FISCO Ltd.

Business Details

This segment is composed of two fields: corporate information and financial information distribution services for corporate and individual clients, and IR support/IR consulting services for listed companies. In the financial information distribution field, the company provides real-time distribution and outsourcing services, while in the IR support field it develops Sponsored Analyst Reports (FISCO Company Research Reports) as its core offering, along with Integrated Report / Annual Report Production & Distribution Service, YouTube Video Distribution & Earnings Briefing Information Distribution Service, and other services. This is the mainstay business, accounting for ¥174 million (approximately 89%) of the company's total sales of ¥194 million in the first quarter of FY2026 (ending December 2026).

Recent Overview

Strong IR consulting drove segment profit margin improvement to over 35%.

In the first quarter of FY2026 (ending December 2026) (January to March), sales in the Information Services Business were ¥174 million (¥168 million in the same period of the previous year), and segment profit was ¥61 million (¥47 million in the same period of the previous year), representing increases in both sales and profit. The IR Consulting Services field maintained steady growth with sales of ¥120 million (¥106 million in the same period of the previous year), driven by the enhancement of corporate IR activities. On the other hand, the Financial & Economic Information Distribution field declined to ¥54 million (¥62 million in the same period of the previous year) due to demand adjustments resulting from changes in the market environment. Owing in part to progress in cost structure reform, the segment profit margin improved significantly to 35.3% (28.0% in the same period of the previous year).

Key Products

Growth Drivers

• Increase in new orders for Sponsored Analyst Reports against a backdrop of listed companies enhancing and actively pursuing IR activities (an average of approximately 10 new clients acquired per month since FY2025, ended December 2025)
• Solid demand in the IR Consulting Services field supported by stable repeat orders from existing clients
• Improvement in segment profit margin through improved service mix (shift toward the high-margin IR support field) and cost efficiency
• Improved profitability through reduced outsourcing processing costs driven by in-house acquisition of financial and economic data
• Diversification of revenue sources through the launch of new services such as the Integrated Report Distribution Service and the deployment of new products such as YouTube video distribution

Risks

• Risk of continued demand adjustment in real-time services and outsourcing services for corporate clients (declining trend in sales in the Financial & Economic Information Distribution field: from ¥62 million to ¥54 million year on year)
• Risk of an imbalanced business portfolio due to concentration of management resources on IR Consulting Services
• Challenges in maintaining content quality that depend on securing and developing analyst talent
• A structure in which company-wide expenses (general and administrative expenses) are allocated such that the segment's standalone profitability does not directly translate into company-wide operating profit (adjustment amount of ¥-82 million in the first quarter of FY2026)
• Risk of impact on brand and credibility associated with the prior-period financial results restatement issue