Aplix Corporation

Business Details

Centered on telecommunications services such as MVNO/MVNE and fiber optic collaboration services, the segment operates a diverse range of continuous subscription-type services including the AI drive recorder "AORINO," the retail media platform "BRIDGE AD," and the mobile WiFi router "THE WiFi." The consolidated subsidiary Smart Mobile Communications Co., Ltd. (SMC) is the main entity conducting the telecommunications business, and this core segment accounts for approximately 89% of the Group's revenue. In the 1Q FY2026 results, revenue declined 21.8% year-on-year, and operating profit also decreased significantly.

Recent Overview

1Q FY2026 saw revenue of ¥532 million and operating profit of ¥35 million, a substantial deterioration from the same period of the prior year

In 1Q FY2026 (January to March 2026), the Stock Business segment recorded revenue of ¥532 million (¥680 million in the same period of the prior year, down 21.8% year-on-year) and operating profit of ¥35 million (¥95 million in the same period of the prior year, down 63.6% year-on-year), representing a significant decline in both revenue and profit. Although initiatives such as expanding sales of BRIDGE AD's new lineup (BA Boost and BA Insight) and bundling "FUUDA" with AORINO Biz were pursued, the decline in telecommunications service revenue weighed on results. In addition, the share exchange with Global Cast Co., Ltd. was completed effective April 1, 2026, and preparations are proceeding toward transition to a holding company structure.

Key Products

Growth Drivers

• Expansion of the advertising distribution business through the rollout of BRIDGE AD's new lineup (BA Boost and BA Insight) and collaboration with Konan Telecommunication (Hikari Tsushinsha)
• Utilization of the nationwide sales network and creation of synergies through the share exchange with Global Cast (effective April 1, 2026)
• Strengthening of corporate sales through the bundling of the alcohol detector-linked app "FUUDA" with AORINO Biz
• Improvement in customer retention rates through expanded sales of THE WiFi and enhanced telecommunications service quality
• Expansion of the electronic money service for municipalities and businesses following completion of registration as a prepaid payment instrument (third-party type) issuer
• Clarification of the business portfolio and faster decision-making following transition to a holding company structure

Risks

• High dependence on revenue from the major client Star Service Co., Ltd. (33.6% in FY2025 ending December 2025), with increased line cancellations at that company directly affecting business performance
• Ongoing risk of a continued decline in the number of contracted users in the MVNO/MVNE business (an impairment loss of ¥113 million on goodwill has already been recorded)
• Risk of delays in launching new platform businesses, such as delays in the service launch of BRIDGE AD (an impairment loss of ¥80 million on intangible assets has already been recorded)
• Uncertainty regarding integration and realization of synergies following the share exchange with Global Cast (the timing and structure of the planned company split are still under consideration)
• Continued non-compliance with the market capitalization listing maintenance criteria (¥4 billion) of the TSE Growth Market, posing a risk of delisting
• A sharp decline in 1Q FY2026 operating margin to 6.5% (from 13.9% in the same period of the prior year), with the outlook for a recovery in profitability unclear