ItoKuro Inc.

Business Details

Under the mission of "Providing education that enriches everyone's life," the company cross-operates domain-specialized portal sites spanning the cram school/prep school domain (JukuNavi), the private education domain (Kodomo Booster), and the school education domain (Minna no Gakko Joho). It aims to enhance brand recognition and expand its customer base through continuous content enrichment and improved usability. Backed by the continuing shift of advertising budgets to the web in the education industry, the company provides online customer acquisition support services.

Recent Overview

Net sales declined 12.4% year-on-year, but cost reductions drove a significant profit increase, progressing as planned

In H1 FY2026 (November 2025 to April 2026, ending March 2026), net sales were ¥1,695 million (down 12.4% year-on-year), continuing the decline. However, selling, general and administrative expenses were compressed to ¥1,268 million (down ¥284 million year-on-year), resulting in a significant increase in profits: operating profit of ¥243 million (up 30.0% year-on-year), ordinary profit of ¥302 million (up 29.8% year-on-year), and interim net profit of ¥185 million (up 57.8% year-on-year). Despite continued rises in advertising unit prices in the cram school portal site domain, all indicators progressed as planned. The full-year earnings forecast (net sales of ¥3,000 million to ¥3,400 million, operating profit of ¥400 million) remains unchanged.

Key Products

Growth Drivers

• Significant improvement in operating margin due to reduction of selling, general and administrative expenses (¥1,268 million in the current interim period, down ¥284 million year-on-year)
• Derivative services such as "Minna no Senmongakko Joho" and "Igakubu Yobiko Guide" grew throughout the full year, contributing to underpinning sales
• Continued shift of advertising budgets to the web in the education industry increased the proportion of advertising placed on internet media
• Non-operating income such as interest received and interest on securities expanded to ¥59 million (up 28% year-on-year), boosting ordinary profit
• Accumulation of neutral content through the stored reviews model builds differentiation and competitive advantage over other sites
• The performance-based fee model provides clear cost-effectiveness for client companies, contributing to maintaining and expanding the customer base

Risks

• Continued rise in advertising unit prices in the cram school portal site domain is putting downward pressure on JukuNavi's sales and visitor numbers
• Net sales trend of decline continues, down 12.4% year-on-year, with the full-year forecast also projecting a decline of up to 18.2% year-on-year
• JukuNavi's annual visitor numbers have been on a continuous downward trend since peaking at 25.24 million in FY2019 (ending March 2019)
• High dependence on Try Group Co., Ltd. for sales at 11.1% (FY2025, ending March 2025), presenting a customer concentration risk
• Risk of reduced customer acquisition capability due to intensifying competition in the internet advertising market and changes to search engine algorithms
• Maintaining and strengthening website system security management remains an ongoing challenge
• Cash flow from operating activities deteriorated to an outflow of ¥45 million in the current interim period (compared to an inflow of ¥333 million in the same period of the previous year)