Revenue is broadly in line with the full-year plan, but the key focus is the buildup in operating profit during the first half.

Consolidated first-quarter revenue for the fiscal year ending March 2027 was ¥4,806 million, representing 24.3% progress against the full-year forecast of ¥19,800 million. As the first quarter accounts for 25% of the year, revenue alone was progressing close to a simple time-apportioned benchmark. Operating profit, by contrast, was ¥4 million, or just 1.3% of the full-year forecast of ¥300 million. The operating margin was also only approximately 0.08% in the first quarter, showing a clear gap between revenue progress and profit progress.

In the previous fiscal year ended March 2026, revenue was ¥20,655 million and operating profit was ¥334 million. The company's forecasts for the fiscal year ending March 2027 are ¥19,800 million in revenue and ¥300 million in operating profit, representing year-on-year declines of 4.1% and 10.3%, respectively. The implied operating margin is also expected to decline from approximately 1.62% in the previous year to approximately 1.52% in the current-year forecast. The first half will show whether the low first-quarter margin was a temporary seasonal factor or signals lower full-year profitability.

The increase in first-quarter revenue was primarily driven by growth in the number of properties sold in the real estate-related business. The video-related business, however, reported lower revenue and an operating loss, while the food and beverage-related business posted higher revenue but lower profit. The business mix therefore allows consolidated revenue to be secured without profit increasing at the same pace. The simple total of operating profit across the 3 segments was ¥249 million, compared with consolidated operating profit of ¥4 million, a difference of approximately ¥245 million. The specific breakdown of this difference by expense item cannot be confirmed from the materials provided, making disclosure of corporate expenses and intersegment eliminations important in the next results release.

For the cumulative second quarter, it will be necessary to confirm not only whether revenue can reach the simple first-half benchmark of ¥9,900 million, but also whether operating profit can reach approximately ¥150 million. Key factors in assessing the likelihood of achieving the plan will include how far the high profitability of the real estate business can absorb the video business's losses and the food and beverage business's higher costs, and whether the profit assumptions for the remaining period are explained if the full-year forecasts are maintained.