Advanced Media <3773> is composed of a single segment of the voice business centered around the AI voice recognition AmiVoice.

The single segment of the voice business defines existing core business as BSR1 (first growth engine), and new business creation, M&A, overseas business as BSR2 (second growth engine), consisting of eight profit units. BSR1 is divided into four parts: the CTI business unit for call centers (47.0% of revenue for the fiscal year ending March 2024), the VoXT business unit for local governments and various private companies (18.6%), the medical business unit for hospitals and clinics (13.7%), and the SDX business unit for private companies in manufacturing, logistics, finance, pharmaceuticals (10.1%). The stock ratio of BSR1 is 71.4%, providing a stable model for earning profits. Services utilizing AmiVoice, covering a wide range of industries and sectors, such as 519 companies (74,314 licenses) in call centers, a cumulative total of 2,272 facilities in local governments and private sectors, and 18,229 facilities in the medical field (52,251 licenses), have already been implemented.

The revenue for the first quarter of the fiscal year ending March 2024 increased by 20.6% compared to the same period last year, reaching 1,482 million yen, and the operating profit landed at 265 million yen, representing a 94.6% increase. Due to the increasing demand for AI technology to enhance productivity in various companies, the introduction and continued use of various products and services related to AmiVoice have been progressing well. By maintaining a high stock ratio, revenue significantly increased by 22.4% year-on-year for the CTI and VoXT business units in BSR1, and by 8.7% in revenue for BSR2 compared to the previous year. The performance for the full year ending March 2025 is expected to be 7,000 million yen in revenue, a 16.6% increase from the previous period, and an operating profit of 1,470 million yen, a 7.5% increase.

In the domestic voice recognition market, the company holds the top position in the software market and cloud services market. AmiVoice, an AI voice recognition technology, has achieved top market share in the voice recognition market due to its high implementation rate, high recognition rate, and ability to handle a wide range of industries and specialized terminology. While there are no direct competitors currently, technically skilled tech giants from the U.S. such as Google, Amazon, and Microsoft are capable of developing voice recognition technologies. However, the company has a strong focus on BtoB (business-to-business) and has received high praise from customers, particularly in specialized areas such as call centers, medical fields, and meeting minutes transcription. Despite concerns arising when Google entered the voice recognition market, the company stood out as the market leader in providing services using voice recognition technology for businesses in Japan. The mid-term goal is to achieve revenue of 10 billion yen and operating profit of 2.5 billion yen, expanding business through goal-focused platformization of existing and new applications/services. The company is actively considering M&A opportunities with synergistic companies related to new businesses utilizing AI and voice recognition technologies, targeting two acquisitions of companies with revenue ranging from 10 to 20 billion yen and operating profits either in the black or with expected profitability, with acquisition amounts ranging from 20 to 40 billion yen by the fiscal year ending March 2027. With a favorable market environment, the steady growth of the company is worth keeping an eye on for future developments.