Global Communication Planning Co., Ltd.

Business Details

A flow business that provides the payment processing systems necessary for customers to operate their own processing operations. The core product is the licensing of the payment package software "CARD CREW Series," offered in both on-premise and Payment ASP Service (Cloud-based) formats. Customers are mainly face-to-face retail businesses such as supermarkets and discount stores, with indirect sales also conducted through major system integrators. Sales of payment terminals and application development are also included in this segment, and revenue is flow-based, fluctuating with demand.

Recent Overview

Sales up 84.9% YoY on surge in terminal sales, but losses continued due to lower gross margin

Segment sales for the cumulative third quarter of FY2026 (ending June 2026) (July 2025 to March 2026) rose sharply to ¥744 million, up 84.9% year on year. Point-in-time recognized sales (mainly terminal sales) surged to ¥527 million from ¥131 million in the same period of the prior year, while contract development sales decreased. Due in part to the decline in gross margin caused by the increase in terminal sales, the segment loss narrowed to ¥60 million (compared with a loss of ¥114 million in the same period of the prior year), but the segment did not turn profitable. The full-year earnings forecast, which factors in large-scale project sales in the second half, remains unchanged.

Key Products

Growth Drivers

• Expanding demand for payment systems driven by the rising cashless payment ratio in Japan (42.8% in 2024, with a government target of 80%)
• Large-scale project sales in the Payment Integration Business are expected in the second half, raising expectations for full-year sales accumulation
• Expanded terminal lineup following the distributor agreement with Newland Payment Technology International
• Strengthened customer proposal capabilities and new project acquisition through deepening the capital and business alliance with TMN
• Expanded customer base by supporting increasingly diverse payment methods such as contactless payments

Risks

• Sales volatility risk due to the flow-based revenue structure, which depends on the presence or absence of large-scale replacement projects in contract development
• Rising cost of sales ratio accompanying increased terminal sales (margin deterioration due to a lower proportion of contract development)
• Inventory valuation risk for merchandise (payment terminals) (a ¥29 million inventory valuation loss was recorded in FY2025 ending June 2025)
• Expanding fixed cost burden due to increased R&D expenses (increase in intangible fixed assets from development of software for internal use, etc.)
• Risk of rising procurement costs for payment terminals due to foreign exchange fluctuations