THECOO Inc.

Business Details

Provides and operates "Fanicon," a fully membership-based, fully paid fan community platform that matches artists, influencers, talents, and others (referred to as "Icons") with fans. Revenue consists of subscription-based monthly fees (stock revenue) and point-based charge flow revenue. The platform features multiple functions including live streaming, group chat, e-commerce, and ticketing, promoting bidirectional communication between Icons and fans. Positioned as a growth driver for the Company, this segment accounted for approximately 75% of consolidated sales in the first quarter of FY2026 (ending December 2026).

Recent Overview

Sales up 25.1% year-on-year; segment profit sharply improved, up 250.1% year-on-year

In the first quarter of FY2026 (ending December 2026) (January to March 2026), sales in the Fan Business Platform Business were ¥1,066 million (up 25.1% year-on-year), and segment profit was ¥144 million (up 250.1% year-on-year). Continued acquisition of new Icons and growth in point-based charge revenue contributed to the increase in sales. The Icon churn rate remained at a low level, continuing the trend from the previous fiscal year, due to strengthened customer success efforts. This segment accounted for approximately 75% of consolidated sales.

Key Products

Growth Drivers

• Continued increase in paying users (fan count) through acquisition of new Icons
• Improvement in subscription monthly ARPU through the introduction of premium plans, etc.
• Expansion of point purchases (flow revenue) leveraging seasonal events and individual Icon events
• Maintaining a low Icon churn rate through strengthened customer success efforts
• Global expansion through increased community establishment by overseas Icons, including in South Korea
• Acceleration of acquisition of major Icons through partnerships with partner companies
• Capturing new demand accompanying the expansion of the virtual artist market, including VTubers and 2.5-dimensional IP

Risks

• Risk of slowing fan count growth if acquisition of new Icons stalls
• Risk of customer attrition due to the emergence of competing fan community platforms
• Risk of community cancellations due to Icons suspending activities or retiring
• Risk of profit margin pressure from rising costs such as infrastructure expansion and increased development expenses
• Risk of information leakage due to inadequate personal information management systems (given the large volume of personal information held on fans and Icons)
• Risk of delays in establishing local subsidiaries and selecting partners in global expansion (particularly in South Korea)