Netyear Group Corporation

Business Details

Net Year Group operates as a single-segment company engaged solely in the SIPS (Strategic Internet Professional Services) Business. Leveraging expertise in UX design and digital technology, the company provides outsourced DX promotion and full-funnel marketing support to corporations and government agencies. In FY2026 (ending March 2026), major customers included Starbucks Coffee Japan (revenue of ¥514 million), NTT DATA Corporation (¥489 million), and Mos Food Services, Inc. (¥386 million). The company provides consulting, website and content production, marketing system development and operation, and data analysis on a project basis.

Recent Overview

In FY2026 (ending March 2026), both revenue and operating profit recovered substantially, with operating profit up 301.6% year on year

In FY2026 (ending March 2026), revenue reached ¥3,672 million (up 8.7% year on year), and operating profit recovered substantially to ¥331 million (up 301.6% year on year). Progress in creating priority customers, along with deeper penetration of existing customers and acquisition of new customers, contributed to this growth. Improvement in the cost of sales ratio (from 79.7% in the prior period to 75.8% in the current period) and reduction in selling, general and administrative expenses (from ¥601 million in the prior period to ¥556 million in the current period) contributed to profit expansion. Meanwhile, the company recorded an extraordinary loss of ¥85 million for expenses related to financial strategy review aimed at enhancing medium- to long-term corporate value. Revenue from NTT DATA decreased from ¥869 million in the prior period to ¥489 million, while new major customers expanded, with Starbucks Coffee Japan contributing ¥514 million and Mos Food Services, Inc. contributing ¥386 million. For FY2027 (ending March 2027), the company forecasts revenue of ¥4,100 million (up 11.6% year on year) and operating profit of ¥350 million (up 5.5% year on year).

Key Products

Growth Drivers

• Revenue growth through deeper penetration of existing customers and acquisition of new customers (progress in the priority customer creation strategy)
• Improved profitability through reduction in the cost of sales ratio and control of selling, general and administrative expenses
• Deployment of high-value-added services through a task force incorporating generative AI into proposal activities
• Expansion of projects through strengthened collaboration with NTT DATA Corporation and NTT DATA Group companies
• Development of next-generation products integrating digital technology and generative AI through co-creation with partner companies
• Resilient DX investment appetite among domestic companies (information services industry revenue up 9.1% year on year in January 2026)
• Accelerating response to multi-channel initiatives spanning both digital and physical (e.g., store) channels

Risks

• Difficulty in securing and developing talent (intensifying competition for digital talent, rising recruitment and training costs)
• Risk of project scale reduction or termination at the customer's discretion (revenue from major customer NTT DATA declined sharply by 43.7% year on year in a past instance)
• Risk of revenue dependence on specific customers (top three customers account for approximately 38% of revenue)
• Risk of cost overruns due to inadequate project management (deteriorating profitability when utilization rates decline)
• Risk of recording extraordinary losses such as expenses related to financial strategy review (¥85 million recorded in the current period)
• Risk of client companies curbing DX investment due to geopolitical risk, financial and capital market volatility, and price increases
• Impact on the domestic economy stemming from uncertainty over U.S. trade policy