Recruitment Media Carry ZIGExN to 15.5% Revenue Growth While Inflation Squeezes Its Housing and Travel Sites

One reportable segment, two very different halves

ZIGExN Co., Ltd. (TSE: 3679), the Tokyo-based operator of vertical job-listing media and life-service comparison sites, published consolidated results for the three months to June 30, 2026 on August 13, 2026 under IFRS. Revenue rose 15.5% to ¥7,807 million, gross profit 16.0% to ¥6,377 million, EBITDA 10.3% to ¥1,986 million, operating profit 13.1% to ¥1,601 million, pre-tax profit 13.4% to ¥1,598 million and profit attributable to owners of the parent 9.6% to ¥1,065 million, for basic earnings per share of ¥10.73 against ¥9.69. The company defines EBITDA as operating profit plus depreciation and amortisation plus impairment losses plus losses on retirement and revaluation of fixed assets, less gains on bargain purchase.

The group has one reportable segment, the Life Service Platform business, with everything else grouped as "Other" — so the split that actually matters is not in the segment note. Platform revenue from external customers rose 15.9% to ¥7,648 million and its segment profit 9.7% to ¥1,524 million; "Other", chiefly CORDA Inc.'s consumer-billing services and businesses still under consideration, contributed ¥159 million of external revenue and ¥25 million of segment profit, down from ¥33 million. Internally the platform is run as two halves: Vertical HR, the main earnings driver, and Life Service, which the company describes as its stable cash generator.

Vertical HR is five companies. Rejob Inc. runs the "Rejob" job-listing media for beauty and healthcare; Ties Inc. is a recruitment agency specialising in manufacturers; Ultimate Resourcings Group Inc. handles recruitment process outsourcing and other HR solutions; Upbase Inc. runs "Kensetsu JOBs" for construction and "RealEstate WORKS" for real estate; and Awesome Agent Inc. runs the "Drapita" job media for the transport sector. Hiring demand at Rejob's client salons stayed high and jobseeker activity was steady; at Ties both client hiring demand and jobseeker demand were steady, as they were across the rest of the unit. On July 1, 2026 — after the quarter closed — Ultimate Resourcings Group's recruitment-agency business was transferred to Ties Inc. by an absorption-type company split. Two companies newly entered the scope of consolidation during the quarter: Dorazamurai Inc. (株式会社ドラ侍) and Quantum B2B Online Sdn. Bhd.

The same inflation that helps one site is hurting three others

Life Service is where the picture divides, and inflation sits on both sides of the line. At the rental-search site Chintai Smocca, client demand for internet advertising was steady, but household spending restraint under inflation left moving demand somewhat weaker. At SEKAI PROPERTY, Beyond Borders Inc.'s cross-border property service, high construction-material prices and the weak yen softened demand on both the client and user sides; the renovation-company comparison site Reshop Navi met the same construction-cost pressure on both sides. Against that, the utility-cost comparison site enepi saw demand rise as households looked to switch fixed costs and energy contracts precisely because prices and bills were climbing. In travel, Apple World Inc.'s hotel-booking media for travel agents found domestic demand firm but overseas travel slowed somewhat on geopolitical factors, while on the client side leisure demand recovered only gradually under the weak yen and business travel held up relatively well. The used-car sites "Celtore" and "TCV" and the remaining media were stable on both sides.

The cost of that growth shows in the margin. Gross profit grew slightly faster than revenue, lifting the gross margin to 81.7% from 81.3%, but selling, general and administrative expenses rose 17.6% to ¥4,792 million — ahead of the 15.5% revenue line — so the operating margin slipped to 20.5% from 20.9% and the EBITDA margin to 25.4% from 26.6%. Depreciation and amortisation of ¥385 million accounts for the entire gap between operating profit and EBITDA this quarter, with no impairment charged. Below the operating line, finance income of ¥11 million against finance costs of ¥15 million left pre-tax profit at ¥1,598 million; a tax charge of ¥535 million took quarterly profit to ¥1,063 million, and because a ¥1 million loss fell to non-controlling interests, the ¥1,065 million attributable to owners of the parent is slightly higher than the group figure.

A balance sheet that shrank while revenue grew

Total assets fell ¥754 million to ¥39,802 million in a quarter of 15.5% revenue growth, with cash and equivalents down ¥144 million and trade and other receivables down ¥513 million. Liabilities fell further, down ¥784 million to ¥17,318 million: borrowings rose ¥611 million on balance, but trade and other payables fell ¥487 million, other financial liabilities ¥295 million and income taxes payable ¥521 million. Total equity was almost unchanged at ¥22,484 million against ¥22,453 million, yet the two equity lines diverge — equity attributable to owners of the parent fell to ¥22,306 million from ¥22,510 million as ¥1,087 million of dividends were paid and capital surplus fell ¥253 million, while non-controlling interests rose ¥234 million. Because liabilities shrank faster than assets, the equity ratio improved to 56.0% from 55.5%. Operating cash flow was ¥911 million after ¥922 million of income taxes paid, investing used ¥440 million (¥257 million on intangible assets and ¥149 million settling contingent consideration) and financing used ¥611 million, leaving cash of ¥12,579 million.

Full-year guidance is unchanged from the May 12, 2026 release: revenue of ¥33,500 million (+14.6%), EBITDA of ¥8,320 million (+9.6%), operating profit of ¥6,430 million (+8.8%), pre-tax profit of the same ¥6,430 million (+8.1%) — the filing guides both lines to an identical figure — and profit attributable to owners of the parent of ¥4,390 million (+5.6%), for earnings per share of ¥44.09. The first quarter therefore delivered 23.3% of guided revenue and 24.9% of guided operating profit, a little behind a straight quarter on the top line and a little ahead on profit. The annual dividend is guided up to ¥13.50 from ¥11.00 and, as last year, is paid entirely as a year-end dividend with no interim.

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.