U-NEXT HOLDINGS (9418) investor relations material

Executive summary

• Nine-month net sales reached ¥332,320 million, up 17.2% year-over-year, with operating profit at ¥25,233 million, up 4.2%, and ordinary profit nearly flat at ¥23,728 million.

• Profit attributable to owners of parent was ¥12,919 million, down 4.8% year-over-year due to higher interest and FX losses.

• Q3 marked the start of consolidation for the Karaoke Business and Acquiring Business, boosting segment results.

• The company completed the acquisition of XING INC., resulting in provisional goodwill recognition of ¥10,546 million.

• KPIs across all segments trended favorably in Q3.

Financial highlights

• EBITDA for the nine months increased 9.5% year-over-year to ¥35,735 million.

• Net sales for Q3 FY2026 were ¥332.3bn, up 17% year-over-year; operating profit was ¥25.2bn, up 4%.

• Basic EPS was ¥71.63, down from ¥75.22 in the prior year period, reflecting a 3-for-1 stock split.

• All key metrics (net sales, operating profit, EBITDA) exceeded 75% of full-year forecasts.

• Total assets grew to ¥335,458 million, up ¥75,675 million from the previous fiscal year-end.

Outlook and guidance

• Full-year forecast for fiscal year ending August 31, 2026: net sales of ¥424,000 million (+8.6% YoY), operating profit of ¥33,500 million (+6.1%), and profit attributable to owners of parent of ¥18,500 million (+0.6%).

• Full-year EBITDA is projected at ¥46,500 million (+8.1%), with adjusted EPS of ¥121.97 (+7.8%).

• Annual net increase in users forecast at 210,000; steady growth expected in recurring income for ICT and broadband.

• Energy business expects sales growth of ¥10.9bn and earnings growth of ¥1.5bn, despite volatility.

• Cashless payment processing expected to post an operating loss of ¥800m due to upfront investments.