Making the Enterprise Business the Second Revenue Pillar

「Due to lower revenue and other factors in the AGEST Group business, operating income was ¥624.937 million, down 11.7% year on year, ordinary income was ¥562.599 million, down 20.4%, and net income attributable to owners of the parent was ¥358.395 million, down 22.7%.」

「Revenue from the AGEST Group business for the six-month consolidated accounting period was ¥7,905.328 million, down 0.3% year on year, as increased revenue from the core QA solutions business was offset by factors including the contraction of the maintenance and operations support business. On the earnings front, segment profit rose sharply to ¥283.727 million, compared with a segment loss of ¥6.512 million in the same period of the previous year, owing to improved profitability following the reversal of the impact of low-margin projects incurred in the first quarter of the previous fiscal year (April to June), as well as the effects of business restructuring overseas.」

「As a result, Enterprise segment revenue for the first nine months of the fiscal year rose to ¥14,415.654 million, up 19.5% year on year, partly reflecting the effects of M&A.」

「As the Enterprise segment achieved growth of more than 120%, partly reflecting the effects of M&A,」

「Enterprise segment revenue for the first quarter of the fiscal year rose to ¥4,663.955 million, up 29.9% year on year, partly reflecting the effects of M&A.」

「In the fiscal year ended March 2023, the enterprise business grew to a scale accounting for nearly half of consolidated revenue and was successfully developed into a second earnings pillar, steadily generating profit while continuing to invest.」

「As a result, revenue from the enterprise business for the cumulative third quarter of the current consolidated fiscal year continued to grow strongly, reaching ¥12,066.159 million, up 52.0% from the same quarter of the previous year, partly due to the effects of M&A.」

「Revenue from the enterprise business for the cumulative second quarter of the current consolidated fiscal year continued to grow strongly, reaching ¥7,614.484 million, up 56.6% from the same quarter of the previous year, partly due to the effects of M&A.」

「During the cumulative first quarter of the current consolidated fiscal year, the priority enterprise business continued to achieve strong growth, with revenue expanding by approximately 1.8 times, partly due to the effects of M&A, while the entertainment business also achieved double-digit revenue growth against a favorable console game market and other factors, leaving both businesses performing strongly.」

「With stable growth in the highly profitable entertainment business providing support, the Group is focusing on the accelerated expansion of the enterprise business, where demand is rapidly increasing.」

「As a result, revenue from the enterprise business for the cumulative third quarter of the current consolidated fiscal year was ¥7,937.561 million, up 66.2% from the same quarter of the previous year, while segment profit was ¥403.195 million, up 1,018.5% year on year, representing substantial increases in both revenue and profit.」

「During the cumulative second quarter of the current consolidated fiscal year, we worked to develop personnel capable of consultative sales and build a new sales structure to win recurring and large-scale projects. As a result, revenue from the enterprise business for the cumulative second quarter was ¥4,863.034 million, up 58.7% from the same quarter of the previous year, representing a substantial increase. Segment profit was ¥232.816 million, compared with a segment loss of ¥28.845 million in the same quarter of the previous year, generating stable profit and moving from a loss in the previous period to profitability.」

「As a result, revenue from the enterprise business for the cumulative first quarter of the current consolidated fiscal year was ¥2,029.589 million, up 33.2% from the same quarter of the previous year, while segment profit was ¥87.871 million, compared with a segment loss of ¥21.522 million in the same quarter of the previous year, representing substantial increases in both revenue and profit.」

「As a result, revenue from the enterprise business for the consolidated fiscal year was ¥7,021.610 million, up 39.8% year on year, continuing its strong growth from the previous fiscal year. Segment profit was ¥188.452 million, compared with a segment loss of ¥67.115 million in the previous fiscal year, marking the first full-year profit since the start of the second founding phase.」

「In particular, in the enterprise business, we made upfront investments in strengthening our engineering and sales personnel, expanding the services we provide, and establishing an efficient operating structure in order to build a strong business foundation. The effects of these upfront investments have gradually emerged. During the first 9 months of the current fiscal year, enterprise business sales expanded approximately 4 times over the past 3 years, and the business achieved profitability for the first time on a 9-month cumulative basis, marking steady progress toward a growth trajectory.」

「As a result, revenue from the enterprise business for the cumulative second quarter of the current consolidated fiscal year was ¥3,064.536 million, up 46.3% from the same quarter of the previous year, representing a substantial increase. In terms of profit, the segment recorded a loss of ¥28.845 million, although the loss narrowed substantially from the same quarter of the previous year.」

「As a result, revenue from the enterprise business for the cumulative first quarter of the current consolidated fiscal year was ¥1,523.657 million, up 59.6% from the same quarter of the previous year, representing a substantial increase. In terms of profit, the segment recorded a loss of ¥21.522 million, although the loss narrowed substantially from the same quarter of the previous year.」

「As a result, revenue from the enterprise business for the consolidated fiscal year was ¥5,022.262 million, up 52.1% year on year, representing a substantial increase.」

「As a result, revenue from the enterprise business for the cumulative third quarter of the current consolidated fiscal year was ¥3,228.224 million, up 39.2% from the same quarter of the previous year, representing a substantial increase. Segment profit was a ¥167.858 million operating loss due to proactive investments, including investments in specialized personnel, although the loss narrowed steadily from the same quarter of the previous year.」

「As a result, revenue from the enterprise business for the cumulative second quarter of the current consolidated fiscal year was ¥2,094.660 million, up 43.5% from the same quarter of the previous year, representing a substantial increase. In terms of profit, the business achieved its first quarterly profit since the start of the second founding phase during the second quarter, but the segment loss for the cumulative second quarter was ¥181.957 million due to the impact of proactive investments, including investments in specialized personnel, made during the first quarter.」

「Against this backdrop, the Group aims to become "Asia's No. 1 comprehensive testing and solutions company" and positions the present as its "second founding phase." It is pursuing further growth in its core entertainment business while focusing on expanding the enterprise business to develop a second earnings pillar after the entertainment business. During the first quarter of the current consolidated fiscal year, revenue from the entertainment business's debugging services achieved double-digit growth and drove results, while the priority enterprise business also grew by approximately 1.5 times, with both businesses performing strongly.」

「As a result, revenue from the enterprise business for the consolidated fiscal year reached ¥3,302.922 million, up 74.5% year on year, representing a substantial increase of more than 1.5 times the previous fiscal year's level.」

「In the enterprise business, which we position as a growth area, we are expanding operations centered on system testing services to develop it into a second earnings pillar.」

「In the enterprise business, which we position as a growth area, we are expanding operations centered on system testing services to develop it into a second earnings pillar.」

「In the enterprise business, which we position as a growth area, we are expanding operations centered on system testing services to develop it into a second earnings pillar.」