First-half revenue is ahead, but progress toward the full-year operating profit forecast remains a concern

For the six months ended June 2026, consolidated revenue was ¥19,137 million, operating profit was ¥3,051 million, ordinary profit was ¥3,048 million, and net profit attributable to owners of the parent was ¥2,038 million. Year on year, revenue increased 2.4%, operating profit 5.1%, ordinary profit 4.7%, and net profit 4.8%, with each reaching a record high for a first half. Operating profit grew faster than revenue, confirming some improvement in margins.

The company’s full-year forecasts are revenue of ¥42,000 million, operating profit of ¥7,500 million, ordinary profit of ¥7,497 million, and net profit attributable to owners of the parent of ¥5,100 million. At the six-month stage, progress was 45.6% for revenue, 40.7% for operating profit, 40.7% for ordinary profit, and 40.0% for net profit, indicating that profit is lagging revenue. To meet the full-year forecasts, the company must generate ¥22,863 million in revenue and ¥4,449 million in operating profit in the second half. To exceed the previous full-year operating profit of ¥6,465 million, it will need to further strengthen its profit-generation capacity in the second half.

In the nine months ended September of the previous year, revenue was ¥28,913 million and operating profit was ¥4,748 million. At the next earnings announcement, it will be important to confirm whether the cumulative figures, combining the current six-month results with the third-quarter contribution, exceed the prior-year figures for revenue and operating profit. In particular, the extent to which cost savings from optimizing promotional spending and reorganizing operating locations were reflected in operating profit, in addition to a recovery in second-half demand, will be important.

The six-month operating margin was approximately 15.9%, up from approximately 15.5% in the same period of the previous year. However, first-half profit improvement was supported by higher earnings in the Information and Communications Services and Glamping and Tourism businesses, as well as improved promotional spending and operating efficiency in the Global WiFi business. The earnings report does not disclose cash flow from operating activities, investing activities, or financing activities for the six months, or the period-end balance of cash and cash equivalents. Whether the increase in profit translated into cash generation will therefore need to be supplemented by future disclosures.