© 2024 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
You don't have any saved screeners yet
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Thank you very much for your patience. Thank you very much for gathering despite your very busy schedule today. We would like to start Yahoo! Japan Corporation FY 2017 Third Quarter Business Results Presentation. We will be providing live play on the Internet, and also we will be able to provide this on demand later. I would like to introduce the participants. We have Mr. Manabu Miyasaka, President and Representative Director CEO; Mr. Toshiki Oya, Senior Executive Vice President, Corporate Officer, CFO. Firstly, Mr. Miyasaka will give the presentation, then the floor will be opened for Q&A. We plan to end this session at around 6:00 p.m. Please, Mr. Miyasaka.
I would like to walk you through the third quarter business results. Firstly, the consolidated results. Revenue was JPY 230.7 billion, plus 4.3% year-on-year; and operating income JPY 52.8 billion, plus 2% year-on-year; and also advertisement-related revenue was up 6.6% and also e-commerce transaction [ value ] increased by 14% year-on-year. Now Media business, the paid research or rather search advertising revenue grew more than 6% year-on-year. And also we started premium video ads for smartphone Yahoo! JAPAN top page, i.e. browsers in the end of last year. Commerce business wise. Shopping transaction value marked a record high, and also, credit card business is trending very favorably. This is the trend of the revenue as you can see. A breakdown of our revenue. This is self-explanatory. Operating income is as you can see on this slide. So what are the factors changing operating income. As compared to last fiscal year Q3, there was increase due to business growth and streamlining, up about JPY 8.1 billion. And so all in all, our operating income landed at JPY 52.8 billion. In terms of e-Commerce sales promotion activities, we spent about 50% for shopping and others are broken down into Membership services, Auction and Financial & Payment business. This shows the usage trend of services. Yahoo! must be used by the Internet participants, and so we need to increase the users and there are different [ things ] in which our services are being used. Regarding daily unique browsers, we recorded 89 million. And so it's about 90 million people accessing our service every day. So this is the level in which our service is being used. Smartphone is growing and you can see that the ratio of smartphone is increasing. And out of 90 million daily unique browsers, we are trying to move on to the smartphone, and you need to look at the traffic that we can track via the log-in mechanism. And so we are promoting log-in usage, and on a monthly basis, we have about 40 million people who are logging in using their user ID. And also in terms of traffic, we want people to use through the applications and also conduct a log-in using the user ID. So instead of the browser, we want the people to use more applications, year-on-year it increased by 24%, and about 42 million are daily active users of all applications. That is the growth in volume and improvement quality of the traffic and based on that, we are conducting advertising business. We have display and paid search breakdown as shown here. Smartphone advertisement is increasing 50% year-on-year, reaching the level of JPY 43 billion. What is our future? We want to emphasize video advertisements. We are enjoying growth in traffic, so we want to provide video as more than ever before. In FY '16 in March, we started in-feed video advertisement for applications and in the end of the year, we had the premium video ad for browser. And from the end of FY 2017 towards the beginning of FY 2018, we will have in-feed video ad for browsers. This is the plan. And then afterward, say around the mid- to the end of FY 2018, we want to provide premium video ads for application. So as compared to the end of FY 2016, we will have much video ads as our content. In December 2016 or rather 2017, we had launched our premium video ads for smartphone Yahoo! JAPAN top page. So this can be used for branding. Here onward I would like to talk about media that belongs to Media business. We need to extend video viewing time, and it grew by about 4-fold year-on-year. Other than smartphone, there are many people who use Yahoo! through PCs. And as compared to smartphone, our PC leverages on broadband 100%. And so we want the video. We are conducting different experiments. And on PC Yahoo! JAPAN top page, we added video tab. Through this -- in the past, the still image and the video were separated, but in this day and age, whether it be PC or smartphone, whether it be still image or video, they should be categorized as one, as if they are one category to be enjoyed. And so we will be providing more videos in the future. Okay. From now on let me talk about the Commerce business. When it comes to the Commerce, what's the most important measurement is that number of monthly paid membership IDs. How we can increase the number of these IDs. And, for example, in e-Commerce is now, but mainly led by the members of Yahoo! JAPAN, so that this number of the monthly paid membership IDs have grown by 25.11 million members, it had grown by 43% year-on-year. And based on this growth of the members and now when it comes to Shopping business, this had grown by 28%. So now we have JPY 180 billion of the business and particularly, we have set up this good shopping day in November. And so that's -- we have the spike of the sales growth of 46% year-on-year. So just like this, now we have more powerful selling of all of the e-Commerce capability. And now this is just about the spike, the snapshot of this [ forward ] momentum, but when you look at on a long-term basis, now, as I mentioned earlier, now this number of buyers is most important and also they have been growing. So this is really favorable for our business. So when we started our efforts of e-Commerce revolutions and first in the Q3 of 2013, when we announced that revolutions and at the time we have had negative transaction values. And [ we were the ] only player who had negative transaction values in all the players, but now, we would like to first focus on the number of sellers and number of merchandisers to be sold, and so that we can attract more buyers. So in the course of time, just like this, now we have become #1 of the number of sellers and we have become #1 of the product to be sold and also now we have more than double of the number of buyers. So now we are right on the [ top ] of scenario. The other point is that when you look at this end, deep color of this -- the graphics is the new buyers. So -- and now you can understand that this new entry of buyers have been growing steadily. And we have been implementing a lot of campaigns [ over ] the sales, not just like the good shopping day. So that all our efforts have delivered the goods. And now we're having a good cycle of attracting new buyers in the market one after another. Now when you look at the Yahoo! Shopping. Now we have more of the Premium members have become, that's the major portion of the buyers [ than currently about this ]. And the transaction value generated by Yahoo! Premium members now up to the 75%. So now it seems like that the Yahoo! Shopping site is that the membership-based shopping areas -- shopping site. So that's why -- and this is our marketing focus has been successful so far just like this. And one of the good example of success is that the SoftBank subscribers have not so much come to visit the Yahoo! Shopping site. But now SoftBank have implemented and provided more shopping points when they visit the Yahoo! Shopping site, and also with simply with a smart log-in and now all the smart bank subscriber can automatically be the members of the Japan -- Yahoo! JAPAN. So now it expanded more than 4x in a year when it comes to transaction value generated by SoftBank subscribers. But on the other hand, still we have a big leeway to grow further with big potential, so that out of the SoftBank mobile subscribers and for those who have set up this smart log-in, for which they can obtain a lot of advantages, only about 30% of that subscriber have set up the smart log-in [ follow this ] than the others, SoftBank subscribers go to the other shopping sites. So in here comes the huge potential of future growth of this. Although we have a growth of the transaction value, but still we don't charge any fees on that. So that's why we're [ keeping ] the importance of the advertising sales. But all this advertising revenues have been steadily growing by 32% year-on-year, and we come to that JPY 7.7 billion of advertising revenues of Shopping. And we also sometimes have a question that's now in view of the success of the Shopping site [indiscernible] 2 years for [ fightings ] and free of charge Shopping points. So then when you look at this, the red color line shows that this is the percentage of Shopping-related advertising revenues and point-reward expenses to also for the Yahoo! Shopping transaction values, and you look at this. Now advertising revenues have been really steady to this in the transaction values, and it's not that we just so much aggressively providing that [ large ] Shopping points. So that now we are getting, all the operations are getting really stable, we don't provide any so much out there providing and intentionally providing that Shopping points like this. Next, let me talk about Auction business. The same is true for the Auction and it had been expanding steadily. Now we have a JPY 257.8 billion in terms of the transaction values, and one specific effort is that Yahoo! Money system is widely used for expanding this usage of the Auction. The last of all, let me talk about a little bit about Financial & Payment business. When it comes to finance and the payments, and this is just illustration to outline a business. Now going through all these Shopping and trouble and Auctions and when you try to expand that transaction value of the Yahoo! JAPAN as a whole and had been very favorable about this. When daily users will make the payments, we will try to encourage them to use the Yahoo! Wallet as much as possible. So that we'll try to encourage them to use more of the Yahoo! Wallet. So not only for the share of the wallet, the Yahoo! Wallet, but also inside this wallet, and we'd like to encourage further for the users to use this, the Yahoo! Credit Card, Yahoo! Money instead of the other credit cards. So we call it in-house payment ratio. When you look at this, first of all, we've tried to grow this and the ratio of wallet-based payments. And also in this wallet, we will try to further push up and encourage this, the proportion of the payment made by this Yahoo! card and Yahoo! Money. And when you look at the growth of the Yahoo! Wallet, now we have close to 40 million IDs of the wallet accounts have been opened so far and on par with that's the monthly active IDs. Next, then what happens with this in the usage of the Yahoo! Wallets and those have been steadily growing and compared to the last year, it had been growing 16% year-on-year. Next talking about in-house within wallet, we have people using credit cards. And it shows YJ Card proportion of credit card, and it is growing by 1.5 fold year-on-year. Lastly, I would like to talk about Technology. In this day and age, say, if there are 100 people, 100 people will look at different information via the network. Having said that, what is the definition of good service? Service which is personalized and is in line with what you are looking for. So personalization is the key and the challenge, and that's time line and advertisement, e-Commerce, recommendation and recommendation of video and also recommendation of news. Those are the personalization services we are conducting using the personalized engine and the competitors are in the same boat. So all the companies that are trying to increase the accuracy of the personalized engines, so the right news, commerce, video and advertisement can be targeted towards the audience. And so on a global basis, we are in the race and competition of personalization. What is the energy for personalized engine. It's data. So you gather data and try to come up with the best personalization, so time line, e-Commerce recommendation can be the output that will be in line with the needs of individuals. So given that competition, what is our uniqueness? We do have the fuel/energy that is very diversified. In short, we enjoy energy mix. We refer to this as multi-Big Data. We have different advertisement, e-Commerce and news and video. And we try to gather information accordingly. And so this is not only involving, but also diversity of energy, and we have a centralized managed through our platform. And that is the unique nature that we enjoy vis-à-vis the others. So regarding the technology development in the future, we will like to maximize on the energy mix, i.e., increase the diversity and volume, and also come up with a personalized engine that can maximize on the energy mix we have. The current personalized engine that we have cannot really enjoy different combinations. So media is media, e-Commerce is e-Commerce. So there is a silo so to speak. So we want to challenge ourselves to come up with an engine that can mix and match different pieces of data that we gathered. So in long-term perspective, we believe that data is the core differentiator that we can use. Regarding the usage of data in the future, on February 6, Tuesday, we plan to have a media announcement. And so from IR website, you will be able to see the schedule. So I do hope that you will take a look at this announcement as well. Thank you. This is the end of my presentation.
[Foreign Language]
[Operator Instructions] Okay, those who are sitting in the middle of the last row, please?
[ Takeda of UB]. I'd like to just talk a -- make a question and that's about the change to management. And Mr. Miyasaka, and -- while you were in tenure and what was the most successful result you could have achieved as a President and CEO and what is that one you could not achieve and you could not fill up to your own expectations? The other one is that, now in replacement of senior management, there would be an opportunity for a change. And I think that this is that new management can do something new. So but now -- you have been working together with Mr. Miyasaka. And so but now and -- what would you like to change and I'd like to ask this question to Mr. Kawabe?
Okay. I think that's -- I don't want to praise myself so much, but one of the biggest success I could achieve is that's now -- although that Kawabe-san is sitting together, I am second generation of the President and CEO, and thus we need to -- the succession planning is very important, so that we can pass the torch on to the third and fourth President and CEO and now -- and we're [ setting for a very ] fast and the President and after this, going through the second and you can pass it on to the responsibilities to third and fourth and the company should grow. So that's why I have to educate and nurture and that is the younger next senior management, President. So in the sense that now Mr. Kawabe is 1 year younger now and -- when I became the President and also now we can have a more younger executive directors and senior management, so that I hope that's [ competitive ]. When I became the President, we don't -- we did not want to just make that replacement of the senior management. And as we were going, getting older or going to the opposite direction. But now we have been -- I have been successful in the succession of my management. But when it comes to I could not achieve what I had expected, there are a lot of challenges of this new CEO in other business areas. But I think that's on the other hand. And the services, which is -- and one of the services was transfer from PC to smartphone, but when it comes that anything that I could generate and develop, there's something brand-new only for the smartphone, which have never been in the usage in the PC, and we could not be successful so much. That's all. Thank you very much.
Okay. CEO, Mr. Miyasaka, and I have been working together with this CEO and also a one team and it has been 6 years and I could share [ never ] all this in the business development of the system and one of the -- which is transfer from the PC platform to the smartphone platform and in the past few years particularly, an explosive amount of Big Data, which accumulated in the Yahoo! JAPAN so far, and how we can take advantage of Big Data into our new business or that the energy for the new business or how we can turn in that Big Data into our own and the tools and advantages, and I would like to continue these efforts. And also we succeed the responsibility of the senior management, and we would like to become that data based -- Big Data-based companies. When it comes to my personal hope, I myself think that I have a very long experience in the Media business and particularly, and after the e-Commerce revolutions put into force, by getting [ involved ] in e-Commerce and also in the past year particularly, due to the guidance of Mr. Miyasaka, and I got deeply engaged in the e-Commerce business. So that's why I have experience in the Media and Commerce. So now we have a -- I could have -- I'm the only resource in senior management and using management and I have both -- experience in both of this e-Commerce and Media, so that I'd like to get them integrated more seamlessly from next year and then onward. And so far the Media and Commerce has been just growing -- and processed and growing separately, but now we'd like to get them integrated as a seamless business. And this is one area I would like make a challenge and at the same time, also would like to have -- because I have a closer and good relationship with SoftBank. So that's why I would like to take advantage of SoftBank's [ debt carrier's ] capability, so that we can have a good synergy with SoftBank capability and our capability. So we would like to have that unique and original, and this is one that I would like to establish, okay. Thank you very much.
[Foreign Language] Any other question, please raise your hand. Yes, person sitting in the front on the left, please.
I'm Yoneshima of Crédit Suisse. I have two questions. First one, it is about your performance results in Q3. Operating income, I think you were able to record high number. And you mentioned that you will be investing in different sales promotion, but it seems like you didn't. And due to the change in the management, was there any reason why you did not incur much cost in Q3? And I want to know whether you are going to use that budget in Q4 instead? That's question number one.
Firstly, ASKUL sold asset -- fixed asset, and the sales of fixed asset actually have contributed to the increase of operating income, about investment basically. Regarding e-Commerce transaction value, we want to increase it and maximize it, and investment to materialize on this is proceeding as scheduled. So we plan to spend about JPY 25 billion throughout the whole year, and we will be landing in that range. And also in terms of data investment, I said we will invest JPY 15 billion. And we try to look at the execution and try to make the investment more efficient. So against the plan, we are spending about 80% and that will be the range at which we will be landing. Therefore, of course, now you did not see that being registered in Q3. So for the full-year forecast, so it will be about JPY 185 billion, which is the maximum range that we have defined.
Second question about video ad. And you have delineated the time line. And we can see the future landscape, but what will be the growth of advertisement in percentage by implementing video ad? How much did you factor in, in terms of the future growth of your advertisement business? If you have any outlook, would you please share that with us?
Please.
Well, regarding the momentum, in the next fiscal year, we will be launching premium video ad. We don't have such a spot now, and we are going to create a new spot for premium video ads. So that will purely be an addition. And so it will be in the magnitude of JPY 1 billion to JPY 10s of billion business scale wise. About in-feed, we will be changing banner into video. So there will be negative on banner and positive on video. So the delta will be the contribution. So it's not pure increase, but since video is rich and the unit price is higher than banner, so that difference will be the additional positive impact for us. And in terms of video ad, the price is higher than other form of advertisement. So we hope that we will be able to maximize on it.
Any other question? Yes, please.
[ Modi ] from JP Morgan Securities. I have two questions. My first question is when it comes to e-Commerce Shopping business and now after you've experienced the year-end shopping season, that you initially had a forecast of about 30% growth not only for this year, but also the years to come, but after you have experienced that last year-end shopping season. Now are you confident to achieve that 30% growth strategy? And can you achieve that? And simply an extension of the current strategy or you needed to implement another brand-new strategy or any actions?
But this is about the year after this year, so that do you have any comments, Kawabe-san?
Yes. And we could achieve what we have had expected on forecast and also for the next year, also that we -- as we explained, we still have a potential to go further next year and onward. So we are going to have, for example, we worked together with subscribers of the SoftBank, and we having more of the users are within the use, and it's still that we have the huge potential for the grow of that SoftBank subscribers to -- the potential to use more on our e-Commerce. But our target is to become #1 in the domestic e-Commerce market. So that's why current action is not enough. We have to just implement any new actions one after another. Although I cannot be so specific today, but anyway I would like to make a lot of new challenges and even after next year.
Okay. My next question is also for the future. So that I would also like ask to Kawabe-san. And when you have a media meeting and you would like to just focus more on the fintech, including the payment business, but when it comes to the fintech, I want your specific ideas or strategy for this financial areas? And you also were talking about wallet that how you like to expand that to your domain of your own business and to this new areas and financial business and also for the next year? And when it comes to the fintech and -- do you think are you going to more aggressively invest in this fintech area next year?
Well now, also -- and as we mentioned today's presentations, and we have close to 40 million users in Yahoo! Wallet. And so these are [ all the ] payments and on the [ next ]. And how we can just make this into the net -- the net payment into the more real payments and Alipay or Tencents, they're just -- who are offering mobile payments, and they have grown in a similar scenario. So that's why this isn't one of the scenario we'll -- also we'll like to follow. So that when it comes, the fintech will be one of that extension of the current payment business. And only just we're going to start it next year, but we already have made starting the investments in this area. So, for example, we already had met and announced this year and JNB, we can [ consolidate debt ] and also this is the product of investment transfer funds. So far it was distributed by the regional financial institutions, but now we are starting to providing that as investment trust funds, products on the Internet. So that's why we haven't gradually expanded in the distributions. And we'd like to -- we'll keep making the similar efforts and actions also in the next year. And yes, when it comes to fintech, we are still into that investment phase. Yes, that's right. Okay, thank you.
[Foreign Language] Any other question, please raise your hand. Person wearing blue necktie, please?
I am Nagao of Nomura Securities. I have two questions. Firstly, you mentioned about SoftBank user who has ID linkage, but then the usage rate is still low. Regarding that category, how do you plan to increase the usage? So please tell me your measures that is under plan. Second question...
Would you please ask one question at a time?
Sure.
Through point-reward program, we are providing benefits to the customers. But individual has different needs. So some people will be attracted to the benefits of the point-reward program, but others will not be. So as mentioned by Mr. Kawabe, we will be implementing different measures. Today, I cannot give you any concrete definition of what kind of measures we will be implementing. But we know that we have the market, and we will be able to reach those audience. So how we are going to tap on the potential of the audience? We went through different error -- trial-and-error staging. We will continue that path. Thank you.
Second question?
I want to know the details about performance results? In terms of Media business, the operating income is more than 60%. And as compared to the past trend, I believe that this operating income ratio is very high. And why is that the case?
Regarding Media business, the COGS actually went down. Yahoo! Inc. had the APS fee that we had to pay too, but with the advent of the rise, we do not have to pay that fee. Therefore, in terms of Q3 and Q4 of this fiscal year, there will be the impact of that payment that we no longer have to make. Therefore, Media business COGS went down and will go down in Q4 as well. We have the search deal with Google. APS fee will be eliminated. And we already factored that in, in signing contract with Google. So in the middle of fiscal year, APS went down and that contributed to the decline of COGS, and this is a one-off event.
Another question?
[Foreign Language] Okay. So Miyasaka-san, since you joined the company, we've seen a very big increase in your share price. And the company has kept pace with Google in the face of a lot of competition, which is something I think very rare around the world. So I would like to hear in your experience at Yahoo! JAPAN, what are the key strengths that this business has to enable this kind of performance in the last few years, please. [Foreign Language]
Well, I never thought along that line. Let me think about it. I think it's the company culture that plays an important role, say, Yahoo! Inc. toward the end of its history, it seems that they were not very energetic and I was wondering why my counterparty at Yahoo! Inc. is changing. So even though you have great strategy and great leader, unless you have the great team, you will not be able to operate in an efficient manner. So regarding company culture, it's very difficult to measure its performance year-on-year or try to evaluate as external party's evaluation, is what I believe that company culture, which I did not create, but the past president created, contributed to the growth of our company.
The one thing that surprised me over the last few years is that you didn't choose to buy back your shares from Yahoo! Inc. Recently, there are some quite big changes in terms of U.S. tax agreements. So maybe it's difficult for you to comment directly, but does this change the kind of thinking about the shares that are held in out other? [Foreign Language]
Well, our stance hasn't changed. So I will repeat what I've been saying before. There are various options. So we will look at each and every option. Therefore, at this point in time, there is no information that I can update you on.
[Foreign Language] Would you please raise your hand if you have any other question, please? One is who wearing the striped necktie, please?
I'm Araki of Mitsubishi UFJ Securities. First one and that you have been [ affected by the ] business where is that the paid search business and including the PC, smartphone. And would you please like to talk about your possibility and prospect of the sustainability of current momentum?
Yes, in this Q3, we could just have exceeded our expectations or forecast this year in Q3 and major factor was that no IJ paid search offered in PC and we improved the UI. And now we have -- we could improve the business and also this is the major reason I think. So also we could expect the same effect also in the first half of next year. Thank you.
My second question is that, in the presentation materials, the percentage of the -- and based on the shopping points and this is the cost of the points of the share of the -- cost that is shared by your tenants and this is not a gross share, but also this is just a cost on the accounting basis. But when it comes to the total growth, cost of goods, cost of the points also you have shared with the tenants. And do you have any the statistics or the figure of that point? To put it in another way, now you think that's the rate of this point of decline. But I still have some difficulty in understanding clearly, so that's why -- and we think that the points ratio will go down and the incentive will also go down. Would you be a little bit specific about this?
Yes, you are right. And part of the point cost are shared by tenants partially, but when it comes to the -- there is no any difference in this -- the percentage of the share with tenants. And -- but year-on-year and compared to the last year and last year, we have provided 10x more points provided to the Premium members. But this year, going through the trial and errors and we have just adjusting and maximized that -- the point provision policies. And this is a result of this, our efforts. That's right.
[Foreign Language]
Any other question, please raise your hand. On the very right, wearing gray jacket.
I'm Haruyama, Macquarie Securities. I have one question. At this timing, you announced the change of the management. And what was the triggering point? And why did you decide on this timing in changing the management?
Well, there is no one particular trigger per se.
Why did you decide on this very timing?
I thought that this is the very optimal timing. And if you ask me what it was the last year or next year, but I guess, this is not a bad timing. Well, let me think. So if the performance is low, then it will be difficult to change the management. But then, we are not in a very bad situation. And last year, we worked on e-Commerce. So we are striking balance between different businesses. So we factored in different elements and decided that this might be the right timing to change the management.
Any other question, please raise your hand, please. Okay. So the one who is wearing white shirts, in the -- second from the right, please.
I'm Maeda from SMBC Nikko Securities. I have two questions. My first question is that, let's say, aggressively utilized the data. And you have already implemented some kind of in-feed trial. And you explained about in the last meeting that you -- so that I would like to know about in which KPI that your efforts on that the data have contributed to? Then the -- when one can expect the specific results of that -- the data? Weighted efforts and the actual business performance.
Yes. Well, some of the specifics is just obvious in actually using the personalized engine already. And so now it's growth of the daily unique browser and the growth of the EC advertising revenues. And -- but all these, there is an actual business performance and this quarter already had been supported by that active utilization of the data. For example, time line advertising on the top page and for example -- and we don't change so much earlier. But now we have more viewers get access to top page, because now -- and we already have started using that personal engines and making better recommendations, hence we can have more traffic on our top page. So improvements in the data process and utilization is that sometimes something brand new comes out. But some of that current operations or service can be -- can provide a better quality. So it's not so much flashy results, but [ still ] has been supported by the data utilizations. But once we have triggered that mechanism the database, the personalizations, and we can make better recommendations and we can have more traffic and we have more data and we can have more good Big Data and then we can provide better recommendation again. So we can get in that kind of a very good cycle. And so that's why it's sort of is an infinite cycle of the improvements of the data and business. We already have been in the cycle.
My second question is, after you become the CEO and you mentioned that your mission is that to substantial growth of the profit. But in the middle of your tenure, you make a lot of that upfront investments for the future growth, but now in this replacement of the senior management and in the next management, again, would like to focus on that expansions and growth of the profits or you still -- this investment phase will still continue even after the new senior management?
Yes, now. First of all, I would like to have a better succession to the new team and then also -- and now that we have a new management. And I'd like to build up the new midterm business plan and reviewing what I have done and also they have to come up with all new ideas and then kind of sort of inventory of business activity that pass is very important. So that's a -- I don't explain so much specific today. But we're going to do that.
[Foreign Language]
Any other question, please raise your hand. Yes, person sitting at the very front wearing a blue shirt.
I am Sawada of [ ACE ] Research Institute. I have one question to Mr. Miyasaka. Yahoo! is a blue chip company and you have been managing it for years. And I'm sure that you have your own philosophy in executing on your plan. And you need to cascade that to your team members. And what did you bear on your mind to cascade your points of view? And what were the elements that you took care of so that you can materialize on your vision?
Well, I never really thought along that line. You need to listen to your team members. And I think it is very important instead of just unilaterally giving instruction or command, but rather I believe it is important to listen to others. And when we have a meeting, I love to talk, I tend to talk 80%, but instead, I try to shift that into 20% instead of 80%, and I don't know whether I was successful or not, but I try to listen to others.
A second question. On Page 22, you have a video viewing time. From the second quarter, it seems that there is a decline and in terms of Q3, you have the end of the year. So I thought that there will be more people viewing longer time. And so can you explain to me why it did not grow as I have expected? I know that you have launched different campaigns.
Regarding Media business, generally speaking, Q3 wise traffic goes down. Q2 and Q4, say, there might be storm, there might be sports events, but in Q3, there is no sports events. Therefore, all in all, usually in Q3, the traffic goes down. And along with that, the viewing of video went down slightly. So this is business as usual. So we are not concerned about this trend. I'm sure that we will be able to boost up the viewing time in Q4, again. Thank you. Any other question?
Any other questions? All right. Okay. Thank you very much. That's all for this -- the meeting for the business performance meeting. And thank you very much for joining us today. Thank you very much.
Thank you.