IID, Inc.

Business Details

Operates Web media and content across multiple genres through "iid-CMP (iid Content Marketing Platform)" and provides marketing services such as internet advertising, data & content provision, and EC site operation to client companies. Revenue is composed of four categories: internet advertising revenue, data & content provision revenue, system revenue, and publishing business revenue. This is the core segment, accounting for approximately 92% of consolidated net sales, and in July 2025 the company newly consolidated Edit Co., Ltd. as a subsidiary and absorbed Michael Co., Ltd. through merger.

Recent Overview

Both net sales and operating profit declined year on year. Internet advertising recovered, but publishing and systems weighed on results.

For the cumulative first three quarters of FY2026 (ending March 2026) (July 2025 to March 2026), CP Business net sales were ¥4,167 million (down 4.7% year on year), and segment operating profit was ¥331 million (down 34.6% year on year). Internet advertising revenue recovered, up 2.8% year on year, due to profitability improvement initiatives, while publishing business revenue contracted sharply, down 48.4% year on year, due to the effect of the partial discontinuation of the publishing business at the end of the previous fiscal year. Data & content provision revenue remained solid but growth was modest (down 2.2% year on year). The goodwill balance increased to ¥459 million following the new consolidation of Edit Co., Ltd. as a subsidiary in July 2025.

Key Products

Growth Drivers

• Recovery in internet advertising revenue (up 2.8% year on year for the cumulative first three quarters of FY2026 (ending March 2026), a recovery trend)
• Continued revenue contribution from data & content provision revenue (the largest category in the revenue composition)
• Accumulation of media and content assets through M&A (new consolidation of Edit Co., Ltd. as a subsidiary in July 2025)
• Business integration and cost efficiency through the absorption-type merger of Michael Co., Ltd. (effective July 1, 2025)
• Efforts to create new services including AI utilization and to build a diversified revenue portfolio

Risks

• High sensitivity to economic trends in the internet advertising market, making advertising revenue prone to fluctuation
• Structural contraction of publishing business revenue (down 48.4% year on year for the cumulative first three quarters of FY2026 (ending March 2026), following the partial discontinuation of the publishing business at the end of the previous fiscal year)
• Declining trend in system revenue (down 4.7% year on year for the cumulative first three quarters of FY2026 (ending March 2026))
• Goodwill balance of ¥459 million (as of the end of March 2026) carries impairment risk if the performance of acquired businesses deteriorates
• Risk of structural changes in the content and advertising markets due to the spread of AI technology
• Risk that deteriorating market conditions in key customer industries such as the automotive industry could spill over into data & content provision revenue, etc.