Amid a sharp decline in the share price, Startline revised up its interim earnings forecast for the fiscal year ending March 2027. Ordinary profit is expected to be revised up to ¥69 million, while revenue is expected to be ¥2.949 billion, down 3.4% from the previous forecast.
Startline revised its interim earnings forecast for the fiscal year ending March 2027, forecasting ordinary profit of ¥69 million, an increase of ¥68 million from the same period of the previous fiscal year. At the same time, it forecast revenue of ¥2.949 billion, down 3.4% from the previous forecast.
The revision was attributed to the broadly on-plan progress of its core satellite-based employment support service for people with disabilities. The factors boosting profit included some unspent site-opening expenses and costs being deferred to the second half of the fiscal year.
However, delays in launching new services and the disability welfare business, as well as a shortfall in consulting services, are weighing on revenue. Taking these factors into account, the full-year earnings forecast was left unchanged.
The article does not state the market reaction or provide further updates. At this stage, the outlook can be understood as maintaining the full-year forecast as profit-boosting factors offset revenue-reducing factors.