Fines, Inc. provides support for corporate marketing DX based on video with its 'Video Cloud Business' and supports store DX using reservation and customer management systems for stores. Video Cloud Business sales mostly make up for the sales revenue of the cumulative 3Q of the 2024 June period. The company mainly provides three services: video production services, video streaming platform services, and DX consulting services in that business. The number of companies that have introduced Video Cloud has surpassed 4,519 as of the end of March 2024.
Fines, Inc. operates its business targeting small and medium-sized enterprises and sole proprietors. The market for video production for small and medium-sized enterprises has a huge potential demand of about 6.7 million companies. The company implements telemarketing and direct marketing, and directly proposes to the management of small and medium-sized enterprises. It seems that they can acquire projects from potential needs with few direct competitors through a strong direct sales system.
In the cumulative 3Q of the 2024 June period, sales revenue was 2.02 billion yen, a decrease of 6.6% compared to the same period the previous year, and operating profit was 220 million yen, a decrease of 61.5%. It seems that sales decreased and the operating profit margin worsened due to the occurrence of costs related to the relocation of the head office until January and sales earnings being lower than expected. At the same time as the announcement of the 3Q financial results, they have revised down their earnings forecast for the fiscal year. This was due to the decrease in the number of sales consultants and the decline in video production unit prices.
However, as a result of improving the hiring system, the number of sales consultants has been recovering since the 2Q of the 2024 June period, and the number of deliveries per person is also showing signs of recovery. They also believe that it is possible to lower the barriers to introducing customers by strengthening employee education and finance, which had a downward trend in video production unit prices. In the next fiscal year, they plan to launch new services in addition to increasing the number of sales consultants and actively implementing measures to expand sales. Furthermore, it is expected that the DX market and the video marketing DX market will expand significantly in the future, and with the recovery of the number of sales consultants, video production unit prices, and the number of project acquisitions, the company's performance is expected to improve.