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What are the reasons for the strong performance of the domestic business in the fiscal year ended on January 31, 2026?

  1. Amusement arcade business

Driven by the large scale of GiGO’s store network and sales volume, the deployment of “GiGO-exclusive prizes” has been increasing year after year.

This is because IP rights holders, attracted by GiGO’s expanding scale resulting from roll-up M&A and annual new store openings, have begun proposing “GiGO-exclusive prize” projects to us. As a result, we rolled out over 200 types of GiGO-exclusive prizes in the fiscal year ended on January 31, 2026, which has driven same-store sales growth. For the fiscal year ended on January 31, 2026, the annual same-store growth rate remained around 100 to 110% year-on-year throughout the period.

  • Karaoke business

We have welcomed KAJI Corporation, the industry leader among karaoke equipment dealers, and ONTSU, the second-ranked player, into our group through M&A.

The establishment of ENNE Co., Ltd., born from the reorganization of these two companies, has created an overwhelmingly dominant industry-leading distribution network. As a result, our bargaining power has increased dramatically.

Furthermore, we have established a unique secondary distribution business that leverages our scale by taking in used karaoke equipment from Karaoke BanBan – the third-largest player in the karaoke box industry – and selling it to the nationwide night market and other segments through ENNE’s industry-leading wholesale network.

At Karaoke BanBan, the same-store growth rate has also maintained a stable level, averaging 101% annually.

  • Foreign currency exchange machine business

By promoting DX, such as the utilization of AI, revenue has grown dramatically, achieving year-on-year increases in every month since joining the group.

In addition to being acquired at an appropriate valuation of 4.7x EV/EBITDA, the foreign currency exchange machine business is characterized by low maintenance CAPEX. By doubling earnings through operational efficiencies driven by DX, it has been transformed into a high-margin business delivering high ROIC.

As one of our carefully selected organic growth investments based on high IRR/ROIC, we envision aggressive deployment centered on major domestic store chains in the fiscal year ending on January 31, 2027.

Tag: 2026/3/31