Tokyo Tsushin H1 Net Profit Nearly Triples to ¥135 Million — and Already Exceeds the Full-Year Target

Every segment grew profit by double digits

Tokyo Tsushin Group Inc. (TSE: 7359) published consolidated interim results for FY12/2026 on August 12, 2026, covering January 1 to June 30, 2026 under Japanese GAAP. Revenue rose 19.6% to ¥3,798 million, operating profit 66.8% to ¥234 million, ordinary profit 153.4% to ¥266 million and net profit attributable to shareholders 196.2% to ¥135 million, for earnings per share of ¥13.41 against ¥4.53. EBITDA — operating profit plus goodwill and depreciation charges — rose 19.1% to ¥381 million, and comprehensive income more than quadrupled to ¥167 million.

The segment structure changed this period. What were two reportable segments, Media and Platform, are now three: Fan Business has been split out, consolidating the former entertainment-tech and fan-club businesses. Prior-year figures have been restated on the new basis. Two newly established companies, T-PRO Inc. and iFYOU Inc., entered the consolidation.

Hyper-casual games set a quarterly record

Media — casual and hyper-casual game apps plus an image-maker service — lifted revenue 23.1% to ¥2,271 million and segment profit 14.5% to ¥258 million, with EBITDA up 13.2% to ¥284 million. Hyper-casual games led both lines and set an all-time quarterly revenue record in the April–June quarter. Several titles ranked highly in the free-game charts on both the App Store and Google Play, which lifted profitability. The group's key operating metric, the number of smartphone apps under advertising-backed operation, averaged 238 over the half.

Phone fortune-telling: flat revenue, 36% more profit

The Platform segment is the telephone fortune-telling business, and its revenue barely moved: ¥1,049 million, up 0.1%. Segment profit rose 35.6% to ¥198 million for an accounting reason — part of the customer-related asset amortisation booked on past acquisitions finished on schedule in March, so the amortisation charge fell. EBITDA rose a more modest 6.6% to ¥318 million, which is the better guide to the underlying business. The flagship Karis service traded steadily on its established presence; SATORI, bought from CyberAgent in 2023, was stable; and the Renai Sodan METHOD service set monthly revenue records for two consecutive quarters. Consultations over the half totalled 136,000.

Fan business grows 80% and takes on WHITE SCORPION

Fan Business lifted revenue 80.2% to ¥460 million and segment profit 81.5% to ¥48 million. B4ND, a messaging app built around supporting artists, grew membership on stronger promotion, particularly for its lead artists, and has now been profitable for seven consecutive quarters. The fan-club business held steady monthly subscription revenue on idol-group official sites and ran several fan-club events. In July the IP growth business acquired the affiliation rights and exclusive management contract for WHITE SCORPION, moving from indirect involvement through an alliance to direct artist management — which the company intends to combine with its own media reach and digital know-how.

The unchanged guidance now looks conservative

Tokyo Tsushin left the forecast published on February 12, 2026 in place: full-year revenue of ¥6,500 million (+4.5%), operating profit of ¥250 million (+27.9%), ordinary profit of ¥260 million (−60.9%) and net profit of ¥110 million (−52.3%), for earnings per share of ¥10.92. The declines on the ordinary and net lines reflect large one-off items in the prior year rather than the operating business. The half-year figures sit awkwardly against that: ¥266 million of ordinary profit is already 102% of the full-year target, and ¥135 million of net profit is 123% of it. Six months have also covered 94% of the operating-profit target and 58% of the revenue target.

Balance sheet and cash flow

Total assets rose 2.9% to ¥3,776 million: receivables up ¥225 million and advance payments up ¥85 million against ¥60 million less cash and ¥139 million of amortisation on goodwill, trademarks and customer-related assets. Liabilities fell 0.6% to ¥2,763 million as ¥132 million of short-term borrowings and ¥91 million of long-term borrowings were repaid against ¥130 million more accounts payable. Net assets rose 13.8% to ¥1,013 million, lifting the equity ratio to 23.8% from 20.8%. Operating cash flow was an inflow of ¥172 million, investing an inflow of ¥45 million — mostly ¥52 million from selling investment securities — and financing an outflow of ¥281 million. Cash ended the half at ¥1,077 million, ¥60 million lower. No dividend is paid or forecast.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.