Dream Incubator reported consolidated operating profit of ¥560 million for the second quarter of the fiscal year ending March 2027, down 26% year on year. While the decline in the investment business weighed on results, business production revenue and profit remained solid, with the expansion of long-term projects and repeat clients supporting earnings.
Consolidated operating profit, equivalent to gross profit for the first half, was ¥560 million, down 26% year on year. Unrealised gains and losses on investment assets and stock-market conditions affected results, with investment revenue falling sharply from ¥7.9 billion to ¥2.4 billion.
Meanwhile, business production (BP) revenue grew 20% to ¥3.48 billion and operating profit increased 37% to ¥420 million, improving the stability of the company's earnings mix. Contracted revenue stood at ¥4.84 billion at the end of the first half, exceeding the ¥4.12 billion recorded in the same period of the previous year.
Headcount increased by 17 from the end of the previous fiscal year to 176, and the company is reviewing its recruitment policy in light of the AI era. As for the source of dividends, the dividend at the end of the previous fiscal year was approximately ¥1.3 billion, while BP profit is expected to exceed ¥500 million. It remains unclear whether the dividend can be funded solely from profits from the core business.
Attention is also focused on the company's approach to equity investments, with indications that the perceived value of the company could change depending on the timing of realised gains and market conditions. Going forward, BP growth and the effects of investment in recruitment are expected to affect earnings stability.