business results for 3q fiscal year september 2015©septeni holdings co.,ltd. all rights reserved. 4...
TRANSCRIPT
Business Results for 3Q Fiscal Year September 2015 July 30, 2015
SEPTENI HOLDINGS CO., LTD. http://www.septeni-holdings.co.jp/en/ Securities Code: 4293
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Index 2
1. Quarterly Consolidated Earnings Overview
5. Appendix
2. Internet Marketing Business
3. Media Content Business
4. 1Q-3Q FY9/15 Consolidated Earnings and 4Q(Full Year) Earning Estimates
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3
1. Quarterly Consolidated Earnings Overview
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3Q(Apr-Jun)Consolidated Earnings Highlights 4
Net Sales: ¥16,588mn(Up 22.1% year on year)
¥755mn(Up 84.1% year on year) Consolidated results
Internet Marketing Business
Media
Content
Business
Both Net Sales and Operating income reached
new record highs on a quarterly basis.
High growth was achieved in key businesses focused on “Mobile,” “Social,” and “Global.”
Upfront Investment in the Manga Content Business is continued.
Operating income:
Net Sales: ¥15,910mn(Up 32.1% year on year)
¥981mn(Up 77.0% year on year) Operating income:
Net Sales: ¥750mn(Down 14.6% year on year)
Operating income: ¥-133mn(Down ¥29mn year on year)
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Consolidated Income Statement(Apr-Jun)
3Q FY9/15 3Q FY9/14
Value Share YY
Change Value Share
Net Sales 16,588 100.0% +22.1% 13,580 100.0
%
Gross Income 3,052 18.4% +24.2% 2,458 18.1%
SG&A 2,297 13.9% +12.2% 2,048 15.1%
Operating Income 755 4.6% +84.1% 410 3.0%
Ordinary Income 802 4.8% +100.7% 399 2.9%
Net Income 481 2.9% +20.6% 398 2.9%
3Q FY9/15
Estimate
15,800
―
―
460
470
310
5
EBITDA 858 5.2% +74.4% 492 3.6%
(units: ¥mn)
The growth rate in net sales reached the 20% range for the first time in five quarters, driven by significant business expansion in the Internet Marketing Business.
Operating income was up 84.1% year on year, achieving significant growth in profit thanks
to the impact of higher sales. This profit growth absorbed the increase in SG&A, which largely
stemmed from the labor expenses of hiring 104 new graduate employees throughout the
entire group.
※ EBITDA = Operating Income + Depreciation and amortization + Amortization of goodwill
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8,355 8,636 9,0669,970 9,980 10,441
11,044
12,64112,048
12,53813,299
14,615
15,910
1,0921,088
940
894 889990
873
855879
849
794
953
750
929 775912
718 696595
671
811
715668
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2012/9期 2013/9期 2014/9期 2015/9期
6
Internet Marketing Media Content
15,495
10,365 10,478 10,891
11,566 11,552 11,971
Quarterly Consolidated Earnings Trend
12,532
14,246 13,580
13,985 14,026
Net Sales reached a new record high on a quarterly basis. Net Sales (by Business Segment)
(¥mn)
Others (Direct Marketing ,etc.)
16,588
*Because the net sales of each business include inter-segment sales, the total net sales of each business do not match the consolidated net sales (underlined figures).
FY9/13 FY9/14 FY9/15 FY9/12
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3.0%3.4%
2.7%
4.2%
2.8%
4.2%5.5% 4.3%
3.0%
4.0%
3.1%
4.0%4.6%4.6%
270
432 423
567
443
581
793
682
554
709 691
830
981
55
-44 -107
-34 -60 -16 -42 -35
-104 -95 -155 -118 -133
44
27 39
44
41
35
36
60
50
39
-60 -63
-65
-98 -101
-100 -105 -96
-90 -97
-105 -95 -92
-300
0
300
600
900
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2012/9期 2013/9期 2014/9期 2015/9期
7
616
310
290 351
479
323
682
499
611
410
429 555
Operating Income reached a new record high on a quarterly basis.
(¥mn) 755
Quarterly Consolidated Earnings Trend
Adjustment (corporate expenses, etc.) Others(Direct Marketing ,etc.) Media Content Internet Marketing
Operating Income (by Business Segment)
FY9/12 FY9/13 FY9/14 FY9/15
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1,270 1,281 1,327 1,2671,368 1,335 1,388 1,385
1,507 1,471 1,475 1,5361,644
23 3436
36
37 4032 32
3228 62
61
61571 560 523
419
448 440474 487
508 532566
586
590
0
500
1,000
1,500
2,000
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2012/9期 2013/9期 2014/9期 2015/9期
Quarterly Consolidated Earnings Trend 8
2,048 2,033 2,103
1,887
1,722
1,854 1,817 1,895 1,905
2,297
1,865 1,877
Labor cost increased due to hire 104 new graduate employees.
(¥mn) 2,184
SG&A
Labor costs Amortization of goodwill others
FY9/12 FY9/13 FY9/14 FY9/15
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9
2. Internet Marketing Business
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Internet Marketing Business Earnings Overview
3Q FY9/15 3Q FY9/14
Value Share YY Change Value Share
Net Sales 15,910 100.0% +32.1% 12,048 100.0%
Gross Income
2,793 17.6% +36.2% 2,051 17.0%
SG&A 1,812 11.4% +21.1% 1,497 12.4%
Operating Income
981 6.2% +77.0% 554 4.6%
10
Substantial growth in smartphone advertising caused its share to rise to 66%.
There was also an acceleration of growth in the Social Media and Global Business.
(units:¥mn)
Advertising by online service providers in Japan and overseas grew. The business expanded further than initially forecast, and the growth rate in net sales reached a record high of 32.1% for the current segment.
The higher sales absorbed the increase in SG&A of hiring 87 new graduate employees. The segment achieved significant growth in operating income of 77.0% year on year. The operating margin also reached a record high of 6.2% for 3Q.
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Internet Marketing Business Quarterly Earnings Trend 11
(¥mn) (¥mn)
12,048 12,538
13,299
14,615
15,910
2,051 2,225 2,338 2,527 2,793
17.0%17.8% 17.6% 17.3%
17.6%
5.0%
10.0%
15.0%
20.0%
25.0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
14/3Q 14/4Q 15/1Q 15/2Q 15/3Q
売上高 売上総利益 売上総利益率
554
709 691
830
981
4.6%
5.7%
5.2%
5.7%
6.2%
0.0%
2.0%
4.0%
6.0%
0
200
400
600
800
1,000
14/3Q 14/4Q 15/1Q 15/2Q 15/3Q
営業利益 営業利益率
Net Sales Gross Income
Both net sales and gross income
reached new record highs. Operating income hit
a new record high. Operating Income
Net Sales Gross Margin Gross Income Operating
Income Operating Margin
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(百万円)
This growth was driven by the expansion of the lineup of native advertising products.
Key Business Focus (1) — Mobile 12
Sales were around 1.7 times the level one year ago and broke the ¥100bn barrier.
6,1466,720
7,455
8,542
10,513
51.0%
53.6% 56.1%
58.5%
66.1%
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
14/3Q 14/4Q 15/1Q 15/2Q 15/3Q
ネットM事業における構成比
66.1%
Main business media Smartphone Advertising Sales Trend
Share of Internet
Marketing Business
(¥mn)
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1,4931,658
2,296 2,335
3,047
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
2,800
3,000
14/3Q 14/4Q 15/1Q 15/2Q 15/3Q
Key Business Focus (2) — Social
Ad
vertis
ers
Consigned Operations
Page Creation
Septeni Media
Advertising Sales
Social media advertising operation
optimization tool
13
Facebook advertising remained firm in Japan and overseas.
etc
Rose 2.0-fold
year on year.
The growth of Twitter ad accelerated, and net sales of the Social Media
Business rose approx. 2.0-fold year on year.
(¥mn)
(Aggregate of sales in Facebook, Twitter, and LINE)
Social Media Business Sales Trend Business Model
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Key Business Focus (3) — Global 14
Japan
Asia
(百万円)
Sales rose about 2.4 times year on year, with strong growth in billings in North
America and Asia.
1,1221,312
1,710
1,263
2,657
9.3%
10.5%
12.9%
8.6%
16.7%
0
300
600
900
1,200
1,500
1,800
2,100
2,400
2,700
14/3Q 14/4Q 15/1Q 15/2Q 15/3Q
ネットM事業における構成比
Advertising of large-scale projects expanded, and the number of customers also increased.
Overseas sales Trend Business model
Operating out of sales bases in four locations overseas with a cross-border trading system established for Internet advertising
Share of Internet
Marketing Business
United States and Europe
London
Singapore
Seoul
San francisco
(¥mn)
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15
3. Media Content Business
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Media Content Business Earnings Overview
3Q FY9/15 3Q FY9/14
Value Share YY Change Value Share
Net Sales 750 100.0% -14.6% 879 100.0%
Gross Income 327 43.6% +4.6% 313 35.6%
SG&A 460 61.4% +10.4% 417 47.4%
Operating Income
-133 -17.8% (-29) -104 -11.9%
Despite solid growth of the mobile game, KINGDOM –Eiyuno keifu–, the net sales of Axel
Mark decreased because no new titles were released.
The Manga Content Business started to commercialize its own intellectuall property.
On the other hand, Operating losses associated with new businesses amounted to ¥125
million, due to continued upfront investments for the cultivation of Manga artists and the
enhancement of the distribution service.
16
(units: ¥mn)
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-13
1
-30
7 -1
-85 -92
-120
-120 -125
-5 -4
-4
-5 -5
-160
-120
-80
-40
0
40
14/3Q 14/4Q 15/1Q 15/2Q 15/3Q
既存事業 新規事業 連結調整
Media Content Business Quarterly Earnings Trend 17
-118 -95 -104 -155
(¥mn) (¥mn)
879849
794
953
750
313294
258
341 327
35.6%
34.7%
32.6%
35.8%
43.6%
25%
30%
35%
40%
45%
0
200
400
600
800
1,000
14/3Q 14/4Q 15/1Q 15/2Q 15/3Q
売上高 売上総利益 売上総利益率
-133
Net Sales, Gross Income Operating Income
Existing business
New business
Consolidation adjustment Net Sales Gross Income Gross Margin
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Mobile Game Business Overview 18
©原泰久・集英社/NHK・NEP・ぴえろ ©DeNA Co., Ltd. All rights reserved. / Developed by AXEL GameStudio Inc.
KINGDOM –Eiyuno keifu– showing strong growth
The first investment was made by the LLP company, which was established for the purpose of investing in and cultivating smartphone game development companies.
Ranks in the top 35 for App Store sales (June 30, 2015)
(2015年6月30日)
©YASUHISA HARA, SHUEISHA/NHK,NEP, PIERROT ©DeNA Co., Ltd. All rights reserved. / Developed by AXEL GameStudio Inc.
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0
50
100
150
7月 10月 1月 4月 7月
2014年 2015年
Manga Content Business Overview 19
Musashikunn to Murayamasann ha tukiattemita was published.
156
topped 1,500,000
© Ai/ COMICSMART INC. 2015
© Naruasuku / COMICSMART INC. 2015
The book Million Doll was published, and TV anime began
broadcasting on July 6.
The number of monthly PV for GANMA! topped 300 million (July 2015).
Accumulated application
downloads of GANMA!
(ten thousand DL)
Apr July Oct Jan
¥ July
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20
4.1Q-3Q FY9/15 Consolidated Earnings and 4Q(Full Year) Earning Estimates
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Consolidated Income Statement (Oct-Jun)
1Q-3Q FY9/15 1Q-3Q FY9/14
Value Share YY Change Value Share
Net Sales 46,110 100.0% +14.2% 40,360 100.0%
Gross Income 8,386 18.2% +11.0% 7,552 18.7%
SG&A 6,585 14.3% +12.6% 5,848 14.5%
Operating Income 1,801 3.9% +5.7% 1,703 4.2%
Ordinary Income 1,997 4.3% +12.2% 1,779 4.4%
Net Income 1,948 4.2% +64.0% 1,187 2.9%
1Q-3Q FY9/15
Estimate
45,322
―
―
1,506
1,664
1,776
21
EBITDA 2,102 4.6% +8.6% 1,936 4.8%
With higher operating income in the Internet Marketing Business, an increase was posted for consolidated operating income.
(units: ¥mn)
Net income grew significantly, given extraordinary income as a result of the sales of the Direct Marketing Business subsidiary.
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+
Year on Year Growth Rate in Consolidated Operating Income on a Quarterly Basis 22
Starting from a loss in FY9/15, improvement progressed to mark a significant increase in operating income in 3Q.
-37.1%
+0.9%
+84.1%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
15/1Q 15/2Q 15/3Q
営業利益の変化率
+84.1%
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2,030
2,502
-181-407
147
-292-294
-1,000
0
1,000
2,000
14/3Q累計 15/3Q累計
35,733
43,825
2,609
2,498
2,198
0
10,000
20,000
30,000
40,000
14/3Q累計 15/3Q累計
Earnings By Business Segments (Oct-Jun) 23
-4.2%
+22.6%
+23.3%
(-225)
(¥ mn) (¥ mn)
Net Sales Operating Income
Adjustment (corporate expenses, etc.) Internet Marketing Media Content Others(Direct Marketing ,etc.)
1Q-3Q FY9/14 1Q-3Q FY9/15 1Q-3Q FY9/14 1Q-3Q FY9/15
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4Q (Full Year) FY9/15 Consolidated Earnings Estimates
Earnings in FY9/14
Earnings Estimates for FY9/15
Expected growth
rate (Full Year)
Earnings in 1Q-3Q FY 9/14
Earnings in 4Q
FY9/14
Earnings in 1Q-3Q FY9/15
Earnings Estimates
for 4Q FY9/15
Net Sales 40,360 13,985 54,345 46,110 18,000 64,110 +18.0%
Operating Income
1,703 555 2,259 1,801 900 2,701 +19.5%
Ordinary Income
1,779 582 2,362 1,997 900 2,897 +22.6%
Net Income 1,187 361 1,549 1,948 570 2,518 +62.5%
24
The Internet Marketing Business is expected to achieve growth in both sales and income.
(units:¥mn)
As net income increases, the dividend will be increased for three consecutive years.
All indicators are expected to reach record highs in the full year, with double-digit growth in operating income.
Dividend Per Share
¥9.0 ¥14.0 +55.5%
The Media Content Business is expected to record lower sales and greater losses, reflecting the fact that there are no new games to be released as of this time as well as the continued upfront investment in the Manga Content Business.
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[Reference] 4Q(Jul-Sep) FY9/15 Earnings Estimates by Business Segment 25
Operating Income
Earnings in 4Q FY9/14
Earnings Estimate for 4Q FY9/15
YY Change
709 1,138 +60.3%
-95 -138 (-42)
39 - (-39)
-97 -100 (-2)
555 900 +61.9%
Net Sales
Earnings in 4Q FY9/14
Earnings Estimates for 4Q FY9/15
YY Change
Internet Marketing Business
12,538 17,340 +38.3%
Media Content Business
849 735 -13.4%
Other (Direct Marketing)
668 - (-668)
Elimination or corporate
-71 -75 (-3)
Total 13,985 18,000 +28.7%
(units:¥mn)
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Midterm Business Policies 26
ソーシャル グローバル Global
Concept
Social
Mobile
Business Focus
Increase the share of highly profitable businesses
Create a mainstay business second to advertising
“Double profits”
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
All estimates, opinions and plans provided in this document are based on the best information available at the time of the creation of this document on July 30, 2015 and we do not guarantee their accuracy. Therefore our actual results may differ due to various unforeseen risk factors and changes in global economies.
Contact Information
SEPTENI HOLDINGS CO., LTD. http://www.septeni-holdings.co.jp/en/ Corporate Planning, IR Division TEL: +813-6857-7258 E-mail: [email protected]
Thank you for your interest!
27
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28
5. Appendix
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Company Overview
29
Company Name SEPTENI HOLDINGS CO., LTD.
Representative President and Representative Director Koki Sato
Headquarters Sumitomo Fudosan Shinjuku Grand Tower, 8-17-1 Nishishinjuku, Shinjuku-ku, Tokyo
Securities Code 4293 (JASDAQ)
Business Realm The holding company for a group of companies conducting primarily Internet-related and other businesses
Established October 29, 1990
Capitalization ¥2,067 million
Shares Issued 27,696,400 shares (Including 1,784,600 treasury shares)
Consolidated Workforce
862 full time employees, 1017 full time and contracted employees
As of June 30, 2015
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30
Holding Company
SEPTENI HOLDINGS CO., LTD
SEPTENI VENTURES Co., Ltd.
SEPTENI CO., LTD Internet ad agency/Providing assistance for overall promotions on internet
Septeni America, Inc. Internet marketing business for North America region
MANGO Inc. SEM Operation Business Septeni Europe Co.,Ltd Internet marketing business for Europe region
Vasara Inc. Internet ad agency SEPTENI TECHNOLOGY CO., LTD. Web service development
HighScore, Inc. Social Media Marketing Support Business
JNJ INTERACTIVE INC. Internet ad agency in South Korea
EAGLE i Co., Ltd. Advertising Network Business SETPENI CROSSGATE CO., LTD. Ad Network and Platform Business
Septeni Original,Inc. Planning and developing its own services
ASP CO., LTD. e-marketing solutions
Septeni Asia Pacific Pte. Ltd. Internet ad agency in Asia and Pacific Ocean region
Tricorn Corporation CRM Service Business
New Business Development
Internet Marketing Business
Media Content Business
AXEL MARK INC. Mobile Content Business ViViVit, Inc. Matching-type recruitment platform
COMICSMART Inc. Manga Content Business gooddo, Inc. Platform business of social contribution
July 30, 2015
Main Group Companies by Business Segment
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Business Model for the Internet Marketing Business
31
Comprehensive Marketing Support Services for corporations leveraging the Internet.
Internet advertising sales and provision of various web solutions, We will provide In-House Services
such as marketing platforms including an ad network and cloud-based CRM services.
Clients
Internet Marketing Business
Advertising Agency Sales
Web Solutions
In-House Services
• Website creation, operations
• Creative • SEO • Social media creation, operations
• Cloud based CRM Systems
• Advertising platforms • Effectiveness measurement
• Internet media
etc
etc
Users
Internet Media Advertising
Sales
Solution Provision
Service Provision
Advertising Purchases
Advertising Distribution,
Display
Campaign Implementation, Operation, Effectiveness Measurement
Information Dispatch
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
The Media Content Business plans and develops digital content, including social games,
primarily for smartphones, and provides it to users through SNS, the application market, and
other platforms.
Copyright Owner
Sourcing
Provision Distribution Users
SNS Application
Market Communications
Carriers
Media Content Business
etc
• Music • E-Books • Streaming Video • Fortune Telling
Business Model for the Media Content Business 32
Manga Artists Cultivation
Providing Works
Distribution
Mobile Game Business Content Business
• Social Games
• Native Applications
Manga Content Business
Management of Manga Artists
Manga Distribution Service
The business also develops and produces Manga artists and distributes Manga works, aiming
to plan and develop our own intellectual property.
©SEPTENI HOLDINGS CO.,LTD. ALL RIGHTS RESERVED.
Consolidated Balance sheet 33
End 3Q
FY9/15
End 2Q
FY9/15 Change Main Changes
Current Assets 20,620 19,494 +1,126 Cash and deposits:+731
Notes and accounts receivable-trade:+403
Non-current Assets 3,119 3,192 -72 Goodwill:-59
Total Assets 23,740 22,686 +1,054
Current Liabilities 11,633 11,055 +578 Accounts Payable:+728
Unpaid taxes:-292
Non-current Liabilities
201 241 -40 Long-term loans payable:
-41
Total Liabilities 11,835 11,297 +538
Total Net Assets 11,905 11,389 +516 Retained earnings:+481
Total Liabilities,
Net Assets 23,740 22,686 +1,054
(units:¥mn)
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Consolidated Cash Flow 34
3Q FY9/15
(Apr-Jun) Main Changes
3Q FY9/14
(Apr-Jun)
Cash Flows from Operating Activities 610
Net income before taxes:+831
Increase in accounts payable:+728
Corporate and other taxes:△622 59
Cash Flows from Investing Activities 62 Sales of investment securities:+58 △99
Cash Flows from Financing Activities 42 Increase in loans payable:+43 94
Effect of Exchange Rate Changes on Cash and Cash Equivalents
10 △4
Net Increase (Decrease) in Cash and Equivalents 725 50
Cash and Equivalents at Term End 10,466 6,779
(units:¥mn)
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550 567 571 574 663 666 664 668
755
186 177 161 163
183 190 184 179
180
29 27 27 27
29 28
69 67 67 67
73 71 73 75
82
0
200
400
600
800
1000
13/3Q 13/4Q 14/1Q 14/2Q 14/3Q 14/4Q 15/1Q 15/2Q 15/3Q
35
834
838
826
831
948 955 921 922
ネットマーケティング事業 メディアコンテンツ事業 その他 持株会社
SEPTENI Group Workforce Number Trend
1,017
Internet Marketing Business Media Content Business
Others
Holding Company