Ray Corporation
4317・Standard Market・Services
Advertising Solutions Business
Advertising segment responsible for planning and production of SP (sales promotion) & event campaigns and TV commercials
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (Q1 cumulative, FY2027 ending February 2027) | ¥1,942 million | ¥1,373 million | ↑ |
| Operating profit (Q1 cumulative, FY2027 ending February 2027) | ¥91 million | ¥116 million | ↓ |
| Net sales YoY change | +41.4% | — | ↑ |
| Operating profit YoY change | -21.6% | — | ↓ |
| Net sales (full year, FY2026 ending February 2026) | ¥6,176 million | — | ↑ |
| Operating profit (full year, FY2026 ending February 2026) | ¥478 million | — | ↑ |
Business Details
A business that receives comprehensive planning orders from clients and advertising agencies and plans and produces campaigns, events, exhibitions, TV commercials, and other content. It is handled by Rey Co., Ltd. and its subsidiary Cray Co., Ltd., and consists of two divisions: the SP & Event Division and the TV Commercial Division. It is a contract-based business whose strength lies in its technical proposal capabilities through collaboration with the Technical Solutions Business, with cost control such as outsourcing being key to profit management.
Recent Overview
Net sales rose sharply, but operating profit declined as cost increases weighed on results, with SP up and TVCM sluggish
In Q1 of FY2027 (ending February 2027) (March to May 2026), net sales of the Advertising Solutions Business achieved substantial growth, reaching ¥1,942 million (up 41.4% year on year). On the other hand, operating profit declined to ¥91 million (down 21.6% year on year). The SP & Event Division trended steadily due to the recording of large-scale projects, but the TV Commercial Division saw profitability squeezed by weak orders combined with rising production costs. A rise in the cost-of-sales ratio is considered the main factor behind the decline in profit margin.
Key Products
Growth Drivers
- Continued acquisition of large-scale projects in the SP & Event Division
- Expansion of entertainment demand and increasing needs for real events
- Differentiation through technical proposal capabilities via collaboration with the Technical Solutions Business
- Expansion of Japan's total advertising expenditure (Dentsu announcement: 105.1% year on year in 2025)
- Proposals combining real and digital elements utilizing digital technologies such as AI and vertical video advertising
Risks
- Risk of profit pressure from weak orders in the TV Commercial Division and rising production costs
- Risk of sales fluctuation depending on whether large-scale exhibitions and events are held (risk of rebound decline)
- Risk of profit pressure from rising costs such as prices and labor costs
- Risk of companies cutting advertising budgets due to US trade policy and global instability
- Risk of unit price decline due to the progress of combined real and digital usage
Last updated: May 29, 2026