Financial Summary for the First Quarter of the Fiscal Year Ending August 2026 (Japanese GAAP) (Consolidated)

Overview of Performance

In the first quarter of the fiscal year ending August 2026, net sales amounted to 16,354 million yen (up 8.3% YoY). Operating income declined sharply to 292 million yen (down 59.9% YoY), while net income attributable to owners of parent for the quarter was 668 million yen (up 41.8% YoY). The karaoke segment continued proactive store openings, achieving net sales of 15,844 million yen (up 8.8% YoY), but profits decreased to 638 million yen (down 38.4% YoY) due to lower sales at existing stores and increased fixed costs. The real estate management segment remained stable with net sales of 456 million yen (down 0.5% YoY) and profits of 70 million yen (up 131.7% YoY). The other segment benefited from solid earnings at food service outlets, but with the termination of the bathing business, net sales were 174 million yen (down 16.1% YoY) and it recorded a loss of 54 million yen.

Outlook and Impact of Corporate Integration

The consolidated earnings forecast for the full fiscal year ending August 2026 anticipates net sales of 82,544 million yen (up 19.0% YoY), operating income of 12,966 million yen (up 13.8% YoY), ordinary income of 12,911 million yen (up 11.3% YoY), and net income attributable to owners of parent between 7,500 million yen and 9,493 million yen (up 42.6% to 80.5% YoY). On November 1, 2025, the karaoke store business and other operations of Standard Co., Ltd. were succeeded via an absorption-type company split, resulting in goodwill of 3,096 million yen being recognized. This increased the number of karaoke stores, strengthening the business base and accelerating growth strategy. The company aims to achieve the ultimate goal of its mid-term management vision 'Entertainment as Infrastructure' through active store openings and diversification of services.