Tameny Inc. Q2 FY2026 earnings call

Overall Interim Results

• Total interim revenue was 2.769 billion yen, up 2.7% year-over-year, driven by growth in the Casual Wedding and Regional Revitalization/QOL segments. Operating loss was 119 million yen, a 19 million yen decline year-over-year, due to increased selling, general and administrative (SG&A) expenses. Recurring loss was 145 million yen (24 million yen decline YoY), and net interim loss was 136 million yen (13 million yen decline YoY). Revenue came in as planned, while operating profit slightly missed plan due to higher SG&A, but overall results were broadly in line with expectations.
• SG&A totaled 2.043 billion yen, up 46 million yen YoY. The increase came from higher personnel expenses (+44 million yen YoY) from headcount expansion in Casual Wedding, higher advertising promotion expenses (+47 million yen YoY) from strengthened marketing across segments, and higher depreciation (+5 million yen YoY) from accelerated depreciation for marriage hunting outlet optimization; this was partially offset by lower goodwill amortization (-59 million yen YoY) from prior period impairment.

Marriage Hunting Business Operational Updates

• Price increases implemented at the start of the period raised monthly fee per user 1.8% YoY, with admission unit pricing also rising gradually from reduced discounting.
• Outlet size optimization: consolidating Tokyo locations and downsizing regional locations, which triggered accelerated depreciation but will reduce next period rent by roughly 40 million yen.
• OTOCON marriage hunting parties were restructured, with event count up ~40% YoY and participant count up ~30% YoY, driving improved performance. Partner Agent total active members declined 3.8% YoY, but Q2 new admissions were flat YoY, so management expects member declines to stop.
• The optional access add-on for IBJ's marriage brokerage platform launched nationwide in October after a strong regional test. Over 50% of new admissions purchased the add-on, vs. a 30% forecast, and 4% of existing members upgraded, vs. a 1% forecast. This add-on increased the total number of potential matches per member to ~190,000 (industry-leading), and management expects it to drive gradual improvements in average revenue per user starting in the second half.

Casual Wedding Business Operational Updates

• A new outsourced business model for Sumakon was launched, where Tameney handles customer acquisition and contracting, while planning and execution are delegated to partner venues. This model already accounts for ~5% of first half transaction volume.
• LUMINOUS photo wedding renovated its flagship Odaiba studio, implemented pricing improvements that raised average unit price ~6% YoY, and renegotiated dress sourcing costs to cut per-unit cost ~6%, improving overall margin. Lafsta, a new higher-end casual wedding offering launched last summer, is tracking to plan with order growth, and now accounts for ~14% of Sumakon series closed transactions.
• 2jikai-kun (wedding after-party service) is underperforming on closed transaction targets, and management is implementing training to improve contract conversion rates.

Regional Revitalization/QOL Business Operational Updates

• The segment is led by strong growth in regional revitalization, with 5 contracted local government marriage hunting support centers and 26 commissioned seminars/events (+5 YoY). QOL's insurance sales business has recovered, with new policies up 24% YoY, and a new co-located store combining OTOCON parties and insurance sales opened in Shinjuku in September to test cross-selling.
• Registered members for the segment's customer exclusive platform now exceed 60,000, with 76 partner lifestyle and wedding-related services available.

1. Marriage Hunting Business: 982 million yen in revenue (35.4% of total interim revenue), 77 million yen in operating profit. Revenue decreased 8.9% year-over-year, and operating profit decreased 64.3% year-over-year, missing plan significantly.
2. Casual Wedding Business: 1.562 billion yen in revenue (56.4% of total interim revenue), 7 million yen in operating profit. Revenue increased 6.4% year-over-year, and operating profit increased 94 million yen year-over-year, achieving a black-ink result despite upfront investments.
3. Regional Revitalization/QOL Business: 237 million yen in revenue (8.6% of total interim revenue), 46 million yen in operating profit. Revenue increased 47.7% year-over-year, and operating profit increased 206.2% year-over-year, outperforming prior year results significantly.

• Full year FY2026 guidance is maintained unchanged from the initial plan: total revenue is forecast at 6.3 billion yen (+6.6% YoY), operating profit at 269 million yen (+325 million yen YoY), and net income at 214 million yen (+~1 billion yen YoY). Management expects full year results to remain within the initial plan range.
• Accelerated depreciation for marriage hunting outlet optimization will be completed by the end of January 2026. The IBJ platform add-on is expected to drive improvements in admission, monthly, and marriage unit pricing starting in the second half.
• For the Casual Wedding segment, 90% of full year planned execution volume is already contracted as of early November, and the impact of the April price increase will be fully reflected starting from Q3. The segment is tracking to plan overall.
• The Regional Revitalization/QOL segment is already at 50.4% of full year revenue target and 74% of full year operating profit target at mid-year, tracking well to plan. A new real estate brokerage business launched in November in partnership with Pitutto House Network, with full revenue contribution expected starting next fiscal year.
• Management targets eliminating negative net worth (exiting overindebtedness) by the end of FY2026. A third-party allotment capital increase raised 700 million yen, bringing net worth to near-zero as of mid-year, and the forecast full year net income of 214 million yen is expected to bring ending net worth to just under 220 million yen, achieving this target.
• Progress on capital business alliances is on track: IBJ collaboration is driving marriage hunting improvements, and collaboration with AI Fusion Capital Group is advancing SNS marketing strengthening and AI/DX implementation, with target outcomes expected next fiscal year.

• The Marriage Hunting business is significantly underperforming full year plan: interim revenue progress is only 45.2% of full year target, operating profit progress is only 21%, and new admission progress is only 34.1%, creating ongoing downside risk to full year results.
• Wedding after-party service 2jikai-kun is facing sustained declines in closed and executed transaction volume, and has missed interim performance targets.
• LUMINOUS photo wedding closed transactions are slightly below plan, with a temporary 3.6% YoY decline that creates near-term margin pressure despite overall segment stability.
• The company remained in negative net worth as of the interim reporting period, and any miss to full year profit forecasts could delay the planned elimination of overindebtedness by the end of FY2026.

The provided earnings call transcript does not include a transcribed question and answer section, so no content can be summarized for this part.