FY2027-H1: Focus on progress against the full-year plan and whether earnings momentum is sustainable

In the first quarter of the fiscal year ending March 2027, consolidated revenue was ¥1,864 million, operating profit was ¥381 million, ordinary profit was ¥384 million, and net profit attributable to owners of the parent was ¥246 million. The full-year forecasts are revenue of ¥7,700 million, operating profit of ¥1,430 million, ordinary profit of ¥1,440 million, and net profit of ¥970 million, resulting in progress rates of 24.2%, 26.6%, 26.7%, and 25.4%, respectively, as of the first quarter. Progress for operating and ordinary profit was approximately 2.4 percentage points ahead of revenue, indicating that earnings are slightly ahead.

The earnings presentation stated that first-quarter revenue increased 8.9% year on year and operating profit increased 15.9%. However, the earnings summary stated that no quarterly consolidated financial statements had been prepared for the first quarter of the previous year, so no year-on-year comparative analysis was conducted. In FY2027-H1, it will be important to show cumulative first-half results after clarifying the year-on-year comparison on a consolidated basis, the scope of the comparison, and the consolidation impact of ミークモバイル株式会社.

Assuming simple seasonality, first-half revenue of ¥3,850 million, operating profit of ¥715 million, ordinary profit of ¥720 million, and net profit of ¥485 million would each represent 50% of the full-year forecast. Since the first-quarter operating margin was 20.5%, the focus will be not only on whether first-half operating profit exceeds ¥715 million, but also on whether the gap between revenue progress of 24.2% and profit progress of 26.6% narrows or is maintained.

The company identified new customer acquisition, increased usage by existing customers driven by campaigns conducted in the previous fourth quarter, and an increase in the number of lines as factors behind the first-quarter revenue growth. It has not disclosed the contribution from each factor or the remaining revenue and profit required in the second half. Accordingly, in FY2027-H1 it will be necessary to confirm not only first-half results, but also whether the assumption remains that the company will generate ¥5,836 million of revenue and ¥1,049 million of operating profit in the remaining 6 months to meet the full-year forecast, along with the outlook for winning projects and usage volumes underlying that assumption.