The year ended September 2018
The rate of individual smartphone ownership in Japan increased to 60.9% in 2017. In particular, the rate reached 80% to 90% among people in Japan between the ages of 10 and 39. Qualitative expansion is progressing in segments centered on the millennial generation. Time spent on smartphones grew longer per owner in step with a rise in the usage rate of social media as well. These data suggest conspicuous qualitative changes (source: "White Paper 2017 Information and Communications in Japan" published by the Ministry of Internal Affairs and Communications). Smartphones have become the mainstream among devices for accessing the Internet, as described above. Under the circumstances, demand for content other than games, such as videos, music and electronic books, is expanding in an accelerated manner in markets for various services and applications whose expansion has focused on games up until this point. In addition, the use of social media is spreading to fields such as account settlement and purchasing. The influence of social media is increasing more and more. Demand for marketing support that makes the most of the characteristics of the respective social media is rising further for these reasons.
In this environment, SEPTENI HOLDINGS CO., LTD. (hereinafter the "Company") and its consolidated subsidiaries (hereinafter the "SEPTENI Group" collectively) focused on smartphone advertising and performance-based advertising. In particular, the SEPTENI Group stepped up efforts to sell video advertising, which had grown remarkably, and develop a market for brand advertising. At the same time, the Group advanced initiatives for expanding businesses overseas and worked to increase revenues in regions centered on Southeast Asia and Greater China.
Meanwhile, the SEPTENI Group implemented proactively hiring and training personnel using an AI-based personnel system focused on machine learning and invested in human resources through a new personnel system that was introduced in October 2017 for raising competiveness on medium- and long-term bases. The Group made prior investments for expanding media focused on GANMA!, a manga content app in the Media Content Business, and for strengthening its own content as well.
As a result, revenue increased to ¥15,272 million (up 3.9% year on year), non-GAAP operating profit decreased to ¥1,011 million (down 56.5% year on year) and profit attributable to owners of parent totaled ¥847 million (down 61.7% year on year).
Further, we have changed our policy and decided not to allocate corporate expenses that had been allocated to each segment, effective from FY9/18 onward. As a result of the change, Non-GAAP operating profits by segment for FY2017 have been revised retroactively based on the understanding that corporate expenses are not allocated. Though earning results before FY2016 have not been revised retroactively, these are recorded for your information.
Overview of consolidated full-year financial results
|Non-GAAP Operating profit||2,901||4,147||2,325||1,011||-56.5%|
|Profit attributable to owners of the parent||2,351||2,519||2,211||847||-61.7%|
The trend of consolidated full-year financial results
Financial results by segment
- Internet Marketing Business
- Media Content Business
- Elimination or Corporate