TETSUJIN Holdings, Inc.

Business Details

Subsidiary Tetsujin Enterprise Co., Ltd. operates directly-managed karaoke stores under the "Karaoke no Tetsujin" and "Karaoke no Tetsujin Collabo Mix" brands. As of the end of the third quarter of FY2026 (ending March 2026), the company operated 31 stores in total: 15 in Tokyo, 9 in Kanagawa Prefecture, 1 in Chiba Prefecture, 1 in Aichi Prefecture, 1 in Osaka Prefecture, 1 in Kyoto Prefecture, 1 in Ehime Prefecture, 1 in Fukuoka Prefecture, and 1 in Niigata Prefecture. The "Collabo Mix" format, which specializes in collaborations with anime, games, and other content, is being actively rolled out mainly in regional cities. Three new stores were opened during the cumulative third quarter period.

Recent Overview

Revenue was down 12.4% year on year, but existing stores remained solid at 102.7%; performance at Collabo Mix stores improved significantly.

For the cumulative third quarter of FY2026 (ending August 2026) (September 2025 to May 2026), revenue was ¥2,757 million (down 12.4% year on year for the same quarter) and segment profit was ¥406 million (down 2.6%). The revenue decline reflects fluctuations versus the prior-period comparison base, but sales at the 26 comparable existing stores remained solid at 102.7% year on year, capturing peak-season demand such as year-end/New Year gatherings and farewell/welcome parties. Performance at Collabo Mix stores improved significantly due to the introduction of highly popular content. Three new stores were opened during the period, and the company plans to continue opening stores mainly in regional cities going forward. On the other hand, store operating costs such as facility maintenance and labor costs continue to rise amid inflation. Impairment losses shrank significantly from ¥177 million in the same quarter of the prior year to ¥16 million.

Key Products

Growth Drivers

• Capturing new demand through the active rollout of "Karaoke no Tetsujin Collabo Mix" stores in regional cities
• Significant improvement in Collabo Mix store performance from the introduction of highly popular anime and game content
• Solid existing-store performance, with sales at the 26 existing stores up 102.7% year on year
• Sales concentration effect from seasonal demand (year-end parties, farewell/welcome parties, etc.) in the second and third quarters
• Stabilized earnings from a significant reduction in impairment losses (from ¥177 million in the same quarter of the prior year to ¥16 million in the current period)
• Benefits from improved consumer sentiment due to wage increases and inbound demand

Risks

• Continued increase in store operating costs such as facility maintenance and labor costs amid inflation
• Increased initial cost burden for new store openings, including tenant fees, equipment costs, and labor costs
• Impact on customer traffic from climate factors (bad weather, extreme heat) in the fourth quarter (June to August)
• Risk of profit pressure depending on trends in utility costs such as electricity charges
• Intensifying competition as major chains accelerate facility renewals and new store openings
• Seasonal fluctuation risk, with sales concentrated in the second and third quarters (divergence from full-year results)
• Declining competitiveness of physical entertainment venues due to diversification of entertainment options such as social media and online games
• Rising recruitment and labor costs due to labor shortages