GMO Media,Inc.

Business Details

GMO Media's core segment. Comprises point-earning and game-related media, learning/education media including "Koeteco" and other learning-related businesses, and the aesthetic medicine search/booking service "KireiPass" along with the DX platform for aesthetic clinics "KireiPass Connect byGMO" and "MEDIBASE byGMO," which together constitute the aesthetic medicine-related business. Revenue is generated through two axes: advertising revenue (flow) and subscription/usage-based revenue (stock), making this the core business accounting for approximately 92% of consolidated net sales.

Recent Overview

Net sales and profit declined due to drop-off in flow revenue, while usage-based/stock revenue maintained an expansionary trend

In the Media Business for Q1 FY2026 (ending December 2026), net sales were ¥1,640 million (down 4.4% year-on-year) and operating income was ¥191 million (down 31.2% year-on-year). Flow-type advertising transaction-related revenue fell to ¥989 million (down 16.1% year-on-year) due to the drop-off of one-time revenue from body-slimming products that had performed well in the prior fiscal year, changes in search-engine-driven traffic, and fluctuations in web advertising unit prices. On the other hand, usage-based transaction-related revenue expanded to ¥588 million (up 19.6% year-on-year), with continued growth in the number of contracts for DX services for aesthetic clinics and stock-type services in the learning domain. The company is progressively strengthening AIO measures, shifting focus from web to app, and expanding its network of partner media, aiming for revenue contribution from the third quarter onward.

Key Products

Growth Drivers

• Expansion of stock revenue through the accumulation of contracts for DX services for aesthetic clinics (KireiPass Connect byGMO and MEDIBASE byGMO)
• Steady growth in contract numbers across multiple stock-type services in the learning domain (Koeteco College, Koeteco Manager, and Koeteco Study)
• Expansion of market share in the electronic medical record market for self-pay medical care through the absorption-type company split of the MEDIBASE business in May 2025
• Expansion of the partner media network through measures to increase game-charge opportunities for advertising game users and new collaborations with major media (to be launched sequentially from June 2026)
• Recovery of traffic through strengthened AIO (AI optimization) measures and a shift in focus from web-centric to app-centric deployment
• Steady growth of the "learning and aesthetic medicine" market, driven by individual reskilling demand and growing interest in the self-pay medical care domain

Risks

• Risk of declining flow revenue (advertising revenue) in the learning-related business due to search engine algorithm changes and changes in listing placements (which materialized in the current first quarter)
• Risk of fluctuation in flow revenue in the aesthetic medicine-related business due to the drop-off of one-time revenue from products such as body-slimming products
• Customer concentration risk due to sales dependence on Google Asia Pacific Pte. Ltd. (accounting for 19.9% of net sales in FY2025 (ended December 2025))
• Structural downward pressure on flow revenue due to the maturation and intensifying competition in the internet advertising market
• Risk of declining flow-type revenue in the points and advertising game-related business due to changes in the overall advertising industry environment
• Impairment risk related to goodwill and customer-related assets (recorded in connection with the acquisition of the MEDIBASE business)