Medix Inc.

Business Details

The company comprehensively provides data management services, Website Production (Web Integration), and other offerings, with managed/programmatic advertising (search, display, and feed advertising) sales and operations as its core business. It positions the BtoB domain as a priority focus area, providing consistent, end-to-end support for clients' overall digital marketing through a one-stop system in which account planners serve as the point of contact. Beginning with FY2026 (ending March 2026), the company started preparing consolidated financial statements, newly consolidating Sales Lab (inside sales) and Asia Star Communications Co., Ltd. (Taiwan) as subsidiaries. Operations are managed under a single segment.

Recent Overview

Recorded net sales of ¥4,256 million in its first consolidated results, with business expansion progressing through subsidiarization

The company prepared consolidated financial statements for the first time starting with FY2026 (ending March 2026). Five companies, including Sales Lab (inside sales, made a subsidiary in September 2025) and Asia Star Communications Co., Ltd. (Taiwan, made a subsidiary in January 2026), were newly consolidated. Consolidated net sales came to ¥4,256 million, with operating profit of ¥659 million (operating profit margin of 15.5%). On a non-consolidated basis, net sales were ¥3,996 million (down 4.0% year on year) and operating profit was ¥696 million (down 13.2% year on year), representing lower sales and profit. While budget reductions from a large BtoC client weighed on non-consolidated results, the company's business foundation expanded through subsidiarization. Consolidated forecasts for FY2027 (ending March 2027) call for net sales of ¥4,975 million (up 16.9% year on year) and operating profit of ¥707 million (up 7.3% year on year), reflecting an expected return to higher sales and profit.

Key Products

Growth Drivers

• Continued stable growth of the internet advertising market amid ongoing marketing DX progress
• Revenue diversification through focused promotion of the BtoB domain (growing needs for generative AI and AI service utilization)
• Expanding demand for advanced marketing methods (data management) based on the vast data held by companies
• Business expansion into the inside sales domain through the subsidiarization of Sales Lab Co., Ltd.
• Business expansion into Taiwan and overseas marketing support through the subsidiarization of Asia Star Communications Co., Ltd.
• Capturing comprehensive marketing demand through collaboration and strategic partnerships with external partners
• Improved profitability through generative AI utilization and promotion of operational efficiency

Risks

• Risk of budget reductions or transaction discontinuation from large BtoC client companies (non-consolidated net sales for FY2026, ending March 2026, declined 4.0% year on year)
• Risk of dependence on major media operators such as Google and Meta (impact of algorithm changes and fee revisions)
• Rising customer acquisition costs and price competition amid intensifying competition in the internet advertising agency industry
• Risk of goodwill impairment (¥306 million) arising from consolidation (in the event Sales Lab or Asia Star Communications Co., Ltd. fail to meet performance targets)
• Risk of additional contingent consideration payments related to Asia Star Communications Co., Ltd. and overseas business operation risks (foreign exchange and country risk)
• Risk of revenue concentration in specific large clients (high dependence on existing clients, with significant impact if transactions are discontinued)
• Risk of future cost increases related to retirement benefit obligations (¥387 million; adjustment amount related to retirement benefits was ¥-33 million for the current period)
• Risk of rising financial leverage due to treasury stock acquisition (¥257 million) and long-term borrowings (¥895 million) (equity ratio of 44.4%)