These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | Same Period Previous Year | YoY |
|---|---|---|---|
| Revenue | - | - | - |
| Operating Income | ¥3.02B | ¥2.53B | +19.4% |
| Ordinary Income | ¥3.04B | ¥2.90B | +4.6% |
| Net Income | ¥-1.63B | ¥-1.62B | -0.2% |
| ROE | -0.4% | -0.4% | - |
Although Operating Income and Ordinary Income increased, Net Income attributable to owners of the parent remained negative for the second consecutive period, indicating that improvements at the operating level have not translated into bottom-line results. Revenue was ¥176.22B (previous year: ¥169.82B, YoY +3.8%), Operating Income was ¥3.02B (previous year: ¥2.53B, YoY +19.4%), and Ordinary Income was ¥3.04B (previous year: ¥2.90B, YoY +4.6%). Net Income attributable to owners of the parent was ¥-1.76B (previous year: ¥-1.82B). Although the loss narrowed, an investment partnership loss of ¥1.095B recorded in non-operating expenses and an abnormally high effective tax rate of 170.8% put pressure on bottom-line profit.
【Revenue】Revenue was ¥176.22B (previous year: ¥169.82B, YoY +3.8%). Although the Company discloses a single segment, revenue in Japan increased to ¥129.51B (previous year: ¥123.57B, +4.8%), driving overall growth, while overseas revenue remained at ¥46.72B (previous year: ¥46.25B, +1.0%). The overseas revenue ratio increased to 29.3% (previous year: 28.8%).
【Profit and Loss】Gross profit was ¥90.65B (previous year: ¥85.82B, +5.6%), and the gross profit margin improved to 51.5% (previous year: 50.5%, +93bp). SG&A expenses were ¥87.64B (previous year: ¥83.29B, +5.2%), primarily due to higher personnel expenses, led by salaries and allowances of ¥40.53B (previous year: ¥38.67B), increasing at a faster pace than revenue growth (+3.8%). As a result, Operating Income was ¥3.02B (YoY +19.4%), and the operating margin was 1.71% (previous year: 1.49%). Ordinary Income was limited to ¥3.04B (YoY +4.6%), as non-operating expenses included an investment partnership loss of ¥1.095B (compared with investment partnership income of ¥0.196B in the previous year), which restrained growth. Extraordinary losses were ¥0.828B (including a ¥0.074B loss on disposal of fixed assets and a ¥0.148B impairment loss on investment securities), representing temporary factors. Corporate income taxes and other taxes of ¥3.93B were recorded against income before taxes of ¥2.30B, resulting in an effective tax rate of 170.8%. Net Income attributable to owners of the parent remained negative at ¥-1.76B (previous year: ¥-1.82B). In conclusion, the Company achieved higher revenue and profit through the Ordinary Income level, but Net Income remained negative due to the impact of the tax burden and extraordinary losses.
As the Company operates as a single segment, no business-level breakdown is provided; however, regional performance is disclosed. Japan expanded both revenue and profit, with external revenue of ¥129.51B (previous year: ¥123.57B, +4.8%) and Operating Income of ¥16.24B (previous year: ¥13.95B, +16.4%). Overseas external revenue remained at ¥46.72B (previous year: ¥46.25B, +1.0%), while the operating loss widened to ¥3.75B (previous year: ¥2.31B). Eliminations or corporate expenses were ¥-9.47B (previous year: ¥-9.11B). While improved profitability in the Japan Business supported consolidated profit, deteriorating profitability in the Overseas Business was an offsetting factor.
【Profitability】The operating margin was 1.71% (previous year: 1.49%, +22bp), the Ordinary Income margin was 1.72% (previous year: 1.71%, flat), and the gross profit margin was 51.5% (previous year: 50.5%, +93bp), confirming improvement at the upper levels of the income statement. ROE, however, remained low at -0.4%, reflecting the loss in Net Income attributable to owners of the parent. 【Cash Quality】The effective tax rate of 170.8% resulted from recording corporate income taxes and other taxes of ¥3.93B against income before taxes of ¥2.30B, significantly impairing the quality of earnings for the period. Amortization of goodwill of ¥2.62B is a structural factor weighing on Operating Income as an ongoing non-cash expense. 【Investment Efficiency】Total assets contracted to ¥907.88B (previous year: ¥1,081.13B, -16.0%), and quarterly total asset turnover was 0.194x. Goodwill of ¥48.16B represented 12.1% of net assets, while intangible fixed assets of ¥89.66B accounted for 9.9% of total assets. 【Financial Soundness】The Equity Ratio increased to 43.8% (previous year: 36.0%, +7.8pt). Short-term liquidity was sound, with a current ratio of 156.3% and a quick ratio of 148.3%. Cash and deposits of ¥151.58B exceeded total interest-bearing debt of ¥124.44B, securing net cash of approximately ¥27.14B. Interest coverage was 7.34x, indicating sufficient debt-servicing capacity.
Cash and deposits were ¥151.58B, down ¥87.38B (-36.6%) from ¥238.96B in the same period of the previous year. At the same time, accounts receivable declined substantially to ¥329.41B (previous year: ¥424.81B, -¥95.40B), while accounts payable also decreased to ¥216.09B (previous year: ¥270.82B, -¥54.73B). Inventories increased to ¥29.48B (previous year: ¥22.60B, +¥6.88B). These movements suggest that changes in operating assets and liabilities were the primary cause of the decline in cash levels. Since interest-bearing debt remained broadly flat year on year at ¥124.44B, changes in working capital, rather than financing activities, appear to have affected cash management during the period. Cash and deposits of ¥151.58B continued to exceed interest-bearing debt, maintaining the net cash position.
Recurring earnings consisted of Operating Income from advertising-related activities and non-operating income of ¥1.87B, primarily comprising dividend income of ¥1.29B. Meanwhile, non-operating expenses included an investment partnership loss of ¥1.095B, reversing from investment partnership income of ¥0.196B in the previous year; this was a highly temporary item that restrained growth in Ordinary Income. Extraordinary items comprised extraordinary income of ¥0.09B and extraordinary losses of ¥0.828B (including a ¥0.074B loss on disposal of fixed assets and a ¥0.148B impairment loss on investment securities), resulting in a net temporary impact of ¥-0.738B. Corporate income taxes and other taxes of ¥3.93B were recorded against income before taxes of ¥2.30B, producing an abnormally high effective tax rate of 170.8% and directly pressuring Net Income attributable to owners of the parent of ¥-1.76B. Comprehensive income was ¥0.46B (¥0.54B attributable to owners of the parent), a difference of approximately +¥2.30B from Net Income of ¥-1.76B. This divergence resulted from changes in the valuation of other securities and foreign exchange, including a ¥1.91B gain on valuation difference on securities and a ¥0.32B foreign currency translation adjustment, and does not reflect recurring earnings power.
The Q1 progress rates against the full-year Company forecasts (Revenue of ¥910.0B, Operating Income of ¥46.7B, Ordinary Income of ¥47.0B, and Net Income attributable to owners of the parent of ¥26.0B) were 19.4% for Revenue, 6.5% for Operating Income, and 6.5% for Ordinary Income. Compared with the standard progress benchmark of 25%, Revenue was 5.6pt below and profit items were 18.5pt below. However, the advertising industry tends to be weighted toward the second half, so simple comparisons require caution. Net Income attributable to owners of the parent began at a loss of ¥-1.76B against the full-year plan for profit of ¥26.0B. Improvement in investment partnership gains and losses and normalization of the effective tax rate in the second half are prerequisites for achieving the full-year target. No revisions were made to the earnings forecast or dividend forecast during the quarter.
The Company has set its annual dividend forecast at ¥32, with no revisions made during the quarter. The Payout Ratio against forecast EPS of ¥72.42 is 44.2%. Although Net Income attributable to owners of the parent was negative at ¥-1.76B in Q1, the full-year plan assumes profit of ¥26.0B. Considering the financial foundation represented by an Equity Ratio of 43.8% and net cash of approximately ¥27.14B, the Company appears to retain sufficient capacity to execute its current dividend plan.
Deterioration in Overseas Business profitability: The operating loss of the Overseas segment widened to ¥3.75B (previous year: ¥2.31B), while external revenue remained at ¥46.72B (+1.0%). As the overseas revenue ratio has risen to 29.3%, improving profitability is a challenge for consolidated earnings.
Persistently abnormally high effective tax rate: Corporate income taxes and other taxes of ¥3.93B were recorded against income before taxes of ¥2.30B, resulting in an effective tax rate of 170.8%. If the tax burden does not normalize, it may contribute to continued losses in Net Income attributable to owners of the parent.
Volatility in investment partnership gains and losses: An investment partnership loss of ¥1.095B was recorded in non-operating expenses, reversing from investment partnership income of ¥0.196B in the previous year. The magnitude of fluctuations in this item is substantial and affects the stability of Ordinary Income.
The gross profit margin improved to 51.5% (previous year: 50.5%), and Operating Income increased by +19.4%. However, Net Income attributable to owners of the parent remained negative at ¥-1.76B due to investment partnership gains and losses below the operating level and the abnormally high effective tax rate. This suggests a structure in which improvements at the operating level have not translated into bottom-line profit.
Cash and deposits decreased by ¥87.38B year on year, while accounts receivable and accounts payable also contracted substantially, suggesting that changes in working capital items may have affected cash levels. The Equity Ratio increased to 43.8% (previous year: 36.0%), indicating an improvement in financial soundness.
In the Overseas Business, the operating loss widened from ¥2.31B to ¥3.75B despite external revenue growth of +1.0%. The impact of changes in the regional earnings structure on future consolidated profit remains an area requiring continued monitoring.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit five-year fade period). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear (bearish) | ¥1,018 |
| base (base case) | ¥1,032 |
| bull (bullish) | ¥1,050 |
| Calculation Assumption | Value |
|---|---|
| Book value per share (BPS) | ¥1,106 |
| Adjusted forecast EPS | ¥75.9 |
| Cost of equity r | 9.27% (10-year Japanese government bond 2.77% + equity risk premium 6.00% + size premium 0.50%) |
| Residual income persistence coefficient ω / Explicit forecast period | 0.62 / 5 years |
| Assumed Payout Ratio | 44.2% |
| Forecast EPS confidence adjustment | ×1.049 (based on the historical guidance achievement rate of peer companies) |
| Implied PBR / PER |
Sensitivity: ¥1,004–¥1,062 at cost of equity ±1%, and ¥1,030–¥1,034 at ω±0.1.
Notes:
(Calculation model: Residual Income Model / Interest rate reference month: 2026-07 / This value does not forecast or guarantee the future share price.)
This report is an earnings analysis document automatically generated by AI based on XBRL earnings summary data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own discretion and responsibility, after consulting professionals as necessary.
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| 0.93x / 13.6x |