Addition of Financial Materials for the Second Quarter of the Fiscal Year Ending August 2026

Overview of Financial Results

Consolidated results for the second quarter of the fiscal year ending August 2026 recorded net sales of 38,932 million yen (Year-over-Year +14.5%), operating income of 5,004 million yen (Year-over-Year -2.1%), and net income attributable to owners of parent of 3,884 million yen (Year-over-Year +21.7%). Net sales marked a historical high for 2Q results, but operating income declined due to the reactionary decrease in collaboration-related sales and upfront investments in new initiatives. On the other hand, net income increased due to recognition of gains on fixed asset sales.

Segment Performance and Business Trends

The karaoke business saw net sales increase by 14.9% Year-over-Year thanks to continued proactive store openings, although existing store sales slightly declined due to the reactionary decrease following the previous fiscal year’s large collaboration projects. Operating income slightly increased in the karaoke segment, rose in real estate management due to revenue from new properties, while other businesses recorded losses due to some facility closures despite strong performance in existing food service stores. Approximately 70 karaoke stores under the brand 'JOYSOUND' were absorbed into subsidiary Standard by spin-off, with results reflected from November.