(E00697) Stock Price

Nishinippon Shimbun Company is a regional newspaper publisher and comprehensive media company based in the Kyushu region. The company's core business is publishing the daily newspaper "Nishinippon Shimbun" in morning and evening editions, while also providing online news services through its digital app "Nishinippon Shimbun me." The company operates as a community-focused media group, with additional revenue from advertising production and event management related to its newspaper business.

The company's revenue structure centers on a traditional media model, with newspaper subscriptions and advertising income as its main pillars. Through group subsidiaries, the advertising business provides comprehensive services to regional companies and organizations, including newspaper ad production, placement, and insert advertising. Rental income from owned real estate also represents an important and stable revenue source.

The company's operations are divided into three segments: "Media-Related Business," "Real Estate Business," and "Other Business." The Media-Related Business handles printing and transportation in-house within the group. The Real Estate Business encompasses a broad range of activities, from rental management to property development, sales, and brokerage. The Other Business includes food sales and coin parking operations, creating a diversified business portfolio rooted in the local community.

Nishinippon Shimbun has identified reversing its current revenue decline as the top priority in its 2025 medium-term management plan. Beginning in April 2024, the company is implementing fundamental structural reforms to achieve revenue growth through a two-year initiative centered on three pillars: "media business model transformation," "expanded group sales," and "strengthened management foundation." As newspaper circulation and advertising revenue continue to decline, the company is developing new revenue streams to build a sustainable growth platform and eliminate the print media business's deficit structure.

In the digital media sector, the sports-focused website "Nishi Spo WEB OTTO!" has achieved significant revenue growth and reached profitability ahead of schedule in the second half of fiscal 2024. The digital edition "Nishinippon Shimbun me" is steadily increasing paid subscribers, and the company is expanding related businesses including sports ventures originating from these digital platforms. The company is accelerating its business model transition from print to digital media while pursuing increased customer lifetime value.

In new market development, the group's "Brain Training Newspaper Project" has gained attention. Launched with brain-training puzzles aimed at preventing cognitive decline in seniors, the project has created new revenue streams through related events and merchandise sales. The initiative won the Japan Newspaper Association's 2024 Newspaper Management Award, earning high industry recognition. Real estate has emerged as a solid "second pillar" following newspaper sales, and the company is now focusing on cultivating a third revenue pillar.

To strengthen sales operations, the company has reorganized its structure to focus on selective business priorities. It is deepening analysis of local companies' and municipalities' needs to strengthen corporate and government sales, while deepening inter-group collaboration to enhance earning power. Starting April 2025, the editorial division has restructured its business and regional content sections to achieve more efficient newspaper production with limited management resources. Through these initiatives, the company is pursuing improved profitability while maintaining its value as a regional media outlet.