TOKYO, May 15 (Pulse News Wire) – Digital Plus,inc. (3691.T) announced today that its board of directors, held , decided to withdraw from its digital marketing business and the online tutoring service “Peace,” operated by a subsidiary.
The withdrawal is part of the company’s strategy to concentrate resources on fintech operations. In recent months, Digital Plus has seen significant growth in circulation volumes, achieving monthly circulation of ¥3.500 billion and total circulation of ¥25.00 billion for the current fiscal period. Additionally, the company expects continuous quarter-on-quarter growth through the next two quarters. With this progress, Digital Plus plans to accelerate resource allocation towards fintech, aiming for a total circulation volume of ¥100 million by 2028. As part of this realignment, the company will completely exit the digital marketing and online tutoring businesses to streamline its focus on fintech.
The decision follows the acquisition of the Peace tutoring service in July 2023 for a price of ¥1. While the initial goals of tax benefits and operational synergies have largely been achieved, the impact of the tutoring business on the overall group remains limited. Regarding the financial impact, Digital Plus reported a loss of ¥79.8 million due to the withdrawal of the Peace tutoring service during the current fiscal year ending September 30, 2026. However, there will be no additional cash outflows, and tax benefits have already been realized. The company is currently evaluating whether these businesses should be classified as discontinued operations, which could improve operating profit by approximately ¥100 million in either the third quarter or the full-year results for the fiscal year ending September 2026.
Digital Plus stated that the impact on the current fiscal year's performance is expected to be minor based on the current assessment.
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