To our shareholders and investors,
We would like to express our sincere appreciation for your continued support.
Guided by our mission, “Making the world a better place through the Internet,” we are making proactive investments across our business: Game Business, Live Entertainment Business, Anime, Manga and Merchandising Business and AI Business. To reflect the current state of our businesses and their expanded scope, and to clarify our focus on the entertainment and AI sectors, we have updated our business presentation, beginning with the full-year earnings announcement for the fiscal year ended June 30, 2026.The status of each business for the fiscal year ended June 30, 2026 is as follows:
Game Business
We focused on stabilizing revenue through long-term operations of existing smartphone games while also advancing the development of new titles. The business remained centered on existing titles and overall performance was sluggish. However, preparations for the upcoming major third-party IP title and new consumer games are progressing steadily.
Live Entertainment Business
In the Platform Business, we have been expanding the content and features of the live streaming app, REALITY. In addition, we continued to make aggressive investments in the Production Business, and the Live Entertainment Business as a whole has performed steadily.
Anime, Manga and Merchandising Business
Although the Anime Business has remained steady, we have continued to invest and take other steps towards launching new businesses on a full-scale.
AI Business
We integrated the Engineering Business, which commercialized our group-wide shared technology functions, into the conventional DX Business to establish this new business that drives AI utilization and monetization. The B2B domain performed solidly, resulting in higher revenue and profit. Furthermore, driven by steady progress in our shift toward a recurring-revenue model, operating profit exceeded our initial expectations.
As a result, for the fiscal year ended June 30, 2026, the Group’s consolidated net sales were ¥51,324 million (down 10.1% YoY), and operating profit was ¥4,026 million (down 17.2% YoY).
To achieve continuous growth as a group, we have identified Live Entertainment Business, Anime, Manga, and Merchandising Business, and AI Business as continuous growth businesses, and Game Business as a long-term investment business. We will continue to enhance corporate value by steadily growing core earnings in the continuous growth businesses and capturing upside in earnings from the long-term investment business.
We kindly ask for your continued support and encouragement.
Yoshikazu Tanaka
Chairman and CEO