Investing in Japan: Ateam takes advantage of a growing bicycle boom in Japan after COVID 19

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Ateam engages in entertainment business, lifestyle support business, and EC business

Ateam inc., founded in 2000 with its headquarters in Nagoya City, Aichi Prefecture, is an IT company that operates price comparison websites for various services needed in daily life and provides games and useful tool applications for smart devices such as smartphones and tablet devices. Ateam engages in three domains of business which are "entertainment business", "lifestyle support business" and "EC business". 

In entertainment business, the company plans, develops and operates games and useful tool applications for smart devices such as “Hatsune Miku – Tap Wonder”, a new smartphone game starring the Virtual Singer Hatsune Miku and　 "Revue Starlight", a smartphone game that started as a musical and was followed by a hit anime series, and “BASSA WARRIORS”, a battle RPG where players engage in heart-pounding combat in an expansive fantasy setting. 

In the entertainment business, game applications for smart devices are provided to people all over the world through dedicated distribution platforms such as the App Store operated by Apple Inc. and Google Play operated by Google LLC. The game app itself is basically provided free of charge, and the main sales are derived from the purchase price of in-game items for users to advance the game more efficiently and superiorly. In recent years, it has set a medium- to long-term policy of providing digital distribution of not only smartphone games but also PC games and home video games in Japan and overseas aiming for further growth. 

As for lifestyle support business, Ateam plans, develops and operates web services that provide information necessary for daily life. Ateam operates an information site of wedding halls "Hana Yume", a cashing card loan comprehensive search site "Navi Navi Cashing", technical information sharing service for programmers "Qiita", engineer recruitment support service "Qiita Jobs" and a comparison / reservation site of moving services "Moving Samurai".


A unique bicycle mail-order site deals more than 200 types of bicycles purchased from Japan and overseas

Regarding EC business, Ateam operates an online bicycle-specialized store under the name of “cyma”. Customers can purchase bicycles online and Ateam delivers bicycles to customers at homes. Ateam has three distribution warehouses in Chubu, Kanto, and Kansai regions, and operates a unique bicycle mail-order site that deals more than 200 types of bicycles purchased from Japan and overseas by a dedicated professional mechanic and sells online, delivers them to customer’s doorstep through its website "cyma". 

According to the government survey, bicycle sales is steadily expanding in recent decade. A major Japanese bicycle parts maker also cites increased demand while many newcomers to biking have been buying midrange and budget models as an easily accessible form of exercise and recreation. COVID-19 pandemic also brought about a dramatic increase in bicycle sales from people forced to avoid public transportations such as trains and buses. 

Ateam takes advantage of a growing bicycle boom in Japan after COVID 19.

Bike sellers in Japan feel increasing number of customers comes to buy cross bikes appropriate for city riding after the pandemic hit Japan because they are worried about the virus and want to use them to get to work. The trend is also seen in bicycle sharing initiatives, which is expanding across the country. Under the systems, bikes can be borrowed in a similar fashion to cars in a car share, and returned to any cycle port in the network. Ateam bike business is expected grow further taking advantage of a burgeoning bike boom by COVID-19.


Ateam announces to transit to a holding company through the company split

Sales in the EC business for the first half of the fiscal year ending July 2021 increased significantly compared to the same period of the previous year thanks to significant increment of bike sales although its entertainment business and lifestyle support business decreased due to the impact of the spread of the new coronavirus infection. 

As a result, Ateam posted financial results for the first half of the fiscal year with sales of 14,871 million yen (7.1% decrease year on year), operating income of 221million yen (35.4% decrease). Ordinary income increased to 363 million yen (up 3.7%), and net income attributable to shareholders of the parent also increased to 741 million yen, increment of hefty 484.6% thanks to gains brought by sales of investment securities. Ateam forecasts net income will be 720 million yen for the full year bouncing up from deficit of 519 million yen last year. 

Ateam takes advantage of a growing bicycle boom in Japan after COVID 19

On March 12, when Ateam posted its financial results for the first half of this fiscal year, it also announced to transit to a holding company through the company split to fasten growth and strengthen management of group companies. By the company split, two companies specializing in entertainment business and EC business will be founded under the holding company’s management.

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