KOSHIDAKA HOLDINGS Co.,LTD.

Business Details

Operates directly-managed domestic outlets under the "Karaoke Manekineko" and "JOYSOUND" brands. Overseas, the company operates the "Manekineko" brand in four countries: South Korea, Malaysia, Thailand, and Indonesia. Under the medium-term management vision "Entertainment as Infrastructure (EIP)," the company is pursuing aggressive store openings, expansion of PER (Private Entertainment Rooms), and the provision of entertainment offerings beyond karaoke. As of the end of Q3 FY2026 (ending August 2026), the company operated 786 domestic stores and 29 overseas stores (across 4 countries).

Recent Overview

Net sales rose 16.0% year on year, but profit declined 6.7% due to rising costs, resulting in higher revenue but lower profit.

Karaoke segment net sales for the cumulative Q3 period of FY2026 (ending August 2026) were ¥57,635 million (up 16.0% year on year). Segment profit, however, declined to ¥8,520 million (down 6.7% year on year). Following the absorption-type company split from Standard (70 stores inherited), the number of domestic stores expanded to 786, up 83 stores from the end of the prior fiscal year. Same-store sales remained roughly flat year on year, partly due to a rebound decline from prior-year collaboration-related sales. In addition to rising labor costs and utility expenses, expenses associated with the introduction of the new POS system and E-bo, renovation investment in existing stores, and rent revisions weighed on profit. Overseas, 4 new stores were opened in Malaysia and 1 in Indonesia, and KOSHIDAKA MALAYSIA SDN. BHD. was newly added to the scope of consolidation.

Key Products

Growth Drivers

• Continued aggressive new store openings (26 stores opened in the cumulative Q3 period, expanding to 786 domestic and 29 overseas stores)
• Substantial expansion of the store network through the absorption-type company split (73 stores inherited from Standard, acquiring the JOYSOUND brand)
• Monetization of non-karaoke entertainment through the rollout of the "E-bo" entertainment box at all stores
• Accelerated overseas expansion into Southeast Asia (Malaysia, Thailand, Indonesia) and the U.S. and Philippines
• Acceleration of initiatives toward the medium-term management vision "EIP Final Stage" (targeting sales of ¥100 billion in FY2027 (ending August 2027))
• Maintaining same-store sales through agile pricing strategies and active content collaborations

Risks

• Profit pressure from rising labor costs and utility expenses (partially mitigated by expense management optimization, but risk persists)
• Increased costs associated with new store openings, renovation investment in existing stores, rent revisions, and the introduction of a new POS system and DX initiatives
• Volatility risk in collaboration-related sales (the prior-year rebound decline affecting same-store sales)
• Impairment risk related to goodwill recorded from the absorption-type company split (¥2,982 million, amortized evenly over 13 years, a provisional figure pending completion of purchase price allocation)
• Geopolitical and foreign exchange risk in overseas operations (Southeast Asia, U.S., Philippines)
• Risk of rising utility and import costs due to continued yen depreciation