Company information
FANCOMI listed on the JASDAQ exchange on November 30, 2005. The Company listed on the first section of the Tokyo Stock Exchange on March 7, 2014. On April 4, 2022, it transferred to the Tokyo Stock Exchange Prime Market.
December 31, every year. View the IR Calendar.
For information on the current makeup of the Board of Directors, see Board Members.
Business lines
Our business can be primarily divided into two core areas, which are the CPA Solution Business and Strategic Business.
•CPA Solution Business
The operation of “A8.net,” the largest affiliate advertising service in Japan, is at the core of this business. We provide a performance-based advertising platform that acts as an intermediary between advertisers and publishers for our business model.
•Strategic Business
We are developing tools and services to address the overall diverse challenges in digital marketing.
Specific examples of this include “N-INE,” which supports the optimization of the digital marketing process, “GERA” and “YOOR,” which manage the FAN marketing platform, “WAND,” which supports influencer marketing focused on TikTok, and “FAN Communications Global,” which provides agency services supporting global companies entering the Japanese market and expanding their operations, as well as developing casual games.
See our Services for details.
We have formulated a Medium-Term Management Plan that began in FY2025 and will end in FY2027. In this plan, we have set the goal of achieving 3 billion yen in operating income for FY2027.
Assuming that our performance continues to grow in FY2025, and to ensure that we fulfill this expectation, it is important to maximize operating income for A8.net (by promoting systemization and visualization, and using AI, etc.) as well as to raise the top line of our Strategic Business.
We have also released the preliminary net sales figures each month. Looking at the year-on-year net sales figures for the Strategic Business make it especially easier to see the trend.
*Refer to net sales rather than transaction volume.
Our mainstay business “A8.net” is an affiliate service provider (ASP) that operates a performance-based platform where it acts as an intermediary between advertisers and publishers (website and SNS operators).
This is a system in which advertisers pay a fee only when the advertisement provides a result, such as when an individual “purchases a product” or “applies for a service” through the advertisement posted on the media service. This enables advertisers to implement highly cost-effective promotion activities.
Our source of revenue includes the “difference (margin)” between the total affiliate remuneration received from the advertiser and the performance-based remuneration paid to publishers, as well as the fee paid to use the system (a fixed monthly usage fee).
Our Strategic Business provides comprehensive support for digital marketing based on the achievements and expertise developed at our affiliate businesses.
Specifically, we have been focusing on areas that include optimizing the digital marketing process, supporting influencer-based promotions and FAN marketing, and developing casual games.
Revenue is generated from a stable monthly usage fee (subscription) as a stable revenue base in addition to a variable revenue in the form of consulting fees and commission fees, which achieves stable revenue and diversified growth.
Our CPA Solution Business (A8.net) is a powerful customer touchpoint having Japan’s largest advertiser base.
Leveraging this advertiser base, we will continue to conduct upselling and cross-selling activities through our diverse services in the Strategic Business to expand the scope of trade with customers.
We have taken measures by investing appropriate costs to implement countermeasures in response to the restrictions placed on Internet-based advertising.
We have invested over 300 million yen annually, including personnel expenses, to address the issues concerning expressions used on stealth advertising restrictions and advertising landing pages.
Amid the backdrop of the recent tightening of regulations, we can see that some issues do exist, such as the drop in advertising quality from major overseas platform operators along with unscrupulous advertising from some ASP.
Although it is essential for the entire industry to adopt a “self-cleaning” process, we are convinced that taking the lead in thoroughly enforcing compliance to build unwavering trust from all consumers and customers is the foundation for our company’s sustainable growth.
Furthermore, although tougher regulations have had some effect on the promotional effect by displaying “advertisements,” we have not seen any significant impact on our business following the tightening of these regulations.
AI brings some benefits for our business but there are also certain risks involved in its adoption.
First, in terms of benefits, integrating AI into our services will enable more sophisticated customer data analysis and predictive capabilities, resulting in proposals that provide greater customer satisfaction. Establishing an environment where AI can be used by every employee is expected to reduce operating costs and improve productivity.
However, the use of AI comes with significant challenges in terms of where responsibility lies concerning the risk of leaking confidential customer information used during AI learning and processing tasks and also when AI produces false outputs. It has become essential to invest continually in this technology as well as to secure advanced personnel who can use AI due to the speed at which AI technology is evolving. If we are slow to respond, our services will become obsolete and it is possible that we will lose our competitive edge in the market.
We will proceed with the strategic adoption of AI while creating a balance between managing risks and developing the personnel.
Our mainstay business CPA solution (A8.net) boasts the largest number of advertisers and publishers in Japan. This formidable network has enabled us to achieve significantly higher profitability compared to our competitors.
By combining diverse solutions from the Strategic Business with the strong customer base we have built with the CPA Solution Business, we will aim to establish a diversified revenue structure that captures revenue from growth sectors in addition to the stable revenue from existing businesses, which will result in sustainable growth.
Growth strategy
To achieve sustainable growth at our company, we consider capital and business alliances and M&A to be one of our key management strategies, and we will accelerate the creation of such opportunities.
FANCOMI is not a passive company that simply waits for an introduction from an M&A mediation company. Instead, we work backwards from our growth strategy and prioritize a direct sales approach towards companies that have strong business compatibility and the potential for clear synergy. We are also considering deepening cooperative relationships with existing partners to contribute towards enhancing mutual corporate value as a top priority.
As a specific achievement, this year we achieved a capital business alliance with two leading companies that use AI in the advertising review and creative domains. We will continue to focus even more on building strategic partnerships that will help our business grow.
In the FY2027 Medium-Term Management Plan, our top primary objective is to achieve an operating income of 3 billion yen and ROE of 10% or higher.
We are thoroughly implementing management that focuses on capital efficiency with the aim of improving sustainable corporate value and achieving returns to our stakeholders.
Also, in the Strategic Business, which is responsible for the future growth of our company, we will continue to place the highest priority on maximizing net sales to accelerate growth.
Financial information
The Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) from the beginning of the fiscal year ended December 31, 2022. Under this standard, net sales is changed to a value equivalent to the margin derived by subtracting sales commission from gross profit. There has been no significant change to the nature of our business.
There is a limit to major seasonal variation. However, in terms of a trend, there is a tendency to see an increase in overall sales during Q1. Meanwhile, during the summer months of Q3, Internet spending declines so sales tend to fall as a result of this.
FANCOMI is not limited to a specific type of advertiser or user. We deal with an extensive range of advertisers and a diverse user base. Furthermore, we are aiming to reduce any variation in performance or revenue by further expanding the range of advertisers and users.
We consider “increasing profit” and “improving capital efficiency” as important topics.
Up until now, We have prioritized increasing profits from its businesses. This is commonly referred to as a PL (profit and loss) focused management.
Now we are focusing on improving ROE as our main management goal and are also considering actions to improve capital efficiency.
We will continue to promote our business with both profit expansion and capital efficiency improvement as the two main drivers.
We have always aimed for a dividend payout ratio of around 50%.
However, due to events such as COVID-19 and the period to transform our business portfolio, we are currently maintaining the amount of dividend per share and have established a policy to gain the long-term support of all our shareholders.
After achieving the FY2025-2027 Medium-Term Management Plan, even if the dividend payout ratio returns to 50%, we are aiming to present business performance figures that will surpass the current dividend per share amount.
Year-end dividends are paid to shareholders registered in the shareholder registry as of December 31 each year. See our Dividends.
The year-end dividend is paid to shareholders of record as of the end of December each year. See our Stocks.
Stock information
100 shares.
We do not offer a shareholder benefit program.
The annual shareholders’ meeting is held in March every year. Details on the date and time of the meeting will be provided in the invitation to attend the Annual General Meeting of Shareholders.
No gifts will be provided.
Other
Please use the Inquiry Form for any inquiries.
For the inquiry type, select “Other Inquiries,” then select “Inquiries regarding stocks and IR.”
