(E00698) Stock Price

Kobe Shimbun is a regional media company based in Hyogo Prefecture that operates comprehensive information services centered on newspaper publishing. The company forms a group with 22 subsidiaries, with its core business being the publication, printing, and distribution of newspapers, magazines, and books. In addition to daily newspaper operations, the company also operates broadcasting and real estate rental businesses, with a particular focus on advertising agencies and printing services.

The company's primary customers in the newspaper business are general readers and regional companies throughout Hyogo Prefecture. Revenue is primarily generated from newspaper subscription fees and advertising income. Additional important revenue sources include broadcast advertising income from affiliated companies Radio Kansai and Sun Television, as well as real estate rental income from company-owned buildings.

The business is divided into four segments. In the largest segment—newspapers, magazines, and books—affiliated companies such as Kobe Shimbun Comprehensive Printing and Daily Sports handle printing and distribution. The broadcasting segment operates Radio Kansai and Sun Television. The rental business segment manages real estate properties including the Kobe Shimbun Building. The company also operates other businesses including travel services and building management, providing diverse services closely integrated with the local community.

Kobe Shimbun is pursuing a management strategy centered on enhancing editorial value rooted in the local community and expanding new revenue sources. The company has set stable profitability as its management goal, using operating profit as a key metric while aiming to establish a sustainable management structure based on its three-year business plan starting in fiscal 2025. Amid challenging business conditions marked by declining newspaper circulation and rapid advances in digital technology, the company is continuously optimizing its cost structure through operational and organizational reviews.

In the digital sector, where the company is placing particular emphasis, specific targets include improving customer satisfaction through a redesign of Kobe Shimbun NEXT's service offerings and doubling corporate course membership. While pursuing operational efficiency and revenue expansion through active use of generative AI, the company is also advancing its e-commerce site toward a full growth phase. Additionally, Daily Sports is developing a subscription model specialized in fan-focused sports content, scheduled for launch in summer 2026.

Expanding community-focused businesses is also a key differentiation strategy. The membership-based business networking hub "Anchor Kobe" is marking its fifth anniversary and is pursuing both revitalization of the Kobe economy and revenue growth through strengthened partnerships with overseas companies. The company is also advancing matching services between local companies and university students through "M-Lab Shukkatsu" and expanding its digital signage business through partnerships with major leasing companies, positioning these as revenue sources secondary to the newspaper business.

In technological innovation, the company is actively promoting generative AI adoption across departments to streamline news distribution and create new media experiences. Through strengthened fact-checking capabilities, the company is addressing misinformation on social media while enhancing its credibility and relevance as a regional media outlet. The company is also maintaining and strengthening its newspaper home delivery system through delivery network reorganization and expanded partnerships with other companies.