Brangista Inc.

Business Details

Provides "Axel Japan," a corporate promotion support project that allows companies to use photos and videos of well-known celebrities with no initial cost under a flat monthly fee model. Main customers are private companies and local governments, with usage centered on recruitment activities and product/service promotion. Primary revenue sources are monthly usage fees from contracted companies (renewal revenue) and new contract revenue. Through the expansion of new sales approaches centered on strengthening partnerships with financial institutions, the segment achieved record-high results for both the first half and the second quarter.

Recent Overview

Record-high results achieved in both the first half and second quarter, with revenue and profit up more than 10% year on year

In 1H FY2026 (ending March 2026), the Promotion Support Business posted revenue of ¥1,112 million (up 10.3% year on year) and segment profit of ¥473 million (up 12.4% year on year), marking record highs. In particular, the second quarter saw rapid expansion, with revenue up 43.2% and operating profit up 130.0% versus the first quarter. This reflected the gradual materialization of results from new contracts acquired through referrals from financial institution partners, combined with seasonal improvements in advertising efficiency and steady growth in renewal revenue. The company is also expanding proposals to local governments for using "Axel Japan" on furusato nozei (hometown tax) sites, increasing the number of proposals aimed at securing usage starts in the second half.

Key Products

Growth Drivers

• Efficient new sales approaches targeting decision-makers through expanded sales partnerships with regional financial institutions (results materializing progressively)
• Expansion of a stable revenue base driven by steady growth in renewal revenue
• Enhanced customer retention and results through strengthened hands-on customer success support
• Expansion of proposals for using "Axel Japan" on local governments' furusato nozei sites (increasing number of proposals aimed at second-half usage starts)
• Utilization of the financial institution network through the capital and business alliance with SBI Holdings

Risks

• Risk that new revenue recognition may be temporarily delayed due to the time required to establish operational workflows with financial institution partners
• Risk of margin pressure from increased performance-linked compensation to ambassadors as the number of client companies grows
• Risk of timing gaps in revenue recognition due to adjustments in customers' usage start timing (quarter-to-quarter volatility risk)
• Seasonal volatility risk arising from the concentration of local governments' budget execution (seasonality in tie-up advertising revenue)
• Risk of short-term cost increases due to upfront investment (human capital and strengthening of financial institution partnerships)