FAN Communications Inc. (2461) Stock Price

Fan Communications is a company operating in the internet advertising market with "performance marketing" as its core business concept. The company provides affiliate advertising services, primarily through "A8.net," to businesses conducting online marketing activities. This service is a results-based advertising model where advertisers pay commissions only when conversions occur on their websites.

The company divides its business into two segments: "CPA Solutions Business" and "New Business." In the CPA Solutions Business, in addition to the affiliate advertising service "A8.net," the company operates "seedApp," a CPI advertising service for smartphone apps. "seedApp" is an advertising format where results are generated when users install other apps through in-app advertisements.

In the New Business segment, the company operates "GERA," a comedy radio app; "YOOR," an online community service; "N-INE," a digital marketing process optimization support service; and "LUMOS BUZZ," a corporate project platform for short-form video creators. "GERA" distributes radio programs by comedians, allowing listeners to purchase sponsorship rights to support their favorite shows.

Additionally, Fan Communications supports overseas advertisers entering the Japanese market, provides intermediary services to domestic and international ad networks, and offers comprehensive marketing support including TV commercials and transit advertising. The company also develops and markets smartphone apps centered on point-earning games.

At subsidiary company WAND, which became a wholly-owned subsidiary in May 2024, the company operates "LUMOS BUZZ," an influencer marketing business. This business leverages social media to design and manage marketing strategies tailored to product characteristics, working with influencers ranging from major brands to micro-influencers.

Fun Communications has launched the "FY25-27 Medium-Term Management Plan" with fiscal year 2025 as the first year and is advancing its growth strategy. Against the backdrop of growth in the internet advertising market, the company is expanding its affiliate network business, with particular focus on influencer affiliate services. The company also aims to support the growth of small and medium-sized enterprises through the provision of digital marketing support tools.

The company's growth strategy aims to maximize operating profit in existing businesses and enhance added value by investing in digital marketing tools and influencer marketing support. Through these efforts, the company will create new business opportunities and increase corporate value. As a capital policy, the company targets ROE of 10% or higher and is advancing shareholder returns and optimization of its cost structure.

Human capital investment is also a key initiative. Fun Communications is improving productivity through the use of AI and DX, while strengthening new graduate recruitment and focusing on the development of DX and Product Manager talent. Additionally, the company is introducing flexible human resources systems to prevent organizational rigidity and create an environment that enhances execution capability.

The company places importance on creating new businesses in the digital marketing field and is deploying services to realize prosumer happiness. In particular, it is focusing on digital marketing process optimization support and influencer marketing services, aiming for early revenue generation. Through these efforts, the company is pursuing sustainable growth.