Confirm whether the strong first-quarter earnings progress is replicated in the first half

Consolidated revenue for the first quarter of the fiscal year ending March 2027 was ¥6,227.8 million, up 29.2% year on year, while operating profit was ¥629.7 million, up 248.6%. The operating margin was approximately 10.1%, up approximately 6.4 percentage points from approximately 3.7% in the same quarter of the previous year. Profit grew more rapidly than revenue, so the cumulative first-half figures will need to be checked to determine whether changes in the business mix or manufacturing costs, rather than a simple recovery in sales volume, may have driven the higher margin.

The full-year forecasts remain unchanged as of the first quarter at ¥22,500 million in revenue, ¥950 million in operating profit, ¥850 million in ordinary profit and ¥600 million in net profit attributable to owners of the parent. Simple progress rates are 27.7%, 66.3%, 70.2% and 99.5%, respectively. After deducting first-quarter results, the amounts still required to meet the full-year forecasts are approximately ¥16,272 million in revenue, ¥320 million in operating profit, ¥253 million in ordinary profit and ¥3 million in net profit. However, net profit includes a gain on the sale of fixed assets, so the certainty of the full-year plan cannot be judged solely from the mechanical ¥3 million shortfall.

Segment profit was concentrated in the amusement business at ¥464 million, followed by ¥31 million for the food and e-commerce business, ¥103 million for the real estate business and ¥180 million for the electricity business. The simple total of segment profit was approximately ¥778 million, about ¥148 million higher than consolidated operating profit of ¥629.7 million, but the information released this time does not provide specific details of adjustments such as company-wide expenses or intersegment eliminations. At the next results announcement, we will check whether the growth in consolidated profit reflects a structure that can absorb deterioration in the food and e-commerce and electricity businesses, rather than merely a temporary contribution from the amusement business.

At the next results announcement, it will be important to see how far cumulative first-half revenue, operating profit and ordinary profit have progressed against their respective full-year forecasts, as well as whether the full-year forecasts are maintained or revised upward or downward. In particular, we will track whether additional disclosure is provided on factors not quantified this time, including pachinko and gaming machine unit sales, cost reductions from reused parts, and promotional and raw-material costs in the food and e-commerce business, to explain why operating profit reached 66.3% of the full-year forecast in the first quarter alone.