SAYLOR ADVERTISING.INC.
2156・Standard Market・Services
Business
Sailor Advertising Co., Ltd. was founded in 1951 and is a comprehensive advertising company with its main business areas in the Shikoku, Chugoku, and Kyushu regions as well as Tokyo. With seven consolidated subsidiaries, the company provides a full range of advertising services, from traditional media such as television, radio, newspapers, and magazines to internet and mobile advertising, sales promotion, and event planning and management. In October 2025, the company made Fellow Co., Ltd. a subsidiary, entering the software development field. It also operates a retail business handling local specialty product showrooms and e-commerce sites for Shikoku regional products, building a diversified business portfolio rooted in the local community. Its main customers are regional companies, government agencies, and municipalities, underpinned by more than 75 years of local sales track record.
Business Model
Since various expenses excluding outsourcing costs are largely fixed, changes in total net sales directly affect gross profit, giving the company a structure in which the gross profit margin determines operating income. In the advertising business, revenue is recognized net of media purchasing and outsourcing costs (¥2,044 million in FY2026 (ending March 2026)). In the retail business, revenue comes from the margin on sales at Bussankan (local specialty product stores) and e-commerce sites, while in the software development business, revenue is derived from contract development, maintenance, and cloud service usage fees. This is an asset-light business model that does not require large capital expenditures.
Company Strengths
Since its founding in 1951, the company has developed operations not only in the Shikoku, Chugoku, and Kyushu areas but also in Tokyo and Fukuoka, building a customer base and a track record of transactions with government and municipal bodies through over 75 years of community-focused sales activities. In FY2026 (ending March 2026), continued transactional relationships with government entities have been confirmed, including the receipt of orders for municipal proposal projects related to the House of Councillors election and the Osaka-Kansai Expo.
Total sales in the internet/mobile advertising segment reached ¥2,096 million in FY2026 (ending March 2026), up 105.9% year on year, accounting for approximately 27.6% of the ¥7,603 million total sales in the advertising business, making it the largest media category. Amid a market environment increasingly shifting to digital, this segment has maintained stable orders and sales, underpinning the group's overall earnings base.
Starting with the acquisition of Awawa Co., Ltd. as a subsidiary in 2003, the company has carried out a series of M&A transactions, including Ad-Sail, Gong Co., Ltd., FISH Co., Ltd., MD & Associates Co., Ltd., adear Co., Ltd., and Fellow Co., Ltd. The acquisition of Fellow as a subsidiary in October 2025 marked the company's entry into the software development field, recording software development business revenue of ¥120 million and segment profit of ¥2 million in the half-year period.
ENVALITH's Perspective
Performance Trend
Revenue on a revenue-recognition-standard basis improved to ¥2,224 million (up 6.1% year on year), but gross sales came to ¥7,858 million (down 1.4% year on year), affected by a rebound decline from large spot deals recorded in the prior period. Gross profit improved to ¥1,730 million (up 4.3% year on year), but SG&A expenses swelled to ¥1,753 million (up 6.3% year on year), pushing the company into an operating loss of ¥23 million. A sharp drop in subsidy income, from ¥53 million in the prior period to ¥5 million, was also a factor that compressed ordinary profit to ¥2 million. The revenue trend over the past five fiscal periods (¥1,939 million in FY2022 → ¥2,224 million in FY2026) shows a gradual expansionary trend, but operating profit has continued to decline since peaking at ¥168 million in FY2023, making margin improvement the biggest challenge.
Growth Strategy
Evolution into a marketing design company and expansion of business areas through M&A and new business ventures
Expanding consulting-type solutions leveraging data and AI through the introduction of AI tools, hiring of digital specialist personnel, and holding of generative AI schools. Promoting organizational transformation from "sales staff" to "producers," aiming to shift from selling advertising space to providing problem-solving proposals.
The software development business of Fellow, which became a subsidiary in October 2025, recorded revenue of ¥121 million and operating profit of ¥2 million in its first year (approximately half a year). FY2027 (ending March 2027) will mark the first full-year contribution, with synergies expected between the automated communication and cloud reservation system and the advertising communication business.
Launched a sports marketing business aimed at supporting client companies' branding and recruitment efforts. Recognition of advertising package revenue has been postponed to FY2027 (ending March 2027) or later, but a support system for global information dissemination for regional companies has been established. Strategic structure-building is also underway for expanding the business area into Western Japan.
In addition to the stable operation of "Tokushima-Kagawa Tomoni Market - Furusato Butsankan -," launched a new brand jointly with local companies to promote the appeal of Shikoku. Total sales grew to ¥134 million (up 123.0% year on year), but segment losses of ¥6 million continued, making early profitability a key challenge.
Last updated: July 19, 2026