GENDA <9166> is a pure holding company of entertainment companies centered around amusement, running 'continuous discontinuous growth' through M&A. The segments consist of the entertainment platform business, which includes 'amusement,' 'karaoke,' 'food & beverage (F&B),' and the entertainment content business, which consists of 'character merchandising (MD)' and 'content & promotion,' aiming to establish the 'unique entertainment economic sphere of GENDA' by expanding globally through M&A in both areas. As of the end of August 2024, the M&A and capital transaction track record is "33 cases" (pre-IPO M&A cases "11 cases," post-IPO M&A cases "22 cases"), with the number of 'entertainment platforms' in the GENDA group as of the end of October being 2,290 (814 stores, 1,476 mini locations), continuing to increase since going public. Revenue and operating profit before depreciation are primarily from the entertainment platform business such as amusement and karaoke, with further acceleration expected in the medium to long term by entering the content area while focusing on M&A in the platform.

In the cumulative sales for the second quarter of the fiscal year ending January 2025, revenue increased by 102.0% year-on-year to 49,531 million yen, while operating profit landed at 3,184 million yen, up 15.0% year-on-year. Despite including M&A operating expenses of 0.41 billion yen and public offering extra costs of 0.13 billion yen in the second quarter cumulative total, all indicators from revenue to net income have met the initial forecast for the first half. The operating profit before deduction of M&A expenses, a KPI demonstrating the profitability of the company focusing on M&A, increased by 56% and significantly reflects continuous discontinuous growth. The full-year revenue is expected to increase by 97.5% to 110,000 million yen compared to the previous year, with operating profit before depreciation expected to increase by 60.4% to 13,000 million yen, and operating profit expected to increase by 30.3% to 7,000 million yen.

A major topic during the same fiscal period is the M&A of the entertainment company NEN, which operates mini-location businesses in the USA. As a result of this M&A, the number of mini locations in the USA is expected to increase rapidly by about 8,000, establishing a network across the United States. Planning to leverage the synergy of the entire group, providing Japanese 'Kawaii' in approximately 8,800 locations in the USA utilizing Kiddleton focusing on experiences unique to the USA, subsidiaries in China providing cabinets, such as Wuo Chuai, and providing prizes, Ares and Fukuya. Since the sales per Kiddleton location are approximately three times that of NEN, they are rapidly expanding even before the closing. Furthermore, GENDA Europe Ltd. has been established in Europe, considering a full-fledged entry into the European market. In existing businesses, the 'GiGO Osaka Dotombori Main Store' has been opened under the amusement facility 'GiGO' brand, recording the 'highest sales ever on the first day of GiGO's history.'

In the company's M&A activities, the majority of cases are implemented through direct sourcing utilizing the network within the group, led by Representative Director and Chairman Kataoka, without the need for brokerage. It is a sourcing by inner circle members in the entertainment industry, enabling smooth progress not only in price negotiations but also in post-merger integration (PMI) after group integration. Among the 105 members constituting the pure holding company 'GENDA Co., Ltd.', approximately 71 are tech-related personnel, more than the management personnel responsible for M&A, which is a characteristic feature. After executing M&A with management personnel, tech personnel with specialized experience support PMI from the perspective of DX. By repeatedly sending tech personnel to perform DX initiatives as part of PMI after M&A completion, they are steadily carrying out PMI after M&A. For the next fiscal year ending January 2026, revenue is expected to reach 140 billion yen, with pre-depreciation operating profit of 18.5 billion yen (operating profit of 10.5 billion yen) and pre-goodwill net income of 7 billion yen, based on the assumption that there will be no M&A activities. In reality, with the funds raised from public offerings of 10 billion yen and the expanded borrowing capacity based on this, the M&A pipeline is at its largest in terms of value, further accelerating M&A activities to enhance medium to long-term performance. The company is steadily achieving 'continuous discontinuous growth' and is likely to attract significant attention towards the goal of becoming the world's leading entertainment company by 2040.