Top Management Interview

December 2024,
Taro Hashimoto, CEO
We express our heartfelt gratitude for your continued support.
In the first half of the fiscal year ending March 31, 2025, the existing businesses in the Education and Technology segments generally performed well, contributing positively to overall performance. However, the acquisition of div Inc. (Education) and divx Inc. (Technology), which are now subsidiaries, negatively impacted income. While revenue increased, income declined compared to the previous year. Net income dropped significantly due to a decline in ordinary income and extraordinary losses from a business transfer in the Media Content segment.
We anticipate that full-year results will align with our forecasts, with the exception of net income. We have revised our net income forecast downward due to the unforeseen negative factor mentioned above, which we did not anticipate at the beginning of the fiscal year.
Talking about the progress of and outlook for each business, we are currently working to put div Inc. and divx Inc., which joined the Group in January 2024, on a growth trajectory. Although we anticipate short-term losses at these companies, we are committed to enhancing their earnings. We aim for significant growth in the Education and Technology segments.
As we discussed, we reviewed our business portfolio and transferred two businesses—entertainment news and information services and video and comic services—from the Media Content segment after evaluating strategic options. We are continuing to assess strategic options for the Broadcast segment.
Beginning this fiscal year, the Group's business operations are undergoing a significant transformation, with Education and Technology as the core business areas.
In Education, the Renaissance High School Group has experienced a steady increase in student enrollment since its establishment in 2006. As of May 1, 2024, the total number of students across its three high schools reached 9,410 compared to their total capacity of 10,220. To achieve further growth, we need to significantly increase our enrollment capacity. We are fully preparing to open the fourth online high school in April 2026.
We also plan to grow our unique composite education business by utilizing our expertise in online education, which includes our eSports course, Renaissance Junior High, Japanese language education, programming education, and reskilling education.
We plan to pay year-end dividends of 40 yen per share, up 7 yen year on year as initially planned, even though we have revised our full-year net income forecast downward. We will continue to deliver shareholder returns, while considering the balance with investments necessary for growth.
As we navigate significant changes, the entire Group will collaborate to meet our full-year earnings forecast and achieve solid results in the second half of the year. We are most grateful to our shareholders for their continuing support and understanding.