ENVALITH
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Broadmedia Corporation

4347・Standard Market・Services

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ブロードメディア株式会社 logo
Broadmedia Corporation4347

Business

Broadmedia Corporation is a diversified business group listed on the Standard Market of the Tokyo Stock Exchange. Its two main pillars are the Education segment (the correspondence-based Renaissance High School Group, Japanese language education, and AI/programming education) and the Technology segment (Akamai CDN & security services, DX & System Development), which together account for approximately 77% of group revenue of ¥15,795 million. In addition, the company operates Studio Production, which handles Japanese-language localization of overseas video content, and the Other segment, which covers esports and game publishing. At the end of FY2026 (ending March 2026), the company plans to transfer its Broadcasting segment (Tsuri Vision), shifting toward a structure that concentrates management resources on education, technology, and AI.

Business Model

In the Education segment, the main revenue sources are tuition fees and enrollment support payments for the correspondence high school, course fees and corporate training fees for the programming school, and course fees for Japanese language education. In the Technology segment, the core pillars are domestic resale of Akamai's CDN and security services (revenue scale of ¥4,522 million) and outsourced income from DX & System Development. Studio Production consists of order-based production revenue from video localization, while Other comprises esports licensing and sponsorship income. The company continues to improve its revenue structure through business divestitures and selective focus.

Company Strengths

In FY2026 (ending March 2026), the Education segment posted sales of ¥5,507 million (operating margin of 17.6%) and the Technology segment posted sales of ¥6,578 million (operating margin of 13.8%), with both segments achieving high profitability side by side. The company has a business structure that avoids dependence on a single business while creating synergies between segments through AI education and DX development.

The resale agreement with Akamai Technologies was signed in 2003 and is a long-term contract that automatically renews every five years; Akamai Service sales in FY2026 (ending March 2026) were ¥4,522 million. Through continued expansion of services to existing customers and acquisition of new customers, the Technology segment achieved a 12.4% increase in sales and a 38.5% increase in profit year on year, underpinned by a stable customer base and a proven track record of sales expansion.

The company operates three schools under the Renaissance High School Group—Toyota Campus and Osaka Campus—both of which have achieved full enrollment. It offers distinctive optional courses such as esports and programming, and its strength lies in the ability to provide individualized support leveraging its online learning system. In FY2026 (ending March 2026), the Education segment achieved operating profit of ¥966 million, up 14.9% year on year.

ENVALITH's Perspective

The company's forecast for FY2027 (ending March 2026) calls for net sales of ¥14,500 million (down 8.2% year on year) and operating profit of ¥1,100 million (up 3.5% year on year). The main factor is the disappearance of ¥2,243 million in net sales and ¥114 million in operating profit due to the termination of the Broadcasting segment, a structure in which growth in the remaining segments is expected to offset this loss. Whether the company can maintain profit growth despite declining revenue will be the key point of assessment. The existing Education business (correspondence high schools) is expected to see lower profits due to rising personnel costs and inflation, making the full-year profitability of div Co., Ltd. and revenue growth in the Technology segment the keys to achieving the plan.

Profit attributable to owners of parent for FY2026 (ending March 2026) is expected to increase substantially to ¥782 million (up 133.3% year on year), but this is due to a mix of temporary and structural factors: (1) extraordinary losses shrinking from ¥315 million to ¥120 million (elimination of the prior year's impairment losses and inventory valuation losses), (2) elimination of the operating loss from the transfer of the Media Content business, and (3) the return to profitability of Studio Production. The operating profit margin improved to 6.7%, but achieving the target level of 10% will require further revenue expansion in Education and Technology, and confirmation of sustainable profit growth is needed.

In the correspondence high school business, the core of the Education segment, while the Osaka and Toyota campuses have reached full enrollment, the number of enrolled students at the Daigo campus has been trending below the previous year, and continued difficulty is expected in FY2027 (ending March 2026) as well. In addition, the balance of advance payments received has decreased substantially from ¥2,344 million to ¥1,764 million, and this warrants close attention as a leading indicator of future revenue. As an external factor, the declining population of high school-age students due to the falling birthrate is a long-term headwind, while the expanding correspondence high school market is a tailwind. Whether the company succeeds in expanding commuting course options and developing new campuses to secure student numbers will determine medium-term performance.

Growth Strategy

Sophistication of the earnings structure through strengthening the two pillars of Education and Technology while divesting unprofitable businesses

The company expects continued revenue growth in the Education segment in FY2027 (ending March 2026), driven by an increase in students attending in-person courses (Osaka and Toyota campuses are at capacity), the turnaround of the Daigo campus, expansion of enrollment at Renaissance Japanese Language Institute, and continued strong performance of Tech Camp AI College and corporate training. Full-year profitability at div, Inc. is an additional driver of earnings improvement.

Akamai Service has performed well in providing services to both existing and new customers, achieving ¥4,522 million in FY2026 (ending March 2026). With the continued stabilization of divx, Inc.'s profitability and an increase in contracted development at System Design Development Co., Ltd., the company expects the Technology segment to achieve both higher revenue and profit in FY2027 (ending March 2026) as well. The spread of 5G and expanding use of AI serve as favorable external tailwinds.

Following the transfer of the Media Content business in the previous fiscal year, the company transferred all shares of Tsuri Vision Co., Ltd. at the end of FY2026 (ending March 2026), ending the Broadcasting segment. The equity ratio rose from 41.0% to 51.9%, establishing a framework that allows management resources to be concentrated on growth segments. The removal of Garapon Inc. from the equity method has also been completed.

Studio Production turned profitable in FY2026 (ending March 2026), achieving operating profit of ¥28 million. This was driven by an improved cost structure following impairment processing in the previous fiscal year and a recovery in orders received. The "Other" segment (esports and Game Publishing Business) recorded a loss of ¥53 million in FY2026 (ending March 2026), but the company expects it to achieve full-year profitability in FY2027 (ending March 2026).

Last updated: July 19, 2026