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Earnings2489Adways Inc.Information and Communications, Services and Others

Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated)

In the interim period, net sales increased 7.1% year on year, while operating income, ordinary income, and interim net income attributable to owners of the parent turned profitable and increased substantially. Although the full-year forecast calls for a year-on-year decline in net sales, forecasts for operating income and other profit figures have been raised substantially, and the annual dividend forecast has been increased from ¥6.42 to ¥12.06 per share.

Worth reading
64In focus
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
956.697
Millions of yen (interim-period operating income)
Wording
Conditional
How definitive the wording is.

Results for this period

Interim period (second quarter)1 January 2026–30 June 2026ConsolidatedJapanese GAAP
Net Sales6,324Millions of yenYear on year +7.1%Progress 53.6%
Operating profit956Millions of yenProgress 63.7%
Ordinary income1,148Millions of yenYear on year +834.1%Progress 65.6%
Net income attributable to owners of the parent1,074Millions of yenProgress 71.6%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥27.49
Financial position at period-end
Total assets22,408Millions of yen
of which net assets 14,649 Millions of yenEquity ratio 63.2%vs. prior year-end +2.7pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Cash inflows and outflows
Operating+1,316,976
Investment-1,000,100
Financials-251,241
Net change+65,635

Stacked from zero: upward is an increase in cash, downward a decrease (in ¥ thousand).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period¥9,980,660 thousand
Segment revenue
Ad Platform Business2,600,28041.1%+11.2%
Agency Business2,947,90446.6%+0.7%
Other776,76812.3%+21.5%
Segment profit
Ad Platform Business955,44354.0%+62.6%
Agency Business632,86635.7%+156.0%
Other182,21510.3%+89.2%
Regional salesDomestic Current fiscal year ¥5,457,533 thousand / Previous period ¥4,929,657 thousand / yoy_pct Not disclosed / Overseas expansion Current fiscal year ¥867,419 thousand / Previous period ¥977,080 thousand / yoy_pct Not disclosed
Outlook and shareholder returns
Full-year earnings forecast
Net Sales11,800 Millions of yen (YoY -3.4%)
Operating profit1,500 Millions of yen (YoY +404.7%)
Ordinary income1,750 Millions of yen (YoY +188.2%)
Net income1,500 Millions of yen (YoY +493.1%)
Revision to Earnings ForecastNet Sales Not disclosed → 11,800 Millions of yen / Operating profit Not disclosed → 1,500 Millions of yen / Ordinary income Not disclosed → 1,750 Millions of yen / Net income Not disclosed → 1,500 Millions of yen
Annual Dividend Forecast¥6.42 → ¥12.06
Factors Behind Changes in Business Performance

Although the transfer of shares in a consolidated subsidiary that operated an advertising business in China and Hong Kong was a negative factor for net sales, net sales increased due to higher demand for UNICORN and increased advertising demand from advertisers offering game and manga apps. Operating income increased as gross profit rose and selling, general and administrative expenses were kept down through measures including optimization of the new graduate hiring plan.

Disclosure regarding the going concern assumption

No applicable matters

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNew Not disclosed / Excluded Number of companies Not disclosed / Company name A consolidated subsidiary that operated an advertising business in China and Hong Kong (company name not disclosed)
Material subsequent eventsNo applicable matters.
Impairment loss¥17,926 thousand
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets 10,000 / Gain on sale of investment securities 10,507 / Gain on sale of shares in an affiliated company 323,763 / Gain on reversal of subscription rights to shares 2,128 / Extraordinary loss Impairment loss 17,926 / Impairment loss on investment securities 50,038 / Loss on sale of shares of subsidiaries and affiliates 7 / Loss on liquidation of an affiliated company 887 / Settlement Payments 5,824 / Restructuring expenses for overseas consolidated subsidiaries 19,274
Depreciation and amortization¥51,454 thousand
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingYes (for institutional investors, securities analysts, news media and shareholders)
Issued Shares at Period-End42,006,000
Treasury Shares at Period-End2,923,880
Results for this period
ItemDetails
Fiscal Period ClassificationInterim period (second quarter)
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 January 2026–30 June 2026
Net Sales6,324 Millions of yen (YoY +7.1%)
Operating profit956 Millions of yen
Ordinary income1,148 Millions of yen (YoY +834.1%)
Profit attributable to owners of the parent1,074 Millions of yen
Net income per share¥27.49
Equity ratioEnd of the current fiscal period 63.2 / End of previous period 60.5
Total assets22,408 Millions of yen
Net assets14,649 Millions of yen
Cash flows from operating activities¥1,316,976 thousand
Cash flows from investing activities¥-1,000,100 thousand
Cash flows from financing activities¥-251,241 thousand
Cash and cash equivalents at end of period¥9,980,660 thousand
Full-year earnings forecastNet Sales 11,800 Millions of yen (YoY -3.4%) / Operating profit 1,500 Millions of yen (YoY +404.7%) / Ordinary income 1,750 Millions of yen (YoY +188.2%) / Net income 1,500 Millions of yen (YoY +493.1%)
Revision to Earnings ForecastNet Sales Not disclosed → 11,800 Millions of yen / Operating profit Not disclosed → 1,500 Millions of yen / Ordinary income Not disclosed → 1,750 Millions of yen / Net income Not disclosed → 1,500 Millions of yen
Annual Dividend Forecast¥6.42 → ¥12.06
Segment revenueAd Platform Business ¥2,600,280 thousand (YoY +11.2%) / Agency Business ¥2,947,904 thousand (YoY +0.7%) / Other ¥776,768 thousand (YoY +21.5%)
Segment profitAd Platform Business ¥955,443 thousand (YoY +62.6%) / Agency Business ¥632,866 thousand (YoY +156.0%) / Other ¥182,215 thousand (YoY +89.2%)
Regional salesDomestic Current fiscal year ¥5,457,533 thousand / Previous period ¥4,929,657 thousand / yoy_pct Not disclosed / Overseas expansion Current fiscal year ¥867,419 thousand / Previous period ¥977,080 thousand / yoy_pct Not disclosed
Depreciation and amortization¥51,454 thousand
Impairment loss¥17,926 thousand
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets 10,000 / Gain on sale of investment securities 10,507 / Gain on sale of shares in an affiliated company 323,763 / Gain on reversal of subscription rights to shares 2,128 / Extraordinary loss Impairment loss 17,926 / Impairment loss on investment securities 50,038 / Loss on sale of shares of subsidiaries and affiliates 7 / Loss on liquidation of an affiliated company 887 / Settlement Payments 5,824 / Restructuring expenses for overseas consolidated subsidiaries 19,274
Disclosure regarding the going concern assumptionNo applicable matters
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNew Not disclosed / Excluded Number of companies Not disclosed / Company name A consolidated subsidiary that operated an advertising business in China and Hong Kong (company name not disclosed)
Material subsequent eventsNo applicable matters.
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingYes (for institutional investors, securities analysts, news media and shareholders)
Issued Shares at Period-End42,006,000
Treasury Shares at Period-End2,923,880
Factors Behind Changes in Business PerformanceAlthough the transfer of shares in a consolidated subsidiary that operated an advertising business in China and Hong Kong was a negative factor for net sales, net sales increased due to higher demand for UNICORN and increased advertising demand from advertisers offering game and manga apps. Operating income increased as gross profit rose and selling, general and administrative expenses were kept down through measures including optimization of the new graduate hiring plan.
Items this document does not state (4)
Operating MarginPayout ratioShareholder Return PolicyOrders 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.

Increased demand for UNICORN, increased advertising demand from advertisers offering game and manga apps, higher gross profit, lower selling, general and administrative expenses through optimization of the new graduate hiring plan, and increases in equity-method investment income and gains on sales of shares in affiliated companies.

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.
Financial Results for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated) | Adways Inc. (2489) timely disclosure | Komori