•Q&A: Regarding strengthening the “NIJISANJI EN” system
My question is, "Please tell me specifically what kind of things you will be working on and over what timeframe regarding strengthening the structure of NIJISANJI EN."
Takuno : I believe that first of all, building a relationship of trust with existing talent will lead to building a relationship of trust with fans.
In that sense, we are working to establish a solid foundation for our management system. In addition, over the next few months, we are planning content that will make NIJISANJI EN more exciting and build a strong relationship of trust with our fans.
•Q&A: Regarding recording of event sales sales
Tsuri : My question is, ``Is it correct to understand that goods sold at events will be recorded in the event segment, just like Cover Company?''
I am not aware of the details of Cover Company's accounting. Our company records only ticket revenue sold in connection with the event as sales in the event area, and goods sold in connection with the event are recorded in the commerce area.
The reason is that it is confusing to what extent event-related goods are considered event-related. The line between ticket sales and merchandise sales is the clearest, so we record them as such.
•Q&A: Business progress and outlook for the fourth quarter
“Business progress is according to plan, but I think there are differences in each category.Also, it seems that strong performance is expected in the fourth quarter, but what kind of measures do you think will contribute? Is that the case?” is the question.
Regarding the density of each category, "Nijisanji" is progressing at a faster pace than planned. On the other hand, "NIJISANJI EN" is slightly below plan, and there is a sense of some challenges.
In terms of business areas, we have made more progress in the commerce and promotion areas than we had originally planned.
Although the overall volume of events is not that high, the top line is generally progressing better than planned. However, as explained above, there are issues on the cost side, especially regarding the events held in the most recent third quarter.
Revenues generated from live streaming have not grown as much as we expected, and are slightly below plan. I think this is partly due to the popularity of YouTube as a whole, and also because the pace of our new debuts is a little slower than expected.
In the fourth quarter, we have accumulated strong corporate projects in the fields of commerce, events, and promotions, which will contribute to our pipeline.
Commerce will also include 6th anniversary goods launched in February, Yokai illustration goods, and goods related to the two events on the right side of the slide. We are also refraining from shipping orders received after the "Nijisanji Festival".
These two events have different formats from Nijisanji Festival, and are 100% sponsored by our company. Therefore, we expect the amount recorded in the event area to become stronger.
•Q&A: Regarding the impact of Selen’s contract cancellation
Tsuri : “Regarding the cancellation of Selen’s contract, some of it was disclosed in the IR release, and I think it caused a lot of controversy after that. Could you please tell me the impact of this on the third and fourth quarters?
Also, I feel that this is making it even more difficult to develop NIJISANJI EN, so please tell me your thoughts."
Takuno : It is true that the provision of scheduled content has been postponed, and we believe that this will have an impact on the schedule.
In response to this, we believe that we need to rebuild our relationship of trust with fans by firmly implementing measures that will enliven not only the tournament, but NIJISANJI EN as a whole. .
I believe that the fans who support our VTubers are still firmly supporting us. We would like to work to restore relationships of trust by creating content that will please such people.
•Q&A: Regarding initiatives related to overseas expansion
Tsurii : My question is, ``The press has reported that Cover Company is setting up a sales office in North America, but could you please tell us more about your company's efforts regarding overseas expansion?''
Takuno : In addition to the content development that I explained earlier, we need to work hard on recruiting human resources not only in North America but also in Asia, including commerce, licensing, sales, content production, etc. as a business development. I think.
We believe that we need to hire people from a variety of language and cultural areas, so we are currently recruiting people living overseas as employees.
•Q&A: About growth rate and current phase
Tsuri : My question is, ``What is the expected constant growth rate? If you are a growing company, what phase are you currently in? Is it time for investment? Or is it time for recovery?''
We do not disclose growth rates, so I would like to refrain from sharing specific numbers. My explanation was that we would continue to achieve a certain level of growth.
Regarding phases, it has now been six years since we started our business, and our business is not a business in which we invest billions of yen and recover it several years later. Cycles are shorter and more frequent.
In order to deliver attractive content to our fans, we will hire people, expand the necessary distribution equipment and other equipment, debut VTubers, and receive feedback from our fans, which will lead to profits. . I don't think this will involve a long-term, large-scale investment that I would dare to tell you the timing of investment or payback.