GENDA (9166) investor relations material

Executive summary

• Revenue for the six months ended July 31, 2025, rose 49.3% year-over-year to ¥73,973 million, driven by aggressive M&A and expansion in core entertainment businesses.

• Adjusted EBITDA before one-off M&A expenses increased 51.2% year-over-year to ¥9,252 million; adjusted EBITA up 34% to ¥5,490 million, excluding one-off M&A expenses.

• Net income before amortization of goodwill was ¥2,652 million (up 7.3% year-over-year) before M&A expenses.

• The group executed 15 M&A transactions, expanding both domestically and internationally, and now operates about 400 amusement arcades in Japan and 200 abroad.

• A "BBB+" credit rating was assigned, and financing was diversified through a follow-on offering and bond issuance.

Financial highlights

• Revenue for 2Q YTD rose 49% year-over-year to ¥73.97bn; adjusted EBITDA increased 51% to ¥9.25bn; adjusted EBITA up 34% to ¥5.49bn; adjusted net income before goodwill amortization up 7% to ¥2.65bn.

• M&A-related expenses totaled ¥0.93bn for 2Q YTD, impacting operating income and below.

• 2Q results exceeded targets, with adjusted EBITDA on pace for ¥23.8bn, above the FY2026/1 target of ¥22.4bn.

• Balance sheet shows total assets at ¥180.05bn, net debt/EBITDA at 2.5x, and capital adequacy ratio at 32.8%.

• Net income attributable to owners of parent fell 77.8% year-over-year to ¥310 million, impacted by higher income taxes and M&A-related expenses.

Outlook and guidance

• FY2027/1 forecast: revenue ¥200.0bn, EBITDA ¥27.0bn, net income before goodwill amortization ¥10.4bn, assuming no further M&A.

• Full-year revenue is forecast at ¥157,000 million, up 40.4% from the previous year.

• Operating income is projected at ¥10,500 million (up 32.6%), and net income at ¥5,000 million (up 53.7%).

• EBITDA is expected to reach ¥22,000 million, a 54.9% increase year-over-year.

• North American business targets FY2030/1 revenue of ¥72.5bn, EBITDA of ¥11.0bn, and net income before goodwill amortization of ¥4.0bn.