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Presentation materials for financial results2433HAKUHODO DY HOLDINGS INCORPORATEDInformation and Communications, Services and Others

Summary of Q&A from the briefing on consolidated financial results for the first quarter of the fiscal year ending March 2027

At the earnings briefing for the first quarter of the fiscal year ending March 2027, the company discussed the factors behind lower revenue and profit in its overseas business, the impact of the situation in the Middle East and AI, collaboration with Digital Holdings, and its future growth initiatives. The domestic business was described as firm, with the company aiming to offset weakness overseas through its domestic business and digital advertising and achieve its full-year outlook.

Worth reading
52Recurring
Scored from 3 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
7.5
Year-on-year revenue growth rate (including the impact of Digital Holdings, foreign exchange and BPO, %)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Summary of Q&AFirst quarter of the fiscal year ending March 20277 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net SalesApproximately 7.5% year-on-year growth (including the impact of Digital Holdings, foreign exchange and BPO)+7.5%
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Impact of the situation in the Middle East on the TV spot and advertising markets
  2. Factors behind lower revenue and profit in the overseas business and the potential for recovery
  3. Synergies with Digital Holdings and PMI
  4. Comparison of the organic growth rate with the internet market growth rate
  5. Operational efficiency and customer support through the use of AI
  6. Growth investment in the domestic business
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impact of Digital HoldingsApproximately 5% of the revenue growth rate
  • Organic growth excluding the impact of foreign exchange and BPORevenue: just under 3%; gross profit: just under 4%
  • Weakness in China, Thailand and North America
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Internet market growth rate6～8％
New initiatives
  • PMI project following the acquisition of Digital Holdings
  • Collaboration among Hakuhodo, Hakuhodo DY ONE, Digital Holdings, 大広 and 読売広告社
  • Creation of new work using AI by 3 digital agencies
  • Support for customers in using AI
  • Investment to acquire new capabilities in the domestic business
Key KPIsA metric the company considers important as a management benchmark.
  • Organic growth rate (revenue)Just under 3%
  • Organic growth rate (gross profit)Just under 4%
  • Assumed internet market growth rate6～8％
  • Full-year organic growth targetDouble-digit growth
Segment results
Overseas business: lower revenue and profit. China, Thailand and North America were weak, while Taiwan, Vietnam and Indonesia performed well. Figures: Not disclosed
Market Size / Share
Internet market growth is assumed at 6–8%. Market share: Not disclosed
Contents of this document
ItemDetails
Document typeSummary of Q&A
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net SalesApproximately 7.5% year-on-year growth (including the impact of Digital Holdings, foreign exchange and BPO) (YoY +7.5%)
Segment resultsOverseas business: lower revenue and profit. China, Thailand and North America were weak, while Taiwan, Vietnam and Indonesia performed well. Figures: Not disclosed
Breakdown of Factors Affecting the ChangeFactors Impact of Digital Holdings / Amount Approximately 5% of the revenue growth rate, Factors Organic growth excluding the impact of foreign exchange and BPO / Amount Revenue: just under 3%; gross profit: just under 4%, Factors Weakness in China, Thailand and North America / Amount Not disclosed
Key KPIsIndicator name Organic growth rate (revenue) / Value Just under 3% / Year on year against the same period last year Not disclosed, Indicator name Organic growth rate (gross profit) / Value Just under 4% / Year on year against the same period last year Not disclosed, Indicator name Assumed internet market growth rate / Value 6～8％ / Year on year against the same period last year Not disclosed, Indicator name Full-year organic growth target / Value Double-digit growth / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookItem Internet market growth rate / Value 6～8％
Market Size / ShareInternet market growth is assumed at 6–8%. Market share: Not disclosed
Key points of the Q&AImpact of the situation in the Middle East on the TV spot and advertising markets, Factors behind lower revenue and profit in the overseas business and the potential for recovery, Synergies with Digital Holdings and PMI, Comparison of the organic growth rate with the internet market growth rate, Operational efficiency and customer support through the use of AI, Growth investment in the domestic business
New initiativesPMI project following the acquisition of Digital Holdings, Collaboration among Hakuhodo, Hakuhodo DY ONE, Digital Holdings, 大広 and 読売広告社, Creation of new work using AI by 3 digital agencies, Support for customers in using AI, Investment to acquire new capabilities in the domestic business
Items this document does not state (21)
Operating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlog

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The overseas business was weak in China, Thailand and North America, particularly in consulting. The company attributed the weakness in China to reduced advertising spending amid deteriorating Japan-China relations, the weakness in Thailand to economic stagnation caused by high crude oil prices and the situation in the Middle East, and the weakness in North America to the shortening of consulting demand cycles as AI gains wider adoption. Taiwan, Vietnam and Indonesia performed well, and the company aims to offset the weakness through its domestic business and the digital advertising business in North America.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Summary of Q&A from the briefing on consolidated financial results for the first quarter of the fiscal year ending March 2027 | HAKUHODO DY HOLDINGS INCORPORATED (2433) timely disclosure | Komori