ENVALITH
ネットイヤーグループ株式会社 logo

Netyear Group Corporation

3622・Growth Market・Information & Communication

Official website
ネットイヤーグループ株式会社 logo
Netyear Group Corporation3622

Business

Net Year Group is a digital marketing specialist company founded in 1999, operating the SIPS (Strategic Internet Professional Services) Business as a single segment. Centered on a "thorough user perspective" and "excellent design thinking," the company interlinks four domains—service design, digital marketing support, digital product development, and social impact development—to comprehensively support full-funnel marketing spanning consumer awareness through purchase and fan conversion. Major clients include Starbucks Coffee Japan, NTT DATA, and Mos Food Services, among other large corporations and government agencies. Revenue for FY2026 (ending March 2026) was ¥3,672 million. In April 2026, the company changed its market listing from the TSE Growth Market to the Standard Market.

Business Model

A contract-based business model in which the company receives requests from client companies and provides consulting, web content production, marketing system development, data analysis, and other services on a project basis. Revenue consists of gross profit calculated by deducting personnel costs and outsourcing costs from project sales, with personnel utilization rates and appropriate project management determining profitability. The majority of fixed costs are personnel costs, and stable order intake and maintaining utilization rates are key to generating profit.

Company Strengths

Under the capital and business alliance concluded in February 2019, NTT DATA holds 48.51% of issued shares. Leveraging NTT DATA's customer base and technological capabilities, the company has achieved results in expanding projects and acquiring new clients, with sales to NTT DATA accounting for 25.7% of total sales in FY2025 (ended March 2025). The company has also established a system for providing digital solutions that meet advanced security requirements through the business alliance between NTT DATA and OpenAI.

Since its founding in 1999, the company has accumulated expertise in UX design and digital marketing. It has a system in which four domains—service design, digital marketing support, digital product development, and social impact development—work in mutual coordination, enabling seamless support from strategy formulation through implementation and operation. Continued business with major brands such as Starbucks Coffee Japan (14.0% of sales) and Mos Food Services (10.5% of sales) underpins this capability.

As of the end of FY2026 (ending March 2026), net assets stood at ¥2,773 million, with an equity ratio of 80.9%. The company held cash and cash equivalents of ¥2,247 million and maintains debt-free management with zero interest-bearing liabilities. Working capital is funded internally, and liquidity is also secured through an overdraft agreement with a financial institution. Securing capacity for future M&A and investments through retained earnings can be considered a financial strength.

ENVALITH's Perspective

Net sales were ¥3,672 million (up 8.7% year on year), and operating profit was ¥331 million (up 301.6% year on year), marking a sharp recovery in performance. The cost of sales ratio improved from 79.8% in the prior period to 75.8%, while selling, general and administrative expenses were also reduced from ¥601 million to ¥556 million. As an external factor, the expansion of the information services market (up 9.1% year on year in January 2026) served as a tailwind. However, due to the recording of an extraordinary loss of ¥85 million (expenses related to financial strategy review), net income for the period was limited to ¥173 million. The content of this extraordinary loss and the future direction of financial strategy warrant continued attention.

The top three customers for the current period (Starbucks Coffee Japan at ¥514 million, NTT DATA at ¥489 million, and Mos Food Services at ¥386 million) together accounted for approximately 38% of total net sales. In the prior period, NTT DATA was the largest customer (¥869 million), but this decreased significantly to ¥489 million in the current period, indicating that fluctuations in dependence on the parent company have a substantial impact on performance. It will be necessary to continuously monitor progress in customer diversification and the effectiveness of the strategy to cultivate key customers.

The earnings forecast for FY2027 (ending March 2027) calls for net sales of ¥4,100 million (up 11.6% year on year), operating profit of ¥350 million (up 5.5% year on year), and net income of ¥243 million (up 39.8% year on year). The company anticipates increased costs for strengthening human resources, including recruitment expenses, training expenses, and expenses related to transitioning personnel toward generative AI skills, resulting in operating profit growth that lags behind sales growth. The high mobility of digital talent and intensifying competition for hiring are explicitly identified as external environmental risks, and success in securing talent will be key to achieving the earnings forecast.

Growth Strategy

Aiming for revenue of ¥4,100 million through generative AI utilization, strengthened collaboration with the NTT DATA Group, and multi-channel expansion

Launched a task force to incorporate generative AI into sales activities, deploying high-value-added services to solve issues for client companies and government institutions. In parallel, the company is also promoting internal productivity improvements, aiming to expand the scope of service offerings and improve profitability.

Strengthening sales-side collaboration with parent company NTT DATA and NTT DATA Group companies, expanding the customer base through comprehensive provision of multiple solutions. In the current period, revenue from NTT DATA declined year on year, and recovery through deeper collaboration is an issue to be addressed.

Leveraging CX expertise to accelerate multi-channel support spanning both digital and physical (e.g., stores) channels. Deepening relationships with existing customers such as Starbucks Coffee Japan (¥462 million in the previous period → ¥514 million in the current period) is progressing, and the strategy of cultivating key customers is showing certain results.

Treating the securing and development of digital talent as a top-priority issue through enhanced recruiting activities and promotion of a proprietary training program. For FY2027 (ending March 2027), the company expects increases in recruiting costs, training costs, and costs for transitioning personnel to generative AI roles, with a focus on accelerating talent development and improving engagement.

Last updated: July 19, 2026