AViC Co., Ltd.

Business Details

The only business segment operated by AViC Group Co., Ltd. Its core offerings are two services: performance-based advertising (search-linked, display, in-feed) utilizing Google and other platforms, and SEO Consulting Service. The business operates through two channels—direct transactions with clients and transactions via major advertising agencies—providing high-quality services based on proprietary in-house tools and a PDCA cycle. In January 2026, the company made Spica Co., Ltd. (TikTok LIVE Liver Management Business) a consolidated subsidiary, expanding into the creator economy field.

Recent Overview

Interim net sales up 68.8%; Spica consolidation completed; full-year forecast revised upward

In the first half of FY2026 (ending September 2026, covering October 2025 to March 2026), net sales reached ¥1,856 million (up 68.8% year-on-year), and operating profit reached ¥475 million (up 39.4% year-on-year), achieving significant increases in both revenue and profit. On January 29, 2026, the company made Spica Co., Ltd. (TikTok LIVE Liver Management) a wholly-owned subsidiary for ¥1,500 million, generating goodwill of ¥1,183 million (amortized evenly over 11 years). To finance the acquisition, the company took out a long-term loan of ¥1,500 million from Mizuho Bank, increasing interest-bearing debt (long-term borrowings balance of ¥2,023 million). The allocation of acquisition cost has not yet been finalized. Reflecting the strong results, the full-year consolidated earnings forecast was revised upward to net sales of ¥4,008 million and operating profit of ¥1,127 million.

Key Products

Growth Drivers

• Expansion of the internet advertising market driven by the continuing DX trend (market size of ¥4,045.9 billion in 2025, according to Dentsu)
• Strengthened acquisition of enterprise clients (utilizing the joint venture with ADK Marketing Solutions)
• Productivity improvement and service quality differentiation through proprietary in-house tools and AI utilization
• Strengthened supply capacity through active recruitment and training of personnel (enablement project)
• Entry into the TikTok LIVE Liver Management Business (creator economy field) through the consolidation of Spica Co., Ltd.
• Expansion into the live commerce field by leveraging the affinity between Spica's roster of livers and the existing video marketing business

Risks

• Impact on advertising effectiveness and SEO measures from algorithm changes by major media platforms (Google, etc.)
• Difficulty in securing and developing digital marketing talent (explicitly identified as a factor that could significantly impact business performance)
• Increase in interest-bearing debt associated with the Spica acquisition (long-term borrowings balance of ¥2,023 million) and risk of breaching financial covenants (maintaining net assets at 75% and prohibition of operating losses for two consecutive periods)
• Undetermined goodwill (¥1,183 million, amortized evenly over 11 years) and acquisition cost allocation for Spica, creating uncertainty regarding future amortization burden and additional costs
• Risk of changes to Spica's acquisition cost due to contingent consideration (additional payments of up to ¥300 million)
• Revenue dependence on a specific client (ADK Digital Communications Co., Ltd.), accounting for 10.8% of net sales in FY2025 (ending September 2025)
• Risk of Spica's dependence on the TikTok LIVE platform (platform policy changes, regulations, etc.)
• Deterioration in financial soundness due to a decline in the equity ratio (from 58.5% at the end of FY2025, ending September 2025, to 45.6% in the first half of FY2026, ending September 2026)