Social Wire revised its full-year revenue forecast downward to ¥435 million, operating profit to ¥32.6 million and net profit to ¥25.4 million after budget cuts for large-scale projects coincided with lost contracts in the first half.
The full-year earnings forecast was reviewed after budget cuts for large-scale projects and lost contracts coincided in the main business during the first half. Revenue was reduced from ¥441.2 million to ¥435 million, operating profit from ¥42.5 million to ¥32.6 million, and net profit from ¥32.7 million to ¥25.4 million.
For the second half, brokerage fees related to the acquisition of SEIRYO shares and business restructuring costs associated with optimizing personnel allocation weighed on profit. The contribution is also expected to be in line with the initial plan.
Some market observers believe that the impact in the first half was not limited and that profit margins may continue to decline as the business portfolio changes.