Aeria

Basic Information

Stock Code: 3758
Industry: Information and Communications
Category Detail: Content Production & Distribution
Prefecture: Tokyo
Establishment Year: October 2002
Listing Year: December 2004
Official Website: https://www.aeria.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: DeNA, Tecmirah, GREE Holdings, Voltage, Nexon, Colopl, GungHo Online Entertainment, gumi, Mynet, Akatsuki, Bank of Innovation, Bandai Namco Holdings, Marvelous

Overview

Aeria is an information and communications company established in 2002, demonstrating competitiveness in the industry through online game operations and content production while engaging in diversified business development.

Current Situation

Aeria recorded consolidated sales of 25.7 billion yen and operating profit of 364 million yen for the fiscal year ended December 2020. Centering on planning and operations of online games, it develops diverse content businesses through group companies. Utilizing domestic and overseas subsidiaries, it focuses on mobile and browser games, addressing diverse market needs such as women-oriented romance simulation games and fitness games. While operating profit remains stable, net profit is in the red, leading to a focus on improving the earnings structure. In recent years, it has expanded its business foundation through subsidiary acquisitions and new business initiatives, while addressing sustainability and new game development to maintain strong competitiveness. For future growth, it is advancing DX initiatives and new IP development, formulating mid- to long-term strategies to expand its presence in domestic and international game markets. Although industry competition is intensifying, it aims for sustainable growth through diversified business development and technology investments.

Trivia

Interesting Facts

Listed on the Osaka Securities Exchange Hercules Market in 2004.
Has promoted group growth by acquiring multiple game subsidiaries.
One of the few Tokyo Stock Exchange-listed companies strong in women-oriented romance simulations.
Handles diverse genres in online game operations.
Early entry into the fitness game market to pursue industry diversification.
History of attempting business expansions beyond games in its early days.
Head office located in Akasaka, Minato-ku, Tokyo, with excellent business access.
Has experienced multiple service terminations while aiming for stable game operations.
Actively collaborates with external companies in game development.
Recently focusing on ESG and sustainability initiatives.

Hidden Connections

Occasionally considers capital and business alliances with peer company Mynet.
Had capital ties and business partnerships with Rakuten Group affiliates in the past.
Holds unique restructuring influence in the industry through subsidiary acquisitions and divestitures.
Multiple subsidiaries engage not only in online games but also real estate business.
Online game version of the 'Ten Count' series was a joint development by Arismatique and UUUM, attracting attention.
Balances in-house development and collaborations with external studios for new home console titles.
Some group companies have expanded into other industries such as minpaku operation agency.
Some past subsidiaries have been listed in Tokyo Shoko Research's notable companies.

Future Outlook

Growth Drivers

Ongoing expansion of the smartphone game market.
High profitability and growing demand for women-oriented content.
Strengthened new IP development and licensing acquisitions domestically and internationally.
Improved development and operational efficiency through DX promotion.
Expansion into health-conscious markets with fitness games.
Enhanced user engagement through new technology introductions.
Synergy creation with digital publishing business.
Expansion of deployments in Asia and North America overseas markets.
Corporate value enhancement centered on sustainability.
Hybrid utilization of diverse sales channels.
Creation of new services through subsidiary collaboration.
Strengthened brand loyalty through community activation.

Strategic Goals

Grow online game sales to 50 billion yen scale.
Establish sustainable management and improve ESG ratings.
Achieve top industry share in women-oriented content.
Expand new IP developments to 5 or more per year.
Achieve over 30% overseas sales ratio through global expansion.

Business Segments

Online Game Planning and Operation Support

Overview

Provides support services from planning and production to operation of online games, supporting diverse content deployments.

Competitiveness

Abundant operational know-how and collaborative strength from group subsidiaries

Customers

Game development companies
Major platform operators
Advertising agencies
Marketing companies
Publishing and media companies

Products

Game site construction
Operation system design
Content license management
Monetization support
User support

Digital Content Distribution

Overview

Deploys digital content distribution services including games and electronic publishing for smartphones and PCs.

Competitiveness

Unified management of diverse genre content

Customers

Smartphone carriers
App distribution platforms
Entertainment companies
Advertising agencies

Products

Game app distribution
Digital publishing
Content licensing
Online advertising

Competitive Advantage

Strengths

Game operation capabilities through diverse subsidiaries
Expertise in women-oriented content development
Broad content genre deployment
Superior location of head office in Minato-ku, Tokyo
Operations by experienced management team
Reliability of Tokyo Stock Exchange Standard listing
Long track record in online game operations
Stable internet service infrastructure
Comprehensive content development structure
Recognition in the entertainment market
Expansion through aggressive M&A strategy
Capability to address multicultural markets
Strength in participating from planning stage
Diverse sales channel network
Building of sustainable business model

Competitive Advantages

Brands specialized in women-oriented games
Ownership of diverse game IPs domestically and internationally
Rapid development through multifaceted subsidiary collaboration
Strength in both browser and mobile
Flexible operations adapting to market changes
Early entry into fitness games ahead of competitors
Online and real-world integrated content
Product lineup meeting diverse customer needs
Operational stability backed by experience
Establishment of long-term revenue models
Utilization and strengthening of broad sales channels
Digital and real fusion services
Maximization of synergy effects with subsidiaries
Differentiated services from competitors
Advanced products through introduction of new technologies

Threats

Risk of market share expansion by competitors
Rapid changes in smartphone game market
Shifts in game user preferences
Decline in capital efficiency due to ongoing net loss
Political and economic risks in overseas markets
Increased development costs accompanying technological changes
Operational risks from strengthened regulations
Impact of copycat content and piracy issues
Trend of younger generation moving away from games
Business environment instability due to COVID-19 pandemic
Intensifying competition for talent acquisition
Risks of platform dependency

Innovations

2020: Development of Fitness Game for Nintendo Switch

Overview: Entry into home console fitness games through the establishment of Exfit.
Impact: Successfully opened new markets and contributed to brand diversification

2022: Strengthening of Women-Oriented Romance SLGs by Subsidiaries

Overview: Advanced development of romance simulation games centered on Arismatique.
Impact: Achieved market expansion in specific user segments

2021: Consolidation and Restructuring of Multiple Subsidiaries

Overview: Implemented optimization to strengthen group collaboration and improve management efficiency.
Impact: Succeeded in reducing operating costs and promoting agile development

2023: Initiation of AI Utilization in Mobile Games

Overview: Introduced AI technology for in-game character behaviors and user support.
Impact: Achieved improved user experience and operational efficiency

Sustainability

Promotion of paperless operations in game development
Support for work-life balance among employees
Ongoing volunteer activities for local communities
Participation in digital health-related social contribution projects
Promotion of environmentally friendly data centers by subsidiaries
Promotion of women's empowerment and diversity
CO2 reduction through online events
Strengthening prevention of misuse and user security
Maintenance of transparent governance structure
Development of game content contributing to regional revitalization