Ateam Holdings (3662) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue was ¥5,677m, down 5.0% YoY; EBITDA was ¥308m and operating income ¥227m, returning to positive territory.

• Profitability improved in both segments despite lower revenue, supported by cost control, optimized advertising spend, D2C growth and profitable entertainment collaborations.

Financial highlights

• Revenue was ¥5,677m, down 5.0% YoY; gross profit was ¥4,824m versus ¥5,079m, and SG&A was ¥4,596m versus ¥5,250m.

• EBITDA improved to ¥308m from a ¥133m loss, operating income to ¥227m from a ¥170m loss, and ordinary income to ¥232m from a ¥137m loss.

• Net income attributable to parent shareholders was ¥129m versus a ¥142m loss; comprehensive income was ¥135m versus a ¥74m loss.

• Revenue, EBITDA, operating income and net income declined QoQ by 1.0%, 32.2%, 45.5% and 65.6%, respectively.

Outlook and guidance

• FY2025 forecasts remained unchanged: revenue ¥25,000m, EBITDA ¥1,250m, operating income ¥1,000m, ordinary income ¥1,000m and net income ¥560m.

• FY2025 annual dividend forecast remained ¥22 per share; the forecast payout ratio is 72.9%.

• FY2025–FY2028 plan targets ¥34bn revenue, ¥4bn EBITDA, ¥2bn operating income and an average total return ratio of at least 100%.

• Strategy focuses on business-support services, M&A-led synergies and digital marketing growth targeted from FY2026 onward.