Amazia Narrows Nine-Month Operating Loss to ¥101 Million as Revenue Rises 17.5%

Sales up 17.5%, gross profit up 70.8%

Amazia, Inc. (TSE: 4424), which runs the manga app Manga BANG! and, since the previous fiscal year, an IT solutions business, published consolidated results for the first nine months of FY9/2026 — October 1, 2025 to June 30, 2026 — on August 13, 2026 under Japanese GAAP. Net sales rose 17.5% to ¥2,446 million, while the operating loss narrowed to ¥101 million from ¥323 million, the ordinary loss to ¥96 million from ¥321 million and the loss attributable to owners of the parent to ¥65 million from ¥326 million. The loss per share was ¥9.99 against ¥49.66. The company's shares are listed on the Tokyo Stock Exchange.

The improvement came almost entirely from the gross line. Cost of sales rose only 5.4% to ¥1,788 million, so gross profit climbed 70.8% to ¥657 million and the gross margin widened from 18.5% to 26.9%. Selling, general and administrative expenses rose a more modest 7.1% to ¥758 million. Gross profit grew by about ¥272.6 million and SG&A by about ¥50.6 million; the difference is the ¥222.1 million by which the operating loss shrank, and the operating margin moved from −15.5% to −4.1%. The filing does not break cost of sales down by type.

One-off gains trimmed the net loss further

Non-operating items were small: income of ¥5.5 million, including a ¥3.6 million foreign-exchange gain, against expenses of ¥0.9 million, mostly ¥0.7 million of office-relocation costs. Extraordinary gains of ¥38.4 million did more work. The largest was a ¥24.7 million gain on the reversal of stock acquisition rights, alongside an ¥11.0 million reversal of a provision for losses on an affiliate's business, a ¥2.0 million reversal of the allowance for doubtful accounts and a ¥0.7 million gain on the sale of investment securities, against an impairment loss of ¥1.4 million. The pre-tax loss was therefore ¥59.4 million against ¥326.8 million; after income taxes of ¥6.2 million the net loss was ¥65.6 million, all of it attributable to owners of the parent. Comprehensive income was identical to the net loss.

Entertainment swung to a segment profit

Entertainment, which contains Manga BANG!, grew revenue 10.1% to ¥2,261 million and earned a segment profit of ¥145 million against a loss of ¥42 million a year earlier. The company says added ad inventory, anniversary events and a range of campaigns improved advertising ARPU in the app, but that restraining advertising spending on cost-effectiveness grounds reduced monthly active users, so in-app charging revenue fell. Sales of its own Manga BANG Comics imprint were strong, helped by continued investment in original works, including webtoons, and by rising sales of existing volumes. The cross-border e-commerce site Fandom Tokyo, launched in February 2025, took more than ¥340 million in sales over the nine months.

IT Solutions, launched in the previous fiscal year, grew revenue 565.2% to ¥185 million from ¥27 million and narrowed its segment loss to ¥8 million from ¥38 million. Its system engineering services (SES) business performed well, helped by the consolidation of a newly acquired subsidiary and by active recruiting, which expanded both its pool of engineers and its customer base. By contrast, an SEO media business and a points app, both of which sell internet advertising, fell short of expectations on user acquisition and monetisation. Together the two segments earned ¥136 million, against ¥237 million of corporate costs not allocated to either.

An acquisition added goodwill while cash fell

Amazia acquired all the shares of an SES company on March 31, 2026. Because that was the acquisition date, only its balance sheet was consolidated in the first half, and its income statement has been consolidated from the third quarter. The purchase generated goodwill of ¥74.7 million; after ¥3.7 million of amortisation, ¥71.0 million remained at June 30, 2026.

Total assets rose 1.3% to ¥1,479 million from September 30, 2025. Cash and deposits fell by ¥153.3 million to ¥307.2 million, while goodwill, other investments and merchandise inventory rose. Liabilities increased by ¥108.7 million to ¥663.1 million, mainly in other payables and income taxes payable. Net assets fell 10.0% to ¥816 million, reflecting the nine-month loss and the reduced balance of stock acquisition rights, and the equity ratio dropped from 57.7% to 52.6%.

Guidance unchanged: a full-year loss and no dividend

Full-year guidance stands as announced on June 30, 2026: net sales of ¥3,321 million, up 16.8%, an operating loss of ¥123 million, an ordinary loss of ¥121 million and a loss attributable to owners of the parent of ¥99 million, or ¥15.12 per share. Set against the nine months, that implies fourth-quarter net sales of about ¥875 million, an operating loss of about ¥22 million and a net loss of about ¥33 million. No dividend was paid for FY9/2025 and none is forecast for FY9/2026.

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.