Quarterly Earnings Fluctuations

「The Company recorded an operating loss of ¥89 million, compared with a loss of ¥326 million in the same period of the previous year; an ordinary loss of ¥63 million, compared with a loss of ¥314 million; and a quarterly net loss attributable to owners of the parent of ¥128 million, compared with a loss of ¥277 million.」

「For the consolidated fiscal year from 1 April 2025 to 31 March 2026, ordinary profit or ordinary loss (△) was △¥314.128 million in the first quarter, ¥1,992.155 billion in the second quarter, ¥835.975 million in the third quarter, and ¥3,968.373 billion for the full year.」

「The total number of participants in the Company's “Summer Intensive Training and Summer Training Camps,” which make a significant contribution to second-quarter earnings, exceeded 15,000. In particular, the summer training camps expanded from the 2 school years covered last year, fourth-grade elementary school students and first-year junior high school students, to include sixth-grade elementary school students in the public junior high school track and second-year junior high school students this year.」

「Ordinary profit or ordinary loss (△) (¥ thousand)\n△214,859\n1,621,837\n640,892\n903,562\n2,951,433」

「More than 14,000 students participated in the Company's “Summer Intensive Training and Summer Training Camps,” which make a significant contribution to second-quarter earnings. In particular, the summer training camps for fourth-grade elementary school students and first-year junior high school students were held for the first time in 4 years and attracted substantially more participants than expected.」

「In addition to regular classes, the group holds spring, summer, and winter courses, summer camps, including summer intensive courses, and New Year intensive courses. In the first quarter, revenue is lower than in the other quarters because regular classes predominate and the number of enrolled students tends to increase month by month from the beginning of the fiscal year and peak in January. Meanwhile, fixed costs such as rent and personnel expenses are incurred from the beginning of the fiscal year, so the group reports a loss in the first quarter each year.」

「Ordinary profit or ordinary loss (△) (¥ thousand)\n△287,341\n1,397,332\n558,770\n762,680\n2,431,441」

「Although there were concerns about the impact of the seventh wave of COVID-19 infections caused by the Omicron variant on the "Summer Intensive Training," which makes a major contribution to second-quarter earnings, more students participated than in the previous year. In post-event surveys of parents, we received ratings above the previous year on all indicators, including improved motivation to learn and improved academic performance.」

「In the first quarter, revenue is lower than in the other quarters because the group mainly provides regular classes and the number of enrolled students tends to increase month by month from the beginning of the fiscal year and peak in January. Meanwhile, fixed costs such as rent and personnel expenses are incurred from the beginning of the fiscal year, so the group reports a loss in the first quarter each year.」

「For the consolidated fiscal year from 1 April 2021 to 31 March 2022, ordinary profit or ordinary loss (△) was △¥408.578 million in the first quarter, ¥1,328.999 billion in the second quarter, ¥343.544 million in the third quarter, and ¥1,841.364 billion for the full year.」

「The summer courses, which make a significant contribution to second-quarter earnings, were attended by nearly 5,000 new and general students, the highest number ever. More than 13,500 students participated in the summer intensive courses, an alternative service to the summer camp that was not held for the second consecutive year to prevent infections with the novel coronavirus. The company explains that the service is becoming established as a new offering operationally as well.」

「A characteristic of the group's earnings structure is that first-quarter revenue is lower than in the other quarters because the number of enrolled students tends to increase month by month from the beginning of the fiscal year and peak in January, and because event classes that contribute significantly to revenue, such as summer, winter, and New Year intensive courses, are not held in the first quarter. Meanwhile, fixed costs such as rent and personnel expenses are incurred from the beginning of the fiscal year, resulting in a loss each year.」

「Although revenue from the basic courses, special courses, and classes recovered to above the level of the same period of the previous year, revenue for the six months ended the second quarter was below the previous year's level because various mock examinations could not be held as usual due to the COVID-19 pandemic and the summer camp, which makes a significant contribution to revenue, was cancelled.」

「In the company's individual instruction division, classes had to be suspended from 8 April to 12 May, and the Golden Week camp and various paid mock examinations were cancelled. In addition, the subsidiary 集学舎 suspended all classes for approximately 1 month. As a result, revenue was ¥4,422 million, down 4.7% year on year.」

「As noted above, in the fiscal year ending March 2021, the group will not hold residential summer camps to prevent infections with the novel coronavirus and will instead offer commuting summer intensive courses as an alternative service. Because the summer intensive courses are priced lower than the summer camps, revenue for August alone is expected to decline.」

「Because student recruitment focuses on the periods when the various courses are held, the number of enrolled students, which forms the basis of revenue, increases month by month from the beginning of the fiscal year and peaks in January. In contrast, fixed costs such as school rent, personnel expenses, and lease expenses are incurred every month from the beginning of the fiscal year, so profitability in the first quarter tends to be lower than in the other quarters.」

「A characteristic of the group's quarterly performance is that the number of enrolled students, which forms the basis of revenue, tends to increase month by month from the beginning of the fiscal year and peak in January. In addition, events that contribute significantly to revenue, such as summer camps and New Year intensive courses, are not held in the first quarter, resulting in lower revenue than in the other quarters. Meanwhile, fixed costs such as rent and personnel expenses are incurred from the beginning of the fiscal year, so first-quarter earnings are lower than in the other quarters and the group tends to report a loss each year.」

「Because student recruitment focuses on the periods when the various courses are held, the number of enrolled students, which forms the basis of revenue, increases month by month from the beginning of the fiscal year and peaks in January. In contrast, fixed costs such as school rent, personnel expenses, and lease expenses are incurred every month from the beginning of the fiscal year, so profitability in the first quarter tends to be lower than in the other quarters.」

「A characteristic of the group's quarterly performance is that the number of enrolled students, which forms the basis of revenue, tends to increase month by month from the beginning of the fiscal year and peak in January. Accordingly, the number of students is low in the first quarter, and revenue is also lower than in the other quarters because events such as summer camps and New Year intensive courses are not held. Meanwhile, fixed costs such as rent and personnel expenses are incurred from the beginning of the fiscal year, so first-quarter earnings are lower than in the other quarters and the group tends to report a loss each year.」

「Revenue is higher in the months when classes, summer camps, and New Year intensive courses are held. In contrast, fixed costs such as school rent, personnel expenses, and lease expenses, which account for a significant proportion of operating expenses, are incurred every month from the beginning of the fiscal year. As a result, profitability in the first quarter tends to be lower than in the other quarters.」