1Q profit progress outpaced revenue, but the full-year earnings decline forecast still needs to be tested

In FY2027-1Q, covering 1 March to 31 May 2026, revenue was ¥905.4 million, operating profit was ¥103.3 million, ordinary profit was ¥124.0 million, and profit attributable to owners of the parent was ¥84.0 million. Year on year, revenue increased 6.1%, operating profit 18.0%, ordinary profit 18.8%, and net profit 31.4%, indicating that operating-level profit grew faster than the top line.

The company’s FY2027 full-year forecasts are revenue of ¥3,697 million, operating profit of ¥339 million, ordinary profit of ¥337 million, and net profit of ¥237 million. Dividing the 1Q results by these full-year forecasts gives progress rates of approximately 24.5% for revenue and 30.4% for operating profit. Revenue is broadly in line with the 25% of the fiscal year elapsed, while operating profit is ahead of the time-adjusted benchmark. However, the company has not provided a quantitative explanation of the seasonality of Kabuki performances or tourism demand.

Against 1Q operating profit of ¥103.3 million, the full-year operating profit forecast is ¥339 million, producing a simple even half-year benchmark of ¥169.5 million. Similarly, the H1 revenue benchmark is ¥1,848.5 million, half of the ¥3,697 million full-year forecast. These are merely mechanical benchmarks that ignore seasonality, not the company’s H1 plan. In FY2027-H1, it will therefore be necessary to check not only whether results exceed these levels, but also which businesses generated the year-on-year growth.

The previous fiscal year’s results were revenue of ¥3,632 million and operating profit of ¥378 million, while the company’s current forecasts assume higher revenue but lower operating profit. It has not yet been broken down whether the apparently strong 1Q profit progress reflects recurring rent revisions and improved sales efficiency, or temporary contributions from succession-inauguration performances and merchandise events. At the next earnings release, the sustainability of profit leading revenue will be tested against the mechanical H1 reference points of ¥1,848.5 million in cumulative revenue and ¥169.5 million in operating profit, together with any revisions to the full-year forecasts.