differences on securities ¥10.7B. Unrealized valuation gains on held securities are boosting equity but are not realized profits. OCF ¥53.4B is 3.6x Operating Income ¥14.8B and 1.19x estimated EBITDA ¥45.0B, indicating small accruals/cash timing differences and good cash-based earnings quality.
Full Year guidance projects Revenue ¥745.0B (-3.4%), Operating Income ¥7.5B (-49.2%), Ordinary Income ¥10.0B (-56.1%), Net Income ¥2.6B (-68.7%), a substantial decline in profitability and a conservative plan. Progress rates stand at 103.5% for Revenue, 197.3% for Operating Income, 227.6% for Ordinary Income, and 319.6% for Net Income, meaning results have already materially exceeded the full-year guidance. This likely reflects either an initially very conservative guidance or that the reduction in special losses and improvement in non-operating results in the first half exceeded expectations. The full-year guidance assumes profit declines, presumably incorporating expected higher content costs and operating expenses in H2. It is unclear whether guidance will be revised, but given current progress, the full-year result is likely to exceed guidance.
Year-end dividend ¥30 (interim dividend ¥0), annual dividend ¥30, with a Payout Ratio of 132.8%, well above Net Income. The year-end dividend is unchanged from the prior year. Total dividends ¥8.5B are covered 1.9x by FCF ¥16.2B, so sustainable from a cash flow perspective. However, a payout ratio above 100% on a Net Income basis implies potentially excessive distribution; given Net Income volatility from special items, the dividend policy can be interpreted as aiming for stable dividends based on recurring earnings or FCF. No share buybacks were executed; shareholder returns are dividends-only. Considering Cash & Deposits ¥296.8B and low leverage (D/E 0.36x), current dividend levels are financially sustainable.
Risk of gross margin deterioration from rising content costs: Gross margin fell from 32.2% to 29.5% (down 2.7pp), and ongoing upward pressure on content rights fees and production costs persists. Intensifying competition for sports broadcasting rights and exclusive content could further erode gross margins and compress Operating Margin.
Risk of stagnant subscriber base growth and rising churn: Revenue growth was marginal and Media & Content declined, suggesting stagnation in net subscriber additions or rising churn. Fierce competition with streaming services could increase customer acquisition costs and make maintaining ARPU difficult.
Business concentration risk and volatility of non-operating gains/losses: With Media & Content accounting for 93.5% of Operating Income and variability in foreign exchange gains (this period +¥4.2B) and valuation losses on investment securities (this period -¥2.5B), profits are highly sensitive. Exchange rate fluctuations and market valuation swings may undermine the stability of Ordinary Income and Net Income.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 1.9% | 8.1% (3.6%–16.0%) | -6.2pt |
| Net Margin | 1.1% | 5.8% (1.2%–11.6%) | -4.8pt |
Profitability metrics are well below industry medians, placing the company in the lower tier for operating efficiency and profit generation.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue Growth (YoY) | 0.5% | 10.1% (1.7%–20.2%) | -9.6pt |
Growth lags the industry median significantly, indicating inferior topline expansion capability within the sector.
※Source: Company aggregation
Urgent need to lift core operating profitability: Operating Margin 1.9% is far below the industry median of 8.1%; recovery of gross margin and improvement of cost structure are essential. Optimization of content costs, increasing ARPU, and reducing churn to improve both price and volume are key. Given negative operating leverage at present, even slight revenue increases may lead to margin deterioration; progress on structural reforms will be a focal point.
Cash generation and financial robustness are positive factors: OCF is 6.4x Net Income, FCF covers dividends 1.9x, and Cash & Deposits ¥296.8B with Equity Ratio 73.6% indicate top-tier balance-sheet strength in the sector. The company has resilience to short-term profit volatility and capacity for continued dividends, M&A, or business investment. While payout ratio exceeds 100% on a Net Income basis, on a FCF basis it is sustainable. Clear capital allocation policy (dividend level retention, share buybacks, growth investment) will be important for investor expectations.
This report was generated by AI analyzing XBRL financial statement data to produce an automated earnings analysis. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company from public financial statements. Investment decisions should be made at your own responsibility and, if necessary, in consultation with a professional advisor.