Lovable Marketing Group, inc.

Business Details

The Group's only segment, promoting "Lovable Marketing." Built around three solutions (MOS) — SNS Account Management Support, SaaS-type operation support tools, and human resource education — it comprehensively expands into DX Support (Web Production / Ad Operation), influencer marketing, and inbound promotion. Transitioned to a single segment structure from FY2025 (ending October 2025). Maintains a customer base centered on major corporations, providing integrated support from strategy design through effectiveness verification.

Recent Overview

Executed two M&A deals during the 5-month accounting period, and also completed a third-party share allotment

In January 2026, L-Marke Inc. (LINE marketing support; acquisition cost ¥180 million, goodwill ¥149 million, amortized equally over 7 years) was made a subsidiary, followed by Rice Curry LS Inc. (SNS marketing support; acquisition cost ¥700 million, goodwill ¥507 million, provisional value) in March 2026. Since the deemed acquisition date for Rice Curry LS was set as March 31, 2026, only its balance sheet was consolidated for the current period. Financial foundations were strengthened through a third-party share allotment (¥493 million) to the AI Fusion Capital Group. For FY2027 (ending March 2027), revenue of ¥3,537 million and adjusted EBITDA of ¥400 million are forecast, but forecasts below operating profit are undisclosed due to uncertainty related to M&A expenses.

Key Products

Growth Drivers

• Continued expansion of the internet advertising market (up 10.8% year-on-year in 2025)
• Increase in SNS users and expansion of companies utilizing SNS
• Non-continuous growth through M&A (completion of L-Marke and Rice Curry LS subsidiarization)
• Incorporation of Rice Curry LS's major corporate customer base and influencer marketing expertise
• Expansion of LINE marketing solutions and cross-selling to existing customers through L-Marke
• Improved operational productivity across the group through AI tools and the DX Promotion Office
• Building a revenue model for Inbound Promotion (Talon Japan) and leveraging the Thai influencer network
• Expansion of support scope through new service offerings such as Amazon ad operation support and AI utilization support services
• Securing growth investment funds through third-party share allotment (¥493 million)

Risks

• Significant increase in goodwill due to active M&A activity (period-end balance of ¥786 million, of which ¥507 million from Rice Curry LS is a provisional value) and future impairment risk
• Increase in borrowings (long-term borrowings balance of ¥811 million) and rising financial leverage due to the Rice Curry LS acquisition (¥700 million)
• Risk of additional payments due to contingent acquisition consideration for Rice Curry LS (up to ¥156 million)
• High uncertainty regarding M&A impact, as forecasts for operating profit, ordinary profit, and net profit for FY2027 (ending March 2027) are undisclosed
• Business impact from algorithm and specification changes on SNS platforms
• Intensifying competition for digital marketing talent and rising personnel costs
• Risk of client companies reducing marketing budgets due to yen depreciation, price increases, and geopolitical risks (Taiwan situation, Ukraine, Middle East, US trade policy)
• Difficulty in performance comparison due to the transitional period (5 months) resulting from the change in fiscal year end (from end of October to end of March)