Q1’s upward revision was driven by Retail, with continued profit growth in both segments the focus for FY2027-H1

FY2027-Q1 revenue was ¥72.359 billion, operating profit was ¥15.408 billion, ordinary profit was ¥12.814 billion, and net profit attributable to owners of the parent was ¥9.030 billion, all above the year-earlier levels. Progress toward the full-year operating profit forecast of ¥55.5 billion was 27.8%, while progress toward the revenue forecast of ¥296.5 billion was 24.4%, meaning profit is progressing faster than revenue. However, the Q1 supplementary earnings materials do not explicitly state progress against the full-year forecasts, so H1 will require another review of cumulative results relative to the full-year plan.

By segment, Retail posted revenue of ¥20.932 billion and operating profit of ¥3.413 billion, with operating profit up 38.4% year on year. Fintech posted revenue of ¥54.837 billion and operating profit of ¥13.987 billion, with operating profit growth limited to 3.4%. The factors behind the change in consolidated operating profit are presented as ¥0.9 billion in higher Retail profit, ¥2.3 billion in higher Fintech profit and ¥0.1 billion from company-wide eliminations and other items, offset by a ¥1.8 billion negative impact from receivables securitisation. Progress in underlying profit excluding the receivables securitisation impact is more important than reported operating profit alone.

The full-year forecasts are revenue of ¥296.5 billion, operating profit of ¥55.5 billion, ordinary profit of ¥44.0 billion and profit for the year of ¥29.5 billion. As of Q1, the revenue and operating profit forecasts were each raised by ¥0.5 billion from the initial plans, while the ordinary profit and profit forecasts were unchanged. Retail benefited from higher tenant and event revenue, while Fintech was described as being in line with the initial plan. H1 should therefore distinguish between a temporary Retail outperformance and a full-scale improvement in Fintech profitability.

FY2026 delivered revenue of ¥276.862 billion, operating profit of ¥50.211 billion and an operating margin of 18.1%, marking the fifth consecutive period of higher revenue and profit. FY2027-Q1 operating margin also rose to 21.3% from approximately 20.7% a year earlier, although this reflects the seasonality of Q1 and the segment mix. At the next results announcement, the H1 cumulative operating margin, underlying operating profit excluding receivables securitisation and both segments’ performance against plan will be key to assessing the reliability of the ¥55.5 billion full-year forecast.