Fonfun <2323> is developing a cloud solution business with product groups such as the SMS distribution service “Banso SMS,” a remote solution for corporate security tools, the cloud phone system “CallConnect,” and the daily settlement platform “Resudaku” for restaurants, and a DX solution business that performs engineer technology outsourcing, etc. From the 2025/3 fiscal year, the segment was changed from the conventional “remote mail business,” “SMS business,” “voice mail business,” “contract development software business,” and “other business,” to 2 segments: “cloud solution business” and “DX solution business.”
The “cloud solution business” (69.4% of sales for the first quarter of the fiscal year ending 2025/3) is a business that mainly includes SaaS-type service groups, starting with “Banso SMS” and “remote mail,” which have been provided conventionally. Stock revenue, which is the usage fee for SaaS, is the main one, leading to stable growth. Meanwhile, the “DX Solution Business” (same 30.6%) is a business that will have a significant impact on the company's financial results in the future as a core business even though it is a new business. Facing the needs of each customer, we will promote DX transformation of the entire company/society with data, technology, and a deep understanding of the customer's business, and produce business together with customers.
Sales for the first quarter of the fiscal year ending 2025/3 were 235 million yen, up 36.8% from the same period last year, adjusted operating profit (EBITDA) reached 49 million yen, 2.3 times the same time, and operating profit reached 40 million yen, 4.2 times the same period. Both the cloud solution business and DX solution business segments continue to grow. Also, sales for full-year results were revised upward from 831 million yen to 1269 million yen (up 81.4% from the previous fiscal year), and operating profit was revised upward from 80 million yen to 133 million yen (up 79.1% from the same period), taking into account the accounting effects of making LLC Selfree, Groucord Communications Co., Ltd., and E-Cloud Service Co., Ltd. wholly owned subsidiaries in the second quarter.
The company has disclosed a new medium-term management plan, and is aiming for stable growth of existing businesses and the creation of core businesses through DX business and M&A, which are core businesses. The numerical targets are expected to be sales of 2 billion yen, EBITDA of 0.4 billion yen, and 100 engineers for the fiscal year ending 2026/3. The business and management system is being strengthened by a board of directors with knowledge in various fields such as DX, overseas business, and M&A, and we aim for M&A of domestic software development companies/SES companies and overseas offshore development companies to acquire engineer human resources. As high growth in business performance continues, in addition to solid growth in the existing cloud solution business, I would like to expect growth in the DX solution business and discontinuous growth through M&A, and I would like to keep an eye on future trends of the company as it enters a period of business transformation.