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

Business Details

A stock-type business segment that provides cloud-based Payment ASP Service (Cloud-based), Maintenance & Operation Service, the Multi-Payment Terminal Subscription Service "SAKURA," Payment Agency Service, and other services to card company member merchants. Main customers are mid-to-large distribution businesses such as supermarkets and discount stores. The segment has a stable revenue structure centered on fixed monthly sales and processing fee sales. A proprietary dedicated data center (GDC) provides stable operation 24 hours a day, 365 days a year. In the cumulative third quarter of FY2026 (ending June 2026), it accounted for ¥750 million of total company sales of ¥1,494 million.

Recent Overview

Sales down 14.5% and profit down 54.9% YoY, mainly due to the falling-off of a large-scale subscription project

Payment Service Business sales for the cumulative third quarter of FY2026 (ending June 2026) were ¥750 million (down 14.5% year on year), with segment operating profit of ¥11 million (down 54.9% year on year). This reflects a decrease in related sales and cost of sales due to the reversal of the impact of a large-scale subscription project recorded in the same period of the prior year. Meanwhile, stock sales from the Payment ASP Service, Maintenance & Operation Service, and other services remained solid, despite the termination of some services. Of the subscription services, the portion related to continuous service provision is recorded as stock sales, while the portion related to leased payment terminals is recorded at the lease commencement date in accordance with lease accounting standards.

Key Products

Growth Drivers

• Continued expansion of demand for the Payment ASP Service driven by the rising cashless payment ratio (42.8% in 2024, with a government target of 80%)
• Stock-conversion of existing customers by guiding them toward the Payment ASP Service when replacing on-premise systems
• Expanded market share through increased sales of the Multi-Payment Terminal Subscription Service "SAKURA"
• Strengthened customer proposal capabilities and acquisition of new customers through deepening the capital and business alliance with TMN
• Expanded transaction fee sales through direct connection to VISANET (connection to an international brand payment network)
• Improved unit prices from the revision of fees for some services (achieved in FY2025 ending June 2025)

Risks

• Risk of declining profit margin due to changes in sales composition, such as an increase in lower-margin e-money users relative to higher-margin ASP users
• Risk of short-term profit pressure from the advance recognition of payment terminal costs in subscription projects
• Risk of decreased existing stock sales due to termination or contract changes for some services (some service terminations also occurred in the current quarter)
• Risk of price competition and customer attrition from accelerating entry by competing businesses
• Risk of rising payment terminal procurement costs due to foreign exchange fluctuations
• Risk of security incidents such as information leaks or cyberattacks (being addressed through PCI DSS and ISO27001 certification)