In order to achieve growth in corporate value over the medium and long term, we follow these three measures: “maximize revenue through business growth”, “business expansion through M&A”, and “optimize shareholders’ equity”.
For our first measure, “maximize revenue through business growth”, we will work toward developing global markets for each of our business segments.
In the Sports segment, we are developing betM, the first social betting service by a Japanese company to compete in the large and continuously growing Australian betting market. We will utilize the expertise we have accumulated through TIPSTAR to innovate in the Australian betting market.
The Lifestyle segment is experiencing steady growth in user numbers. Of its 20 million total users, about 40% are from overseas, with about half of that number from North America. We will continue to acquire overseas users while strengthening the monetization of FamilyAlbum Premium and other major products.
In the Digital Entertainment segment, we will bring MONSTER STRIKE to emerging markets in countries experiencing rapid economic growth, starting with India’s mobile game market, aiming to take the top spot in the market.
For the second measure, “business expansion through M&A,” we will make effective use of our cash reserves to aggressively execute M&A to create synergies that accelerate core business development and the growth of existing businesses.
The third measure is “optimize shareholders’ equity”. Increasing profit scales and share prices are the primary ways to return profits to shareholders. To achieve this, we will establish a capital allocation policy and a business portfolio management policy based on it, and conduct business investments and M&A to maximize profit scales. In addition, we will optimize shareholders’ equity to increase corporate value in the medium and long term by means such as flexibly repurchasing treasury shares to reach a total payout ratio of 100% until we achieve stable dividends and ROE levels that exceed the cost of shareholders’ equity. For FY2025, we expect net sales of 147 billion yen, EBITDA of 23 billion yen, operating income of 18.5 billion yen, and profit attributable to owners of the parent of 12 billion yen.
For more on our Initiatives for Business Growth and Enhancement of Corporate Value, please refer to the FY2024 Q4 Financial Results Briefing Materials linked below.
https://pdf.irpocket.com/C2121/RLCz/IdNK/l7zk.pdf