Full-year plan now almost half achieved at the interim stage after the upward revision; Q3 will test repeatability

Operating revenue for the interim period of the fiscal year ending December 2026 was ¥1,453 million, and operating profit was ¥246 million. Progress against the revised full-year forecasts of ¥2,887 million in operating revenue and ¥501 million in operating profit was therefore 50.3% and 49.1%, respectively, based on calculations. Revenue and operating profit are progressing at broadly similar rates, so as of the interim period, profit is not excessively front-loaded.

After the interim period, the amounts required to achieve the full-year forecasts are ¥1,434 million in operating revenue and ¥255 million in operating profit. In the Q3 results, it will be important to see not only the 9-month cumulative results but also whether standalone results for the 3 months of Q3 are provided. Previous interim results presentations did not include progress against the full-year forecasts or standalone second-quarter results, making it difficult to rigorously assess the earnings power of each quarter.

The full-year forecasts were raised from initial operating revenue of ¥2,834 million, operating profit of ¥483 million, ordinary profit of ¥502 million and net profit of ¥356 million to ¥2,887 million, ¥501 million, ¥526 million and ¥479 million, respectively. The increases were ¥53 million, ¥18 million, ¥24 million and ¥123 million, respectively, implying revision rates of 1.9% for operating revenue, 3.7% for operating profit based on calculations, and 34.6% for net profit. The large revision to net profit needs to be assessed separately from the impact of gains on sales of investment securities.

The company attributed the interim-period upside to solid visitor numbers at the “House-Building School” and signed contracts exceeding expectations. Accordingly, in Q3 it will be necessary to check the 9-month cumulative progress rates for operating revenue and operating profit, as well as actual visitor numbers and signed contracts, the difference from the initial plan, and whether the full-year forecasts are maintained or revised again.