ITmedia Inc. (Tokyo Stock Exchange Prime: 2148) Q1 FY2027 Earnings Deep Dive Report

This report provides a detailed analysis of the Q1 FY2027 (period ending March 2027) financial results for ITmedia Inc. The company achieved record-high quarterly revenue and significant year-on-year profit growth. This momentum was primarily driven by the M&A impact within its core BtoB media business, coupled with a sharp improvement in the profitability of its BtoC media business.

This report comprehensively covers the company's performance summary, segment trends, key topics, business structure, and full-year forecasts, as well as its mid-to-long-term growth strategy, based on 10 key takeaways identified from the disclosure materials.

---

1. Analysis of 10 Key Earnings Topics

The following 10 points summarize the essential takeaways for investors from the latest earnings disclosure:

1. Record-High Q1 Revenue : Revenue reached 2,240 million yen (+17.5% YoY) , marking the highest Q1 performance in company history.
2. Rapid Improvement in Profit Margins : Operating profit surged to 535 million yen (+49.8% YoY) , and quarterly profit reached 348 million yen (+43.8% YoY) .
3. Introduction of "Adjusted EBITDA" : To accurately reflect core business profitability by excluding one-time expenses related to M&A, the company introduced Adjusted EBITDA (563 million yen, +48.0% YoY) as a new key metric.
4. BtoB Media Business Recovery and Steady Growth : BtoB revenue reached 1,713 million yen (+9.9% YoY) , signaling that the core segment has entered a recovery and growth phase.
5. Explosive Growth in BtoC Media Business : BtoC revenue grew to 526 million yen (+51.3% YoY) , with Adjusted EBITDA soaring to 227 million yen (+234.8% YoY) .
6. M&A Contribution (Majisemi) : Majisemi Co., Ltd., acquired as a wholly-owned subsidiary in April 2026, contributed 160 million yen in revenue and 182 clients .
7. Continued Growth of "Hatchu Navi" : The number of member companies for the system development matching service "Hatchu Navi" surpassed 9,000 , steadily expanding the customer base.
8. ITmedia ID Members Exceed 2 Million : The membership base for reader services reached 2 million , further enhancing the value of first-party data.
9. Full-Year Forecast: First Profit Growth in 4 Years : The company projects record-high full-year revenue of 9,200 million yen (+10.7% YoY) and operating profit of 2,000 million yen (+13.3% YoY) .
10. Progress Toward Mid-to-Long Term Target (FY29 EPS 140 Yen) : The company clarified its strategy to achieve mid-term profit growth through a transformation into a data-driven media entity in the AI era.

---

2. Q1 Consolidated Financial Highlights and the New "Adjusted EBITDA" Metric

In Q1 FY2027, ITmedia delivered excellent results with both revenue and profit growth . Alongside the significant revenue upside, all profit categories showed high levels of growth compared to the same period last year.

[Why this slide is important]

Slide 4 is the foundational document providing an overview of consolidated performance and segment-specific details. It demonstrates that all key financial metrics , from revenue to profit tiers and EPS, have shifted significantly into positive territory, underscoring the strength of the company's momentum.

[Financial Data Breakdown]

• Revenue : 2,240 million yen ( +333 million yen / +17.5% YoY )
• Adjusted EBITDA : 563 million yen ( +182 million yen / +48.0% YoY ), Margin 25.2% (+5.2pt)
• Operating Profit : 535 million yen ( +178 million yen / +49.8% YoY )
• Quarterly Profit : 348 million yen ( +106 million yen / +43.8% YoY )
• Earnings Per Share (EPS) : 17.90 yen ( +5.41 yen / +43.3% YoY )

Furthermore, the company introduced "Adjusted EBITDA" (EBITDA + M&A-related expenses) as a new key KPI. As the company pursues M&A for non-linear growth, this is a rational metric to evaluate the "cash-generating capability of the core business" even when one-time advisory or temporary expenses are incurred.

---

3. Segment Trends: BtoB Stability and BtoC Profit Explosion

We delve into the two business segments that supported the strong consolidated performance.

(1) BtoB Media Business (Approx. 80% of Revenue)

Revenue was 1,713 million yen (+9.9% YoY) , and Adjusted EBITDA was 336 million yen (+7.4% YoY) . Despite some slowdowns among certain large clients, the segment is showing a solid recovery.

• Lead Generation Revenue (BtoB-LG) : 721 million yen (+0.5% YoY). While "Hatchu Navi" drove growth, traditional lead generation saw slightly sluggish performance.
• Digital Event Revenue (BtoB-DE) : 511 million yen (+31.6% YoY). The contribution from the newly consolidated Majisemi caused the number of clients to surge to 319 (+117.0% YoY).
• Reserved Advertising & Brand Solutions (BtoB-AD) : 480 million yen (+6.3% YoY). Interest in AI platforms is rising, showing signs of increased activity.

(2) BtoC Media Business (Approx. 20% of Revenue)

Revenue was 526 million yen (+51.3% YoY) , Adjusted EBITDA was 227 million yen (+234.8% YoY) , and the margin reached 43.2% (compared to 19.5% in the same period last year) , marking a phenomenal improvement.

• While average monthly PV remained flat at 286 million (-0.8% YoY), CPM (Cost Per Mille) surged to 612 yen (from 401 yen, +52.5% YoY) .
• Optimization of UI and content organization, combined with productivity gains from a CMS (Content Management System) overhaul, resulted in a significant jump in profit efficiency, compounded by temporary Q1 demand.

---

4. Business Structure and Revenue Model Overview

Understanding the overall service structure is essential to grasp how the company deploys its media portfolio and generates revenue.

[Why this slide is important]

Slide 17 is a map organizing ITmedia's diverse web media properties, their revenue composition, and business models. It visually demonstrates a structure that balances earnings across a portfolio of BtoB and BtoC assets , rather than relying on a single medium.

[Business Model Characteristics]

• BtoB Media Business (80% of revenue) :
  • IT & Business Field : "ITmedia NEWS," "@IT," "Keyman's Net," "ITmedia AI+," etc.
  • Industry x Tech Field : "MONOist," "EE Times Japan," "BUILT," etc.
  • Subsidiaries/Affiliates : "Hatchu Navi," "Majisemi," "ITreview (iT-Cloud)," etc.
  • Main Revenue Sources : Lead Generation (35%) for acquiring/providing prospect data, Digital Events (20%) such as webinars, and Reserved Advertising (25%) such as tie-up ads.
• BtoC Media Business (20% of revenue) :
  • Includes "Netorabo," "ITmedia Mobile," "ITmedia PC USER," "Fav-Log," etc.
  • Main Revenue Sources : Programmatic Advertising (20%) based on PV and CPM. Characterized by high-efficiency operations with minimal sales resource requirements.

---

5. Key Topics and Growth Strategy Progress

Three qualitative topics were significant this quarter:

1. Majisemi Integration and AI Utilization : Majisemi, acquired in April 2026, specializes in webinar lead generation for IT projects. In Q1, it performed as planned with 160 million yen in revenue, 182 clients, 280,000 members, and 308 events held . Furthermore, it launched an "AI tool to predict webinar attendance," strengthening support for marketing professionals.
2. Expansion of "Hatchu Navi" to 9,000 Members : As of July 2026, the number of member companies for "Hatchu Navi," which connects system developers with ordering companies, reached 9,000 (a rapid increase from 5,000 in February 2024), establishing an overwhelming position in IT buyer-vendor matching.
3. ITmedia ID Members Exceed 2 Million : Registered users for reader services surpassed 2 million . Backed by high-quality member data, the company's competitive advantage in BtoB lead generation and marketing support has become even more robust.

---

6. Full-Year Forecast and Shareholder Return Policy

Full-Year Consolidated Forecast (FY2027)

The company expects record-high revenue and the first operating profit growth in four years for the current fiscal year.

• Revenue : 9,200 million yen (+10.7% YoY)
• Adjusted EBITDA : 2,200 million yen (+13.9% YoY)
• Operating Profit : 2,000 million yen (+13.3% YoY)
• Profit Attributable to Owners of Parent : 1,380 million yen (+15.8% YoY)
• EPS : 70.82 yen (Previous year: 61.34 yen)

Solid top-line growth is expected, supported by the recovery in the BtoB media business and M&A effects from Majisemi and P.P. Communications.

Shareholder Returns (Dividend Forecast)

• The company maintains a "consolidated dividend payout ratio of 70% or more" policy.
• Through FY2025, the company implemented special dividends (100–115 yen annually) to achieve a payout ratio exceeding 100% to improve capital efficiency. Having achieved this goal, it is reverting to its standard dividend policy (70% payout ratio) starting this fiscal year (FY2026).
• Accordingly, the annual dividend forecast is 50.0 yen per share (70.6% payout ratio) . The basic policy moving forward is to prioritize "strategic investment" while aiming for an increase in the absolute dividend amount in line with earnings growth.

---

7. Mid-to-Long Term Growth Vision: Roadmap to FY29 EPS 140 Yen

Finally, we examine ITmedia's mid-to-long-term growth trajectory.

[Why this slide is important]

Slide 11 is a large-scale graph showing nearly 20 years of performance trends and the growth image toward the mid-to-long-term target of "EPS 140 yen" by FY29 (ending March 2029) . It clarifies the company's history of growth through past transformations (e.g., acquisition of Keyman's Net) and the path toward future leaps.

[Mid-to-Long Term Targets and Strategy Points]

• Target : EPS of 140 yen in FY29 . This is approximately double the current fiscal year's forecast (70.82 yen), representing a challenging goal to expand operating profit to 3–4 billion yen and net profit to around 2.7 billion yen .
• Key to Growth (Media + α Business Entity) : The company aims to evolve beyond simple advertising/media space sales into a "data-driven media + α business entity adapted to the AI era."
  • Media Evolution : AI-driven editorial efficiency and content modernization.
  • Expansion of Information Services : Providing deeper services for technology buyers, such as consulting, research, advisory, and matching (Hatchu Navi/Majisemi).
  • Expansion of Marketing Services : Providing high-value-added solutions leveraging the 2 million member database and intent data.

---

8. Conclusion

ITmedia's Q1 FY2027 results mark a very strong start, achieving record-high revenue and high profit margins through the synergy of dramatic BtoC profitability improvements and BtoB M&A effects (e.g., Majisemi's contribution) .

By introducing "Adjusted EBITDA" as a metric for actual earning power and combining its rich member base (2 million ITmedia IDs) with matching platforms (Hatchu Navi/Majisemi), the company is successfully transforming from a mere media company into a "technology marketing infrastructure utilizing data and AI."

We will continue to monitor the progress of the company's data-driven growth story as it aims to achieve record-high full-year revenue, profit growth for the first time in four years, and its mid-to-long-term target of "FY29 EPS 140 yen."