Interspace Co.,Ltd. (2122) Stock Price

Interspace operates primarily through internet-based promotion and media operations. Its main services include AccessTrade, a performance-based advertising network, along with lifestyle support services for smartphones and marketing solutions for corporate clients.

The company's primary customers are merchants selling products and services, partner websites that display advertisements, and individual users and website operators. Revenue comes from performance-based commissions, system usage fees, initial setup fees, monthly subscription charges for individual and corporate services, and advertising income from media placements.

The business is divided into two main pillars: performance marketing and media. The performance marketing division operates AccessTrade, offers individual services such as antivirus software, spam call blocking, and cloud backup through mobile retailers, and provides web analytics tools like SiteLead. The media division generates advertising and performance-based revenue through content media platforms including Mamastar, saita, Yoga Journal, and 4MEEE, as well as comparison and research platforms such as Juku Shiru and転職派遣サーチ.

Interspace has set a mid-term vision for the period from October 2023 to September 2026 to "achieve a top position in performance marketing across Asia." However, due to unexpected changes in the business environment and stricter regulations from platform operators, the company expects fiscal 2025 results to fall significantly short of plan, and fiscal 2026 targets are also unlikely to be achieved. In response, the company is accelerating a reconstruction of its mid-term plan, prioritizing three metrics—revenue, operating profit, and ROE—while planning to announce revised numerical targets at a later date. On the market side, internet advertising spending is projected to reach 3.247 trillion yen in 2025, a 9.7% increase year-over-year, and capturing this growth potential is essential to the company's expansion strategy.

The company's priority investment areas are two pillars: performance marketing and content media. Specifically, leveraging the performance-based advertising network "AccessTrade" as a starting point, the company will introduce new services combining marketing solutions with customer data and sales capabilities accumulated through past operations. On the media side, the company will differentiate itself by expanding paid membership services and high-value content using the member base of properties such as MamaSta and Saita, aiming to grow fixed-rate revenue independent of advertising income. The company will also continue developing fixed-fee subscription services for consumers, such as antivirus software and cloud backup solutions.

For business expansion, the company plans to advance into overseas markets, particularly Asia, and diversify its revenue models. While optimizing management resources for overseas operations, the company will target market share through services tailored to local business practices and strategic partnerships. Domestically, the company plans to increase the ratio of solution sales directly linked to advertising results and monthly subscription contracts through comparison and review media and analytics tools (such as SiteLead), thereby stabilizing revenue. Progress on these initiatives and revised numerical targets will be disclosed promptly following the mid-term plan review.

Regarding technological innovation, the company is using artificial intelligence and automation to improve cost structure and service quality. Specific measures include reducing outsourcing costs through automation of ad operations and analytics work, optimizing headcount through operational efficiency improvements in revenue-generating divisions, and strengthening data management infrastructure in anticipation of platform regulations. Through these efforts, the company aims to achieve both short-term cost reduction and medium-to-long-term competitive strengthening, leading to sustainable growth.