From a Q1 loss to a full-year profit, with plan execution to be tested in FY2027-H1

FY2026 full-year revenue was ¥1,074 million, operating loss was ¥417 million, ordinary loss was ¥499 million, and net loss attributable to owners of the parent was ¥501 million. By contrast, the FY2027 full-year forecasts are revenue of ¥3,344 million, operating profit of ¥120 million, ordinary profit of ¥45 million, and net income attributable to owners of the parent of ¥34 million, assuming both a sharp expansion in revenue and a return to operating profitability.

However, FY2027-Q1 revenue was ¥209 million, operating loss was ¥116 million, and both ordinary loss and net loss attributable to owners of the parent were ¥77 million. Revenue progress was approximately 6.3% of the full-year forecast, well below the simple quarterly elapsed rate of 25%. There had been no progress toward operating profitability, and reaching full-year operating profit of ¥120 million from the Q1 operating loss of ¥116 million would require approximately ¥237 million in operating profit from Q2 onward on a simple calculation.

Based on the disclosed figures, the Q1 operating margin was approximately negative 56%, indicating that the challenge involves not only insufficient revenue but also the absorption of fixed costs and business expenses. At the next interim results, in addition to whether the full-year forecasts are maintained, it will be necessary to assess the extent to which the settlement of real estate sales, acquisition of hotel operating rights, and improvements in hotel operating costs have been reflected in earnings, using revenue and operating income by segment. Since the company has not quantified its assessment of progress against the plan or profit progress as of Q1, the degree of improvement in operating income, rather than revenue alone, will be an important benchmark.