KIDS STAR Inc. (248A) Stock Price

Kids Star is an internet media company that develops and operates family-oriented digital content. It recreates children's imaginative play in digital form to support their growth. Its flagship service is "Gokko Land," a social experience app for smart devices that provides free educational content where children can learn about occupations and social roles through play.

The company's users are primarily child-rearing households. While users enjoy the app for free, revenue comes mainly from pavilion fees and sponsorships from companies and municipalities. Starting in 2024, the company expanded its revenue model through real-world events called "Gokko Land EXPO," earning revenue from both participating companies and host facilities. The international version "Gokko World" operates under the same pavilion fee model.

The company's business consists of multiple pillars: core app operations for "Gokko Land," a regional experience digital guide called "Jimoto Guide," business development support and contract development services for companies (service design), user-paid services from in-house planning, and revenue-sharing businesses through partner collaborations. With cumulative downloads in the millions (7.5 million in Japan, over 1.2 million for the Vietnam version), the company is expanding its business by integrating digital and real-world experiences, supported by growth in monthly play frequency and the number of participating companies.

The company's growth strategy centers on maximizing customer numbers and customer lifetime value. Specifically, it plans to expand the user base by increasing "Gokko Land" pavilion locations domestically and expanding into new countries internationally. As indicators of user reach, cumulative downloads total approximately 7.5 million domestically and over 1.2 million for the Vietnam version, with monthly play sessions up 23% year-over-year as of January 2025. The company prioritizes operating profit as its primary management metric while also tracking pavilion count, cumulative downloads, and play frequency as key performance indicators.

To differentiate itself, the company is prioritizing field sales capabilities and real-world events as key investment areas. It is strengthening its sales team to increase pavilion locations while expanding the real-world event "Gokko Land EXPO" to deepen relationships with partner companies. The company held 5 events in 2024 and aims to expand to approximately 30 events in 2025. The platform maintains free access for child users and generates revenue from pavilion fees and sponsorships from companies and municipalities. The company is simultaneously implementing measures to increase customer value through events and recurring engagement mechanisms.

The company is also building infrastructure for full-scale international expansion. Vietnam already saw its first pavilion partner company in December 2024, and the company plans to establish a local subsidiary in the second quarter of the fiscal year ending December 2025, aiming to accelerate multi-country expansion centered on Asia. In parallel, it is diversifying revenue streams through multiple business pillars including "Jimoto Guide" and enterprise services, seeking to establish long-term growth foundations through new services and partnership models.

The company views technological innovation as a critical growth driver and is investing in cutting-edge technology adoption and research and development. It is enhancing user experience by incorporating augmented reality, virtual spaces, and artificial intelligence, while leveraging usage data to optimize play frequency and monetization strategies. Additionally, the company is strengthening talent recruitment and organizational management systems to support business expansion, balancing investments across technology, sales, and administration to improve profitability and corporate value.