GENDAI AGENCY INC.
2411・Standard Market・Information & Communication
Advertising Business
Core Group segment centered on advertising for pachinko halls
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Revenue | ¥7,431 million | ¥7,619 million | ↓ |
| Segment Profit | ¥907 million | ¥695 million | ↑ |
| Segment Profit Margin | 12.2% | 9.1% | ↑ |
| Internet Advertising Revenue | ¥3,338 million | ¥2,862 million (derived from YoY of 116.6%) | ↑ |
| Insert Advertising Revenue | ¥1,643 million | YoY 75.8% | ↓ |
| Share of Group Consolidated Revenue | 98.7% | 99.2% | ↓ |
Business Details
The Company (Gendai Agency) and its consolidated subsidiaries mainly provide planning and production services for pachinko hall advertising. The segment operates internet advertising, insert advertising, promotional materials, creative production, media, and store-visit promotion, among others. In addition to pachinko halls, the Company is pursuing client development in areas such as fitness facilities and housing-related businesses to diversify revenue. This core segment accounts for approximately 98.7% of the Group's consolidated revenue.
Recent Overview
The sharp decline in print media was offset by a shift to high-margin digital media, substantially improving profit margins
In FY2026 (ending March 2026), revenue declined to ¥7,431 million (down 2.5% YoY), but segment profit increased substantially to ¥907 million (up 30.6% YoY). Internet advertising grew to 116.6% YoY, while insert advertising fell sharply to 75.8% YoY. Although segment profit fell short of initial expectations due to the sharp decline in print media from the third quarter onward and increased SG&A expenses from human capital investment, the shift in revenue structure progressed steadily. The issuance of the "Advertising Guidelines Third Edition" in May 2025 also reduced regulatory risk.
Key Products
Growth Drivers
- Shift in revenue structure toward high value-added services through expanded sales of internet advertising (DSP advertising and the proprietary site "Pachi7")
- Clarification of advertising methods and reduced risk of sudden regulatory changes under the "Advertising Guidelines Third Edition" issued in May 2025
- Revitalization of the pachinko hall industry and recovery in advertising demand driven by the spread of smart gaming machines and the introduction of machines with new features such as "Lucky Trigger 3.0 Plus" and "Bonus Trigger"
- Diversification of the revenue base through client development in fields outside pachinko halls, such as fitness facilities, housing-related businesses, and franchise industries
- Improved profitability through new service offerings utilizing generative AI tools and the enhancement of existing services' value
- Securing profitability through appropriate pricing adjustments in response to environmental changes such as rising prices
Risks
- A sharper-than-expected decline in print media advertising such as insert advertising (became evident from the third quarter of FY2026 onward, at 75.8% of the prior-year level)
- Risk of voluntary advertising restrictions in the pachinko hall industry (sudden shifts in demand due to guideline revisions)
- Risk that increased SG&A expenses from human capital investment such as hiring and wage increases could pressure profits
- A structure with high revenue dependence on a specific industry (pachinko halls), making the segment susceptible to deterioration in that industry's environment
- Risk of declining advertising demand due to macroeconomic deterioration, including Middle East tensions, geopolitical risk, and rising energy prices
Last updated: June 19, 2026