| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥2581.1B | ¥1458.7B | +76.9% |
| 営業利益 | ¥434.2B | ¥276.9B | +56.8% |
| 経常利益 | ¥336.5B | ¥213.3B | +57.8% |
| 純利益 | ¥-51.2B | ¥35.3B | -245.0% |
| ROE | -2.1% | 1.4% | - |
For the fiscal year ending March 2026, Revenue was ¥2,581.1B (YoY +¥1,122.4B +76.9%), Operating Income was ¥434.2B (YoY +¥157.3B +56.8%), and Ordinary Income was ¥336.5B (YoY +¥123.2B +57.8%), delivering substantial top-line and operating profit growth. However, Net Income attributable to owners of the parent declined to ¥116.7B (YoY -¥14.0B -10.7%), indicating the top-line expansion did not sufficiently translate to the bottom line. Operating margin was 16.8% (down 2.2pt from 19.0% a year earlier), and Net Income margin contracted to 4.5% (down 4.4pt from 8.9%), reflecting margin compression across stages. Revenue growth was driven by the acquisition effect, price revisions, and improved utilization in the Golf Business, which also led operating profit growth. However, interest expense rose more than fivefold to ¥101.6B (prior year ¥19.3B), and a high effective tax rate of 65.0% (tax burden factor 0.35) materially impeded the conversion from Ordinary Income to Net Income.
【Revenue】Revenue of ¥2,581.1B (YoY +76.9%) was comprised of the Golf Business at ¥2,306.3B (+129.8%), expanding 2.3x YoY and accounting for 89.4% of total, while the Pachislot/Pachinko Machine (Gaming Machines) Business declined sharply to ¥274.8B (-39.6%). The Golf Business’ rapid growth reflects consolidation from the prior-year acquisition of Accordia Golf Co., increased utilization, play price revisions, member-share sales revenue, and higher ancillary revenues (restaurants, merchandise, etc.). Sales of goods transferred at a point in time were ¥2,416.2B, and goods/services transferred over a period (membership-based services, etc.) were ¥169.4B, confirming expansion of stock-like revenue. The Gaming Machines Business saw significant declines in revenue and profit due to market contraction and delayed new product rollouts, revealing structural weakness.
【Profitability】Gross profit was ¥854.8B (gross margin 33.1%), up 62.9% YoY, but gross margin fell 2.9pt from 36.0% a year earlier. Selling, general and administrative expenses (SG&A) were ¥420.5B (SG&A ratio 16.3%), up 69.6% YoY, largely reflecting increased goodwill amortization of ¥74.8B (prior year ¥3.97B). Operating Income remained high at ¥434.2B (operating margin 16.8%), but the YoY margin decline stemmed from a change in business mix (decline in the share of high-margin gaming machines) and higher post-M&A goodwill amortization. Ordinary Income rose 57.8% YoY to ¥336.5B, but non-operating expenses increased substantially to ¥123.4B from ¥78.7B, with interest expense of ¥101.6B absorbing 23.4% of EBIT. Income before taxes was ¥333.9B, and total corporate taxes were ¥216.9B (effective tax rate 65.0%), resulting in Net Income attributable to owners of the parent of ¥116.7B, a YoY decrease of 10.7%. Extraordinary items comprised ¥2.65B of extraordinary gains (e.g., ¥4.10B gain on disposal of fixed assets) and ¥5.25B of extraordinary losses (e.g., ¥7.16B loss on disposal of fixed assets, ¥2.79B impairment losses), netting to ▲¥2.6B and having a limited negative impact. The primary drivers of Net Income decline were the expansion of non-operating expenses and the high tax rate. Consequently, the fiscal year featured strong revenue and operating profit growth but a decline in Net Income.
The Golf Business posted Revenue of ¥2,306.3B (YoY +129.8%), Operating Income of ¥455.99B (YoY +147.1%), and an operating margin of 19.8%, generating approximately 99% of consolidated Operating Income. Operating margin improved 1.3pt YoY from 18.5% to 19.8%, driven by scale expansion and optimization of utilization and pricing. Conversely, the Gaming Machines Business recorded Revenue of ¥274.8B (YoY -39.6%) and Operating Income of ¥7.12B (YoY -94.0%), with an operating margin of 2.6% (down 23.5pt from 26.1%), indicating a substantial deterioration in profitability. Absolute operating profit in gaming machines fell by ¥111.5B from ¥118.6B to ¥7.1B, reflecting weakened fixed-cost absorption and delayed new product launches. The marked divergence in profitability and growth across segments increases group-level earnings volatility due to an asymmetric portfolio.
【Profitability】Operating margin of 16.8% declined 2.2pt from 19.0% a year earlier but remains 9.1pt above the manufacturing median of 7.8%, indicating a high operating profitability level. Gross margin was 33.1% (prior year 36.0%), and SG&A ratio was 16.3% (prior year 17.0%); SG&A restraint did not fully offset the gross margin decline. Net Income margin was 4.5% (prior year 8.9%), significantly compressed as operating profitability was eroded by interest and tax burdens. ROE was 4.7% (prior year 5.4%), below the manufacturing median of 9.2%, with the decline in Net Income margin suppressing capital efficiency. ROE decomposition shows Net Income margin 4.5% × Asset Turnover 0.24 turns × Financial Leverage 4.33×, highlighting dependence on high leverage. ROA (Ordinary Income basis) was 3.1% (improving from 2.8% prior year), but low asset turnover (0.24 turns) remains a bottleneck for capital efficiency.
【Cash Quality】Operating Cash Flow was ¥412.1B, 3.53× Net Income of ¥116.7B, and accrual ratio was ▲2.7%, indicating strong cash backing of profits. However, OCF/EBITDA was only 0.62× (based on an estimated EBITDA of ¥668B), with tax payments of ¥204.4B, interest payments of ¥85.6B, and working capital changes limiting cash conversion efficiency. Free Cash Flow was positive at ¥205.9B (Operating CF ¥412.1B - Investing CF ¥206.2B), covering dividends of ¥78.9B by 2.6×.
【Investment Efficiency】Fixed asset turnover was low at 0.27× (prior year 0.20×), reflecting an asset-intensive model with tangible fixed assets of ¥7,585.4B (70.4% of total assets) and intangible assets of ¥1,925.3B (17.9% of total assets). Capital expenditure was ¥312.4B, 1.34× depreciation of ¥233.3B, indicating both maintenance and growth capex. Goodwill stood at ¥1,398.9B, representing 56.2% of equity, implying high sensitivity of capital to future impairments.
【Financial Soundness】Equity Ratio was 23.1% (prior year 22.1%) and remains low; Debt/Equity stood at 3.33× and interest-bearing debt / capital at 68.9%, indicating high leverage. Interest-bearing debt totaled approximately ¥5,936B (long-term borrowings ¥5,525.4B + short-term borrowings ¥410.3B, including current portion), and Debt/EBITDA was high at 8.9×. Interest coverage was 4.27× (EBIT / interest expense) and 6.57× (EBITDA / interest expense), indicating near-term serviceability but vulnerability to rising rates or EBITDA swings. Current ratio was 0.99× and quick ratio 0.96×, both below 1.0, signaling a thin short-term liquidity buffer. Cash and deposits were ¥499.3B (down 35.8% from ¥778.0B), compressing surplus liquidity and warranting attention to near-term funding.
Operating Cash Flow was ¥412.1B (YoY +65.3%). Pre-tax income before tax adjustments was ¥333.9B, with non-cash charges including depreciation ¥233.3B and goodwill amortization ¥74.8B, bringing the subtotal before working capital changes to ¥697.0B. Working capital movements were broadly neutral: inventory increase ▲¥14.3B, trade receivables decrease +¥13.6B, trade payables decrease ▲¥6.0B, showing no signs of manipulative profit adjustments. Corporate tax payments of ¥204.4B and interest payments of ¥85.6B were substantial cash outflows, depressing OCF/EBITDA to 0.62×. Investing CF was ▲¥206.2B, primarily driven by capex of ▲¥312.4B, while portfolio rebalancing included sales of securities ¥397.95B and purchases ▲¥322.92B. Financing CF was ▲¥460.2B: repayments of long-term borrowings ▲¥623.65B offset by new borrowings of ¥273.89B, resulting in net deleveraging of ▲¥349.76B. Dividend payments ¥78.89B and lease liability repayments ¥31.20B were also included. Cash and cash equivalents decreased ¥254.3B from ¥747.1B at the beginning of the period to ¥492.8B at period-end, reflecting debt repayments and executed investments which compressed surplus liquidity.
Core recurring earnings are concentrated in the Golf Business, whose Operating Income of ¥455.99B accounts for approximately 99% of consolidated operating profit. The Gaming Machines Business’ Operating Income of ¥7.12B declined 94.0% YoY, indicating fragility as a sustainable earnings base. Non-operating income of ¥25.7B (interest income ¥3.2B, dividend income ¥1.5B, etc.) appears low in transitory risk, while non-operating expenses of ¥123.4B include ¥101.6B of interest expense as a structural cost tied to interest rates and borrowings. Extraordinary items were ¥2.65B of gains (e.g., ¥4.10B disposal gains) and ¥5.25B of losses (e.g., ¥7.16B disposal losses, ¥2.79B impairment losses), netting to ▲¥2.6B and having limited one-off effect on Net Income. The roughly ¥317.5B gap between Operating Income ¥434.2B and Net Income attributable to owners of the parent ¥116.7B is primarily driven by interest burden and high tax expense (effective tax rate 65.0%), indicating structurally low conversion from operating earnings to final earnings. Operating CF of ¥412.1B is 3.53× Net Income, with an accrual ratio of ▲2.7%, signaling strong cash support for profits and no indications of earnings inflation through accounting manipulation; however, OCF/EBITDA of 0.62× highlights room to improve cash conversion efficiency. Comprehensive income was ¥124.8B, ¥8.1B above Net Income ¥116.7B, with valuation gains on other securities +¥3.6B and adjustments related to retirement benefits +¥4.2B contributing modestly, indicating limited impact on earnings quality.
For the fiscal year ending March 2027, management projects Revenue ¥2,859.0B (YoY +10.8%), Operating Income ¥520.0B (YoY +19.8%), Ordinary Income ¥378.0B (YoY +12.3%), and Net Income attributable to owners of the parent ¥203.0B (YoY +73.9%), indicating expected revenue and profit growth. The projected Operating Income growth (＋19.8%) outpaces revenue growth, likely reflecting expectations of continued utilization and price improvements in the Golf Business, SG&A restraint, and a bottoming-out in the Gaming Machines Business. The large projected Net Income increase (+73.9%) appears to assume a relative reduction in interest burden (progressive deleveraging) and normalization of the effective tax rate from the prior year’s 65.0%. Projected EPS of ¥205.83 (prior year actual ¥118.33) implies an improvement of ¥87.50 consistent with the Net Income plan. Dividend guidance is ¥40 per share (interim ¥20, year-end ¥20), halved from prior-year total ¥80 (interim ¥40, year-end ¥40), reducing the payout ratio to 19.4%; this may reflect a mid-year dividend level adjustment. As the fiscal year-end is the reporting date, interim progress is not evaluated here; achievement of the plan depends on sustaining operating profit improvements and improving non-operating expense items.
Annual dividend was ¥80 per share (interim ¥40, year-end ¥40), totaling ¥78.90B. Against Net Income attributable to owners of the parent of ¥116.7B, the payout ratio was 67.6%, a high level, while dividend coverage by Free Cash Flow was 2.6×, indicating adequate coverage. The prior year also featured a similar payout ratio of 60.4%, suggesting a stable dividend policy. Share buybacks were minimal at ¥0B this period (prior year ¥0.01B), indicating a dividend-centric shareholder return policy. Next-year dividend guidance is ¥40 per share (interim ¥20, year-end ¥20), halving the payout relative to this period and lowering payout ratio to 19.4%, which appears deliberately conservative relative to the large Net Income growth plan (¥203.0B) in favor of financial consolidation. Given the current high leverage (D/E 3.33×), goodwill balance of ¥1,398.9B (56.2% of equity), and a current ratio of 0.99×, prioritizing debt repayment and internal reserves over dividend increases is a reasonable stance.
High leverage and interest burden risk: With interest-bearing debt of approximately ¥5,936B, Debt/EBITDA of 8.9×, and D/E of 3.33×, leverage is high and interest expense of ¥101.6B absorbs 23.4% of Operating Income. Interest coverage (EBIT / interest) is 4.27×, indicating limited resilience to interest rate rises or EBITDA declines. Refinancing or renegotiation risk on long-term borrowings of ¥5,525.4B and potential increases in interest payments from changes in the rate environment directly affect profitability and shareholder return capacity. Current ratio of 0.99× and cash of ¥499.3B indicate thin short-term liquidity, which could lead to funding stress in adverse market scenarios.
Goodwill impairment risk: Goodwill of ¥1,398.9B (56.2% of equity ¥2,489.1B) could substantially erode capital via impairment if future performance deteriorates. Current goodwill amortization is ¥74.8B with an estimated remaining period of approximately 18.7 years; changes in impairment test assumptions (discount rates, growth rates, business plans) could trigger impairments. Triggers could include lower Golf Business utilization, intensified price competition, or regulatory changes, and a single impairment event could reduce Equity Ratio by more than 10pt.
Business concentration and structural weakness in the Gaming Machines Business: The Golf Business accounts for 89.4% of Revenue and 99% of Operating Income, indicating extreme single-business dependence. The Gaming Machines Business saw Revenue down 39.6% and Operating Income down 94.0%, with market contraction, tighter regulation, and delayed new product rollouts causing structural weakness that may persist. If Golf Business growth slows, the group’s earnings base could weaken and losses in gaming machines could pressure consolidated results. Macroeconomic risks—adverse weather, demand cycles, decline in golf participation, tax/regulatory changes—could increase revenue volatility.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 16.8% | 7.8% (4.6%–12.3%) | +9.1pt |
| 純利益率 | -2.0% | 5.2% (2.3%–8.2%) | -7.2pt |
Operating-stage profitability significantly exceeds the manufacturing median, but Net Income margin falls below the median due to interest and tax burdens.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 76.9% | 3.7% (-0.4%–9.3%) | +73.2pt |
Top-line growth is outstanding within the industry due to M&A effects.
※Source: Company compilation
High growth led by the Golf Business and strong operating-stage profitability: Revenue +76.9% and Operating Income +56.8% reflect substantial top-line and operating profit expansion, with the Golf Business operating margin of 19.8% well above the industry median. Improved utilization, price revisions, member-share sales, and ancillary revenue expansion indicate high medium-term operating growth potential. However, the large gap between Operating Income (16.8% margin) and Net Income (4.5% margin) means interest expense (¥101.6B) and tax burden (effective rate 65.0%) substantially constrain Net Income growth. The next-year guidance for Net Income +73.9% assumes normalization of interest and tax burdens.
High leverage and challenges in financial soundness: Debt/EBITDA 8.9×, D/E 3.33×, and current ratio 0.99× indicate strained leverage and liquidity. Operating CF of ¥412.1B is solid, but capex of ¥312.4B, dividends ¥78.9B, and net borrowings repayment of ▲¥349.8B reduced cash to ¥499.3B (▲35.8%). Free Cash Flow of ¥205.9B covers dividends but a thin liquidity buffer and interest rate risk pose concerns. Goodwill of ¥1,398.9B (56.2% of equity) embeds the risk of significant capital impairment under future performance deterioration, necessitating close monitoring of impairment resilience.
Segmental asymmetry and structural weakness in the Gaming Machines Business: The Golf Business accounts for 89.4% of Revenue and 99% of Operating Income, while the Gaming Machines Business saw Revenue ▲39.6% and Operating Income ▲94.0%, with operating margin down to 2.6% (from 26.1%). Structural market contraction and delayed new product rollouts make short-term recovery uncertain. The extreme portfolio concentration increases group earnings volatility; sustainable Golf Business growth and a recovery in Gaming Machines profitability are key to medium-term stability.
This report is an earnings analysis document automatically generated by AI reviewing XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company based on public financial statements. Investment decisions should be made at your own responsibility and, where appropriate, in consultation with professional advisors.