Rentracks CO.,LTD.

Business Details

Operates "Rentracks", an affiliate advertising service that stands between advertisers and partner site operators, managing adjustment, collection, and payment of performance-based fees. Since advertisers incur costs only upon approval of results, the service offers high cost-effectiveness. Partner sites are closed-type, featuring reach to active consumers through SEM (search engine marketing). The business covers diverse genres including finance, automobiles, beauty clinics, job placement, professional services, and real estate, and is expanding sales into new fields such as merchandise sales. For the full year of FY2026 (ending March 2026), revenue was ¥2,253 million, accounting for 50.7% of total Group revenue of ¥4,440 million, making it the core segment.

Recent Overview

Full-year FY2026 (ending March 2026) revenue rose 2.6% year on year to ¥2,253 million, a modest increase, while the share of Group revenue declined.

For the full year of FY2026 (ending March 2026), revenue in the Performance-Based Advertising Service Business was ¥2,253 million (up 102.6% year on year), and segment profit was ¥2,232 million (up 101.6% year on year), representing only modest increases in both revenue and profit. While the Used Construction Machinery Marketplace Business (up 143.7% year on year) and the Programmatic Advertising Agency Business (up 316.0% year on year) showed high growth, this segment's share of total Group revenue declined from 56.9% in the prior period to 50.7%. The company continues to focus on existing genres such as finance, automobiles, beauty clinics, job placement, professional services, and real estate, while strengthening sales efforts in new areas such as merchandise sales. Note that goodwill amortization of ¥25,000 thousand was recorded during the period, and there is no remaining unamortized balance at the end of the current consolidated fiscal year.

Key Products

Growth Drivers

• Continued focus on existing genres such as finance, automobiles, beauty clinics, job placement, professional services, and real estate
• Strengthening of advertiser sales efforts in new genres such as merchandise sales
• Expansion of the internet advertising market (2025 internet advertising media spend: 111.8% year on year)
• Expansion of the partner network through strengthened collaboration with advertising media operators
• Providing high cost-effectiveness to advertisers by maintaining the quality of closed-type partner sites

Risks

• Declining trend in gross profit margin due to intensifying competition with rival companies
• Credit risk associated with deterioration in advertisers' financial condition (allowance for doubtful accounts recognition criteria is a key accounting policy)
• Risk of delayed response to the evolution of internet advertising technology and changing customer needs
• Relatively slower growth within the Group (year-on-year growth of only +2.6%, with a declining share of Group revenue)
• Pressure on operating margin from increased SG&A expenses, including M&A-related costs and increases in shareholder benefit provisions