Revenue and profit declined following deconsolidation, but results were broadly in line with the full-year operating plan

In FY2026-H1, revenue was ¥5,264.530 million, down 5.0% year on year, operating profit was ¥513.363 million, down 14.1%, and ordinary profit was ¥522.574 million, down 6.6%. The operating margin also declined by approximately 1.0 percentage point, from approximately 10.8% in the same period of the previous year to approximately 9.8%, indicating an apparent decline in both revenue and profit. However, progress against the full-year revenue forecast of ¥11,000 million was 47.9%, while progress against the full-year operating profit forecast of ¥1,050 million was 48.9%, so H1 was not materially below plan.

A simple year-on-year comparison includes the impact of the transfer of all shares in GMO Creators Network in September 2025 and the resulting exclusion of the Financial Support business from the scope of consolidation. The Financial Support business was also discontinued as a reporting segment from FY2026-H1, making it important in Q3 to explain revenue and operating profit on a continuing-operations basis, excluding the impact of deconsolidation, together with year-on-year comparisons. In particular, we will look to confirm whether the Hosting business can sustain revenue growth and offset declines in the EC Support and Handmade businesses.

At the end of H1, the shortfall against the full-year forecasts was ¥5,735.470 million in revenue and ¥536.637 million in operating profit. At the end of Q3, it will be possible to assess how much of these H2 requirements is accumulated in Q3 alone and how much remains for Q4, which includes the year-end sales season. The Q2 materials left the full-year revenue and operating profit forecasts unchanged at ¥11,000 million and ¥1,050 million, respectively. If there is no forecast revision in Q3, segment breakdowns and quarterly standalone figures will become more important in demonstrating the strength of the continuing operations.

Interim net income attributable to owners of the parent was ¥1,072.357 million, up 169.5% year on year, primarily due to the recognition of deferred tax assets associated with the liquidation of a consolidated subsidiary. Although progress against the full-year net income forecast of ¥1,322 million reached approximately 81.1%, this is different in nature from progress in operating profit. In Q3, it will be necessary to separate any additional tax effects and extraordinary gains or losses and confirm recurring earnings power based on operating profit and ordinary profit.