Tameny Inc. Q4 FY2025 earnings call

• Leadership and Governance Updates

  • Founder President Sato returned to the role of Representative Director President in April 2025 after 2.5 years, with former president Kurisawa moving to Representative Director Chairman to oversee corporate governance and stakeholder relations.
  • Received shareholder proposals for outside director appointments from two major shareholders: 15.09% voting rights holder IBJ proposed 2 outside directors to improve marriage success rate, strengthen member base, improve profitability and governance; IBJ has since withdrawn its proposal, and Tameney has begun constructive dialogue with IBJ. 4.94% voting rights holder Totem proposed 3 outside directors, and dialogue is ongoing.
  • President Sato committed to sweeping, no-sanctuary structural reform to return to consistent profitability, marking the company's 20th founding anniversary.

• Overall Fiscal 2025 (March 2025) Results

  • Total company revenue was 5.909 billion yen, up 5.5% YoY, driven by growth in the casual wedding and regional revitalization segments.
  • Operating loss was 56 million yen, a 133 million yen deterioration YoY, driven by a 200 million yen increase in selling, general and administrative expenses (SG&A) mainly from increased advertising investment. Net loss was 848 million yen, including a 718 million yen special loss from goodwill impairment.
  • Net assets as of March 2025 were negative 694 million yen, putting the company in negative equity.
  • SG&A increased 206 million yen YoY: advertising and promotion costs rose 135 million yen (+18.3% YoY), personnel costs fell 1.8% YoY from productivity gains, rent fell 10.5% YoY from store consolidation, and other SG&A rose 17.7% YoY from increased outsourcing and referral fees for expanded casual wedding operations.

• Second Mid-Term Management Plan Direction

  • No changes to the core plan policy; the company remains focused on building a foundation for sustainable growth.
  • Key priorities: 1) Strengthen competitiveness and productivity: polish brand and product quality, restart meaningful advertising investment, and launch a president-led project to drive IT/DX/AX innovation and productivity improvement with a new head of system division hired in April 2025. 2) Strengthen human and financial capital: improve employee training and working environment flexibility, revise profit margin structures for all segments, pursue capital increases to improve equity ratio, and plan for future shareholder returns. 3) Advance coexistence with society: strengthen sustainable management and deepen collaboration with local communities.
  • The company is targeting a one-year delay to achieve original mid-term targets, with full year 2027 (March 2027) targets set at 7.49 billion yen revenue, 660 million yen operating profit, and 8.9%+ operating margin. The marriage hunting business is expected to recover slower than originally planned and miss prior targets, while the casual wedding business is expected to exceed prior targets on the back of 10-15% recent revenue growth.

1. 婚活事業 (Marriage Hunting Business): 2025 March full year revenue was down 8.8% year-over-year, operating profit was down 43.2% year-over-year. Advertising and promotion expenses increased 3.6% YoY due to strengthened SNS marketing. The average membership sign-up unit price increased 48.0% YoY after cutting excessive discounts. New sign-ups dropped 18.2% YoY, but the decline narrowed quarter-over-quarter.
2. カジュアルウェディング事業 (Casual Wedding Business): 2025 March full year revenue grew 12.3% YoY, operating profit improved by 62 million yen YoY, achieving its first profitable year in five years. Advertising and promotion expenses increased 31.2% YoY aligned with growing contract volume. New contracts grew 14.2% YoY, execution volume grew 16.4% YoY: スマ婚 (Suma-con) contracts grew 32.3% YoY, studio LUMINOUS contracts grew 4.2% YoY, 2次会くん (2jikai-kun) contracts were flat YoY. This business contributed 64.1% of total company revenue (calculated based on 2025 total revenue of 5.909 billion yen).
3. 地方創生／QOL事業 (Regional Revitalization/QOL Business): 2025 March full year revenue and operating profit grew significantly YoY. Local government marriage hunting support service orders were strong: 3 new marriage hunting support system contracts and 6 new marriage hunting support center operation contracts, bringing cumulative totals to 14 and 8 respectively. The number of partner services covering marriage and wedding-related needs expanded to 70, and registered members on the exclusive customer portal exceeded 57,000. This business contributed approximately 7.6% of total company revenue based on 2026 projected revenue of 472 million yen.

• Fiscal 2026 (March 2026) Overall Guidance: Total revenue is projected at 6.3 billion yen, up 6.6% YoY, with an operating profit of 269 million yen, a 325 million yen improvement from fiscal 2025. Operating profit improvement is driven by higher revenue, cost reduction in the casual wedding segment, and a 119 million yen reduction in goodwill amortization (down to 33 million yen for the full year). Net income is projected at 214 million yen, returning to positive net income to meet Japan Exchange Group listing maintenance requirements.
• Marriage Hunting Business Guidance: New sign-ups are projected to grow 39.6% YoY to 5,256 people, OTOCON marriage hunting party events are projected to grow 23.9% YoY to 3,614 events. Advertising promotion spending is increased by nearly 30% YoY to 468 million yen, with the restart of out-of-home advertising for brand awareness. The company has implemented a uniform 1,000 yen monthly membership fee increase for all new and existing members in April 2025, and projects the average sign-up unit price will increase 50% YoY after phased discount cuts.
• Casual Wedding Business Guidance: New contracts are projected to grow, with total execution volume reaching 7,268 units, up nearly 5% YoY. Advertising promotion spending is increased 12.3% YoY to 569 million yen. The new ultra-low-cost brand "Rafusta" (targeting ceremonies funded by ~10 thousand yen in guest gifts) is expected to contribute 2-3% of new contracts this fiscal year. A 10% service fee was introduced in April 2025, with revenue contribution starting in the second half due to lead time between contract and execution. Studio LUMINOUS prices increased 3-5% across plans, with contribution starting in Q2. Renegotiated dress supply costs are expected to deliver tens of millions of yen in annual cost reduction. Operating profit is projected at 370 million yen for the segment.
• Regional Revitalization/QOL Business Guidance: Full year 2026 revenue is projected at 472 million yen, with operating profit of 63 million yen. The segment already has secured contracts for marriage hunting center operations in multiple prefectures including Hokkaido, Miyagi, Aichi, Kyoto, and Hyogo, and will continue to expand collaboration with local governments.
• Capital Increase Timeline Guidance: Management targets finalizing a capital increase plan by the first half fiscal 2026 earnings close, and completing the capital increase by the end of March 2026.

• The company is currently in negative equity with negative net assets of 694 million yen, which creates risk of non-compliance with Tokyo Stock Exchange listing maintenance requirements without successful profitability improvement and capital strengthening.
  • The marriage hunting business has still not recovered to prior growth levels after years of underperformance, with new sign-ups declining 18.2% in fiscal 2025, creating revenue and profit risk if targeted sign-up growth does not materialize after increased advertising investment.
  • New initiatives including the new Rafusta brand, 10% service fee introduction, and partnership with IBJ have not yet delivered proven financial results, and may not meet projected contribution to revenue and profit in fiscal 2026.
  • The company is still in ongoing discussions regarding the shareholder proposal from Totem, creating uncertainty around governance and strategic direction.

Q: Does management see a need for a capital increase this fiscal year to meet listing requirements, and is there a clear timeline for execution? Additionally, IBJ withdrew its shareholder proposal but remains a large shareholder; can we expect collaboration or synergies with IBJ to progress this fiscal year? / A: Management is currently in discussions with existing shareholders and partner companies regarding a capital increase. The target timeline is to finalize the capital increase policy by the time first half fiscal 2026 results are finalized, and complete the capital increase by the end of March 2026. Dialogue with IBJ regarding potential collaboration to improve profitability has continued after IBJ withdrew its shareholder proposal. Tameney will actively pursue any mutually beneficial business and operational alliances with IBJ. While no synergies are included in the current fiscal year guidance, if an agreement is reached this fiscal year, the company could begin collaborative initiatives during the period.