DIP Corporation (2379) investor relations material

Executive summary

• H1 FY27 sales fell 11.4% YoY to ¥25,550m; operating income was ¥56m and net loss attributable to owners was ¥578m.

• Intensified recruiting-services competition, slower agency sales, lower unit prices and higher advertising and sales-capability investment pressured results.

• Q2 sales were ¥11.83bn, down 9% YoY; the decline narrowed from 13% in Q1 as MAU improved toward a V-shaped recovery.

• Increased advertising lifted applications and returned contracted-company growth to positive, but sales recovery was slower than forecast.

Financial highlights

• H1 gross profit was ¥22,031m versus ¥25,580m YoY; operating income declined 99.0% to ¥56m.

• H1 net loss attributable to owners was ¥579m versus net income of ¥3,715m YoY; basic EPS was -¥11.06 versus ¥71.01.

• Q2 operating income was -¥760m; advertising spend rose 2.1x, adding ¥1bn, while personnel costs increased ¥260m, partly reflecting 532 new-graduate hires.

• SG&A was ¥10,798m versus ¥9,398m YoY, reflecting higher personnel costs and advertising and sales-promotion spending.

Outlook and guidance

• FY27/2 sales guidance was revised to ¥49,000m–¥53,000m from ¥53,500m–¥57,600m; operating income guidance was revised to -¥2,500m to ¥2,500m from ¥5,000m–¥10,000m.

• Revised ordinary income guidance is -¥2,500m to ¥2,500m; net income attributable to owners is -¥2,700m to ¥700m, with EPS of -¥51.6 to ¥13.4.

• Slower-than-planned recovery amid competition and agency-business pressures prompted the revision; continued investment aims to support sales and profit growth in the following fiscal year.