We have been developing our business activities in a wide range of fields in the entertainment industry, and as proof of this, we used to report the number of our stores to investors every month by “GENDA Sales Progress Report” from August 2023 till December 2024.

However, with the acquisition of NEN in the U.S. as a consolidated subsidiary in November 2024, the number of our entertainment platforms has increased significantly, especially exceeded 10,000 locations as our site network in the U.S., and we believe that we have reached a certain target.

Accordingly, we have disclosed sales information by segment since January 2025, as we believe that it is more important to inform investors in a timely manner about the growth of revenue in each business rather than the number of locations.

In terms of revenue information, there are business companies which disclose “a monthly growth rate of ‘existing stores’.” We understand that for companies in which organic growth is the mainstay of growth, “a monthly growth rate of ‘existing stores’” is important to understand the company.

On the other hand, we do not think that for us, who keep expanding our business portfolio through “continuous M&A,” the disclosure of monthly sales growth rate of ‘existing’ amusement arcades and karaoke is the most important to understand us.

It is because the growth rate of ‘existing stores’ is greatly influenced by the number of holidays in the same term of the previous year or weather conditions, and it is not our real intention to increase the volatility of shares unnecessarily due to that because our strategy is to grow on a long-term basis through “continuous M&A.”

On the other hand, we think that it is an indicator which is of strong interest as well and mention it in the quarterly financial closing, etc.

The interpretation of the “sales information by segment” has a point to be noted, too, which means that it is influenced by the size and number of companies consolidated during the month.

For example, the revenue growth rate in the amusement domain for December 2024 was +59.1% YoY, the company-wide revenue growth rate was +106.7% YoY, and the revenue growth rate in the amusement domain for January 2025 was +45.0% YoY, the company-wide revenue growth rate was +83.4% YoY, we have achieved incredible growth.

This is not only because existing stores grew and opening of new stores increased the sales, but also because the revenue of PLABI Corporation, which has 47 amusement arcades and that of Shin Corporation Co., Ltd., which has 368 karaoke premises, were not included in December 2023 but included in December 2024 and likewise, they were not included in January 2024 but included in January 2025 (both numbers of stores are as of the end of January 2025).

On the other hand, since the companies that are the difference in consolidated revenue when comparing February 2024 to February 2025 include SANDAI, AMEX, C’traum, ONTSU, NEN and others, it seems as if  the growth is slowing down when compared to what was reported in January and February 2025.

However, we have to note that is a monthly “screenshot,” which greatly fluctuates depending on the timing of consolidation of M&A.

In the report to be released in April 2025, the growth rate is expected to expand because ActPro, HALOS and D-eight, which are scheduled to be consolidated from March 2025. However, this will not mean that the growth rate goes up but that the consolidation of M&A is started at that timing.

In terms of that, it is better to compare yearly, not monthly, to understand the true state. For example, comparing actual results for FY2024/1 to the target for FY2025/1, revenue is +98% and EBITDA is +60%, and we assume that revenue will be +42% and EBITDA will be +63% for FY2026/1 (the target figures for FY2026/1 do not include M&A, which is not publicly announced at this moment).

On the other hand, we used to make a monthly disclosure because we want to increase our contact with investors as much as possible. However, since we received some comments about concerns for slowdown in the growth rate because of the fluctuations of monthly growth rate, we hereby explain the background again in this FAQ. When you make an investment decision on our stock, we would be grateful if you could kindly understand our growth strategy including M&A and the track record, our future prospects, in addition to the change in single month sales. We would appreciate it very much if you could keep watching our growth and support us.