ENVALITH
株式会社メディアドゥ logo

MEDIA DO Co.,Ltd.

3678・Prime Market・Information & Communication

Official website
株式会社メディアドゥ logo
MEDIA DO Co.,Ltd.3678

Business

Media Do Co., Ltd. operates under the mission of "realizing a healthy creation cycle for copyrighted works," and is a comprehensive content distribution company centered on the Electronic Book Distribution Business. It possesses Japan's largest wholesale/distribution network, with relationships with over 2,200 publishers, more than 150 eBook stores, and approximately 2.6 million content files handled, supplying content to major eBook stores such as "Comic Seymour" and "Amazon Kindle." In addition to its core Electronic Book Distribution Business, the company operates the Strategic Investment Business, comprised of four businesses—Imprint, IP & Solutions, International, and FanTop—providing diverse services spanning from upstream to downstream of the publishing value chain. It functions as publishing industry infrastructure connecting publishers, eBook stores, and readers both domestically and internationally.

Business Model

The Electronic Book Distribution Business, which accounts for approximately 92% of net sales, generates commission revenue linked to royalties and similar fees by receiving content from publishers and wholesaling it to eBook stores. Major customers include NTT Solmare (26.3% of sales) and Amazon Services International (15.7% of sales). The Strategic Investment Business diversifies revenue through SaaS-type corporate contracts for the book summary service "flier," SaaS provision of DX tools for Western publishers, and operation of the NFT marketplace "FanTop," among others.

Company Strengths

The company possesses Japan's largest wholesale/distribution infrastructure, with relationships spanning over 2,200 publishers, more than 150 eBook stores, approximately 2.6 million content files handled, and over 18,000 annual campaigns managed. It maintains business relationships with nearly all publishers and eBook stores, functioning as a barrier to new market entrants.

NTT Solmare accounted for ¥26,825 million (26.3%) and Amazon Services International for ¥16,031 million (15.7%), together representing approximately 42% of net sales. With the addition of new business flow acquired in February 2024 (related to Mecha Comic), net sales for FY2025 (ended February 2025) increased 8.4% year on year.

The book summary service "Flier" achieved operating profitability in FY2025 (ended February 2025) with a cumulative total of over 1,100 corporate contracts, and listed on the TSE Growth Market in February 2025. The International Business's DX service for Western and European publishers has an extremely low churn rate of 0-3%, with net sales increasing as the number of corporate contracts accumulates.

ENVALITH's Perspective

In Q1 of FY2027 (ending March 2027), revenue increased to ¥27,074 million (up 4.1% year-on-year), but profitability deteriorated significantly, with operating profit of ¥440 million (down 32.6%), ordinary profit of ¥203 million (down 69.6%), and quarterly net profit attributable to owners of the parent of ¥129 million (down 84.2%). Non-operating expenses included ¥217 million in commission fees (related to the Seven Seas acquisition), and the sharp decline in net profit was also heavily affected by the reversal from a ¥531 million gain on the sale of shares in affiliate MyAnimeList recorded in the same period last year. It is important to understand the underlying performance excluding these one-time factors.

The Electronic Book Distribution Business posted revenue of ¥25,141 million (up 3.9% year-on-year), but segment profit remained at only ¥1,159 million (down 3.6%) due to the impact of the termination of a high-margin service, resulting in a low profit margin of 4.6%. The Strategic Investment Business posted a segment loss of ¥252 million (compared to a loss of ¥146 million in the same period last year), with the loss widening. Improvement in comic sales at Nihon Bungeisha has been delayed, and the timing for the Strategic Investment Business to turn profitable remains unclear. Improving the low-margin structure is a medium-term challenge.

The full-year earnings forecast (revenue of ¥118,000 million, operating profit of ¥2,400 million) remains unchanged, but Q1 progress rates of 22.9% for revenue and 18.3% for operating profit indicate a notable lag on the profit side. Following the Seven Seas acquisition, goodwill surged from ¥4,029 million to ¥11,377 million, and short-term borrowings expanded to ¥12,550 million, causing the equity ratio to decline from 33.4% to 27.3%. Goodwill impairment risk and the burden of debt repayment are key points of focus from a financial perspective.

Growth Strategy

Sustainable growth through strengthening the domestic eBook distribution foundation and establishing overseas expansion and a second earnings pillar

Continuing to expand transactions with new eBook stores such as "Mechacomic" (launched July 2025). Aims to expand the eBook market and increase distribution share through new system development, including an episode delivery management system, and support tailored to the needs of business partners.

Acquisition of full equity interest and consolidation completed in March 2026. Directly operates the publishing and distribution business for Japanese content (manga, etc.) in North America, building a global revenue base. In the first quarter of the current fiscal year, only the balance sheet was consolidated (profit and loss is scheduled to be reflected from the next period onward).

While sales and profit from practical books are on an improving trend, improving profitability of comics remains a challenge. Continuing efforts toward a leaner earnings structure, aiming for profitability across the Strategic Investment Business as a whole.

AIStep became a subsidiary in September 2025, and Zealox became a subsidiary in February 2026. Leveraging synergies between Flier's book summary service and AI/DX-related subsidiaries to strengthen the group earnings power of the IP & Solutions Business (Nihon Bungeisha, Flier, etc.).

Following the second year in the B3 League (2024-2025 season), the team achieved increased revenue and profit again in the 2025-2026 season. Continuing steady growth as a regional revitalization business through collaboration with government bodies and financial institutions.

Last updated: July 17, 2026