1Q profit progress trails revenue, making the interim results the key test

Consolidated revenue in 1Q of FY2027/3 was ¥5,291.269 million, operating profit was ¥186.549 million, ordinary profit was ¥296 million, and net profit attributable to owners of the parent was ¥169 million. The full-year forecasts are revenue of ¥25,290 million and operating profit of ¥1,536 million, putting 1Q progress at 20.9% and 12.1%, respectively. Against a simple benchmark that assumes 25% of the fiscal year has elapsed, revenue is approximately 4.1 percentage points below the benchmark and operating profit is approximately 12.9 points below it.

Starting from the 1Q results, the company needs to generate ¥19,998.731 million in revenue and ¥1,349.451 million in operating profit over the remaining 3 quarters to meet its full-year plan. This means generating 79.1% of full-year planned revenue and 87.9% of planned operating profit during the remaining period, with the required level particularly high on the profit side. The simple 50% interim progress line is ¥12,645 million for revenue and ¥768 million for operating profit, but the company has not disclosed numerical details of seasonality or its quarterly plan breakdown. This line therefore needs to be treated as a mechanical benchmark.

The comparable interim period of FY2026/3 recorded revenue of ¥11,048.015 million and operating profit of ¥493.762 million. The operating margin was approximately 4.47%, above the approximately 3.53% recorded in 1Q of FY2027/3. At the next results, it will be necessary to check not only whether interim revenue exceeds the prior-year figure of ¥11,048 million, but also whether operating profit exceeds ¥493 million and the margin returns to at least the prior-year interim level of 4.47%.

By segment in 1Q, the broadcasting business recorded revenue of ¥1,375.290 million and operating profit of ¥12.231 million; the systems-related business recorded revenue of ¥3,614.055 million and operating profit of ¥180.801 million; and the building services and other business recorded revenue of ¥431.867 million and operating profit of ¥14.842 million. At the next results, the key questions will be whether the broadcasting business's lower revenue and profit continue through the interim period and how much the systems-related business's higher profit offsets the progress of company-wide profit, based on cumulative results and year-on-year comparisons.