HAKUHODO DY HOLDINGS INCORPORATED
2433・Prime Market・Services
Business
Hakuhodo DY Holdings Incorporated is a holding company established in 2003 through the management integration of three companies: Hakuhodo, Daiko, and Yomiko Advertising. It comprises 385 subsidiaries and 66 affiliated companies, providing integrated marketing solutions domestically and internationally. Its business scope extends beyond the handling and production of advertising media such as newspapers, television, and the internet, encompassing consulting, research, sales promotion, PR, and event management. Its major clients are leading companies in Japan and overseas, and it also pursues global expansion through its strategic business organization, kyu. Revenue (on a gross profit basis) for FY2026 (ending March 2026) is ¥406,037 million.
Business Model
The company undertakes an integrated range of services for client companies—from marketing strategy formulation to media handling, advertising production, digital marketing, consulting, and content production—with gross profit (fee and commission income after deducting media costs and other expenses from gross revenue) as its primary revenue source. It is working to diversify its revenue model by strengthening its digital domain through Hakuhodo DY ONE and Digital Holdings (Opt, etc.), combined with cross-selling proposals that leverage the specialized expertise of each group company.
Company Strengths
The group has a core of three companies—Hakuhodo, Daiko, and Yomiko Advertising—supported by a subsidiary network of 385 companies including regional and specialized firms nationwide. In FY2026 (ending March 2026), gross profit reached ¥406,037 million and revenue reached ¥861,003 million, and the scale and customer base as one of Japan's largest advertising groups make short-term imitation by competitors difficult.
In addition to making Hakuhodo DY ONE (the integrated entity formed from the former DAC and IREP) a wholly owned subsidiary, the company brought Digital Holdings (including Opt) under its umbrella as a subsidiary in December 2025. This has internalized full-funnel capabilities in the digital domain, building a structure that can accelerate cross-sell proposals. The adjusted operating margin before goodwill amortization for FY2026 (ending March 2026) has already achieved the medium-term target (13% or higher) ahead of schedule.
The company has implemented in-house-developed technology solutions, including its proprietary AI "Virtual Seikatsusha" (Virtual Consumer), trained on data from tens of thousands of consumers. Leveraging strategy formulation based on advanced analytics, the group has improved its win rate in large competitive pitches and enhanced the value-added of its operations. Group-wide shared platforms such as Hakuhodo Technologies underpin this capability.
ENVALITH's Perspective
Performance Trend
Revenue (net basis) declined 9.7% from ¥953,316 million in FY2025 to ¥861,003 million in FY2026. The main causes were the deconsolidation of United Inc. (shift to equity-method accounting) and a decline in government-related business following the prior-period surge. However, the second half (October 2025 to March 2026) showed signs of recovery, with revenue up 0.9% year on year. Operating profit improved substantially, rising 18.9% from ¥37,581 million to ¥44,675 million, and the operating profit margin on revenue improved from 3.9% to 5.2%. Net profit attributable to owners of the parent recovered sharply, up 55.8% from ¥10,768 million to ¥16,775 million. A tailwind came from the external environment, with the domestic advertising market performing solidly amid improving employment and income conditions. For FY2027, the company forecasts revenue of ¥910,000 million, operating profit of ¥46,700 million, and net profit of ¥26,000 million, with the full-year contribution from the consolidation of Digital HD as a subsidiary expected to drive revenue growth.
Growth Strategy
Aiming to achieve FY2027 (ending March 2027) targets through three pillars: marketing structural reform, cultivation of new growth areas, and remodeling of the global business
Establishing a profitability improvement framework through the business integration effects of Hakuhodo DY ONE, accelerating cross-sell proposals through the consolidation of Digital HD (Opt, Inc., etc.) as a subsidiary, and strengthening full-funnel capabilities through the implementation of proprietary technologies such as the in-house AI "Virtual Consumer". Signs of a return to revenue growth appeared in the second half of FY2026 (ending March 2026), indicating that the results of structural reform are beginning to materialize.
In the consulting business, strategic consulting serves as a starting point for collaboration on large-scale integrated marketing projects. In the content business, the new company Chapter-I, Inc. was established in the music domain, and HAKUHODO Athlete Solution Inc. has begun full-scale operations in the sports domain. Content and incubation promotion functions have been consolidated into the holding company to speed up investment decision-making.
Improving profitability is being pursued as the top priority through the renewal of the management structure of the strategic business organization kyu and the shift of administrative functions to a shared services model. In the ASEAN region, unified operations between Hakuhodo Inc. and Hakuhodo DY ONE have begun. The overseas operating loss narrowed significantly from ¥(7,539) million in the previous period to ¥(2,223) million, confirming the effectiveness of cost control measures.
Last updated: July 19, 2026