Tokyo Communications Group,Inc.
7359・Growth Market・Services
Business
Tokyo Communications Group, Inc. was founded in 2015 and listed on the Tokyo Stock Exchange Mothers market (now the Growth Market) in 2020. It is an internet company comprising 23 consolidated subsidiaries and 2 equity-method affiliates. The company operates: (1) an advertising-revenue-based Media Business including free game apps and the image-generation service "Picrew"; (2) a fee-based Platform Business including phone psychic services "Denwa Uranai Charis" and "SATORI Denwa Uranai," and the fan-support app "B4ND"; and (3) other businesses including fan clubs, metaverse, and investment activities. Its main customers are smartphone users and advertisers via ad networks, with AppLovin Corporation being its largest business partner, accounting for 19.4% of net sales.
Business Model
In the Media Business, the company provides advertising space within free game apps to advertisers via ad networks, earning advertising revenue based on user clicks and other metrics. In the Platform Business, the company employs a revenue model combining usage-based charges tied to call duration in the phone psychic reading service with monthly subscription fees and support-item sales in the fan-support app "B4ND." Capital expenditure is light at ¥16 million, with personnel expenses, development costs, and advertising expenses as the main cost items.
Company Strengths
By concentrating management resources on game genres with high probability of success, the company achieved No.1 rankings on the App Store and Google Play free game charts for two titles in FY2025 (ending December 2025). The Media Business's segment profit reached ¥363 million (up 82.1% year on year), and EBITDA reached ¥414 million (up 60.0% year on year), marking a significant improvement.
The Platform Business, which includes Denwa Uranai Charis, SATORI Denwa Uranai, and Renai Sodan METHOD, recorded 285 thousand consultation sessions annually. Segment profit was ¥333 million (up 24.8% year on year) and EBITDA was ¥638 million (up 10.1% year on year), maintaining a high EBITDA margin and serving as a stable source of cash generation.
In FY2025 (ending December 2025), ordinary profit reached ¥665 million and profit attributable to owners of parent reached ¥230 million, both marking record highs since the company's founding in 2015. The recognition of ¥529 million in gain on sale of investment securities also contributed to this result, and the company revised its full-year earnings forecast upward a total of four times.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal periods, performance peaked in FY2021 (net sales of ¥4,732 million, operating profit of ¥465 million), followed by three consecutive years of operating losses from FY2022 through FY2024. In FY2025, the company returned to profitability with net sales of ¥6,219 million and operating profit of ¥196 million, marking its highest profit since founding. In Q1 FY2026, net sales were ¥1,596 million (up 2.4% year-on-year) and operating profit was ¥56 million (up 0.6% year-on-year), indicating modest growth in the core business. Ordinary income of ¥83 million (up 103.6% year-on-year) was primarily driven by a gain of ¥46 million on the sale of investment securities. As an external factor, the internet advertising market continued to provide a tailwind, growing 10.8% year-on-year in 2025, but Media Business segment profit fell 4.4% year-on-year, reflecting the challenging competitive environment.
Growth Strategy
Organic growth of the existing three businesses combined with the independent segmentation of the Fan Business, driving multi-axis growth
Promoting a co-creation development model with external partners, concentrating investment in game genres with high probability of success while streamlining development and operating costs. Multiple titles achieved top rankings as early as Q1 FY2026, and the number of smartphone apps in operation was maintained at 240.
Advancing the sophistication and efficiency of business processes through the use of generative AI, aiming to optimize operating costs and improve service quality. "Renai Sodan METHOD" has renewed its record for highest monthly net sales, with revenue diversification progressing through multiple brands.
In light of its growing quantitative significance, the business was promoted to an independent reporting segment starting in Q1 FY2026. "B4ND" has seen an increasing trend in membership for its flagship artists due to strengthened promotional measures. The business has maintained profitability for six consecutive quarters, with net sales up 27.3% year-on-year, significantly exceeding plan.
In March 2026, the company refinanced existing borrowings related to the acquisition of subsidiary shares, significantly reducing short-term interest-bearing debt. The difference against cash and deposits turned positive at ¥360 million. Through disciplined selection and concentration of investments, the company continues to improve its financial structure by generating stable cash flow from its core businesses.
Last updated: July 17, 2026