Socialwire has lowered its full-year forecast for the fiscal year ending March 2027. Revenue is expected to reach the planned level in the second half, supported by the contribution from making SEIRYO a subsidiary, while the loss of a major project in the core business and one-off expenses weigh on profit.
Socialwire has lowered its full-year consolidated earnings forecast for the fiscal year ending March 2027, forecasting revenue of ¥4.35 billion, operating profit of ¥326 million, ordinary profit of ¥281 million and net profit attributable to owners of the parent of ¥254 million. All figures are below the previous forecasts.
The main reason for the downward revision was weak performance in the core business during the first half, as budget cuts coincided with the loss of major projects. In addition, brokerage fees associated with the acquisition of SEIRYO shares and one-off expenses related to optimizing personnel allocation also reduced each level of profit in the first half.
Revenue is expected to remain at the level of the initial plan in the second half due to the effect of consolidating SEIRYO as a subsidiary, but the gross profit margin is expected to fall below plan because of changes in the business portfolio. The decline in margins in exchange for additional revenue from the acquisition lowered the plan.
The second-half plan also reflects newly disclosed expenses, including review fees associated with the application to change the company's market classification to the Standard Market of the Tokyo Stock Exchange. Expenses for growth investment and organizational development have been incorporated into the plan.