Ateam Holdings (3662) Q3 2024 earnings summary

Executive summary

• Q3 FY2024 revenue was ¥6,266m, down 7.5% YoY; operating income rose 102.9% to ¥330m and net income rose to ¥771m, partly reflecting the Lalune transfer gain.

• Nine-month revenue declined 14.4% to ¥18,181m and operating income fell 61.4% to ¥144m; net income attributable to parent shareholders rose to ¥577m.

• Growth strategy shifts toward business support, combining digital marketing, SaaS and consulting with acquisitions and business synergies.

• FY2024 revenue guidance was cut 17.1% to ¥23,800m; operating income and net income forecasts remained ¥600m and ¥780m.

Financial highlights

• Q3 revenue was ¥6,266m, operating income ¥330m, ordinary income ¥346m and net income ¥771m; YoY changes were -7.5%, +102.9%, +70.6% and +402.1%.

• Q3 revenue rose 5.5% QoQ; operating income improved from a ¥15m Q2 loss to ¥330m, and net income from a ¥51m loss.

• Nine-month gross profit was ¥15,473m and SG&A was ¥15,329m; operating income was ¥144m and ordinary income ¥212m.

• Nine-month net income included ¥491m of extraordinary income from the Lalune business transfer.

• Nine-month results represented 76.4% of revenue, 24.1% of operating income and 74.0% of net income full-year forecasts.

Outlook and guidance

• FY2024 full-year forecasts remain ¥600m operating income, ¥600m ordinary income and ¥780m net income; revenue guidance fell ¥4,900m to ¥23,800m.

• Q4 operating income forecast was ¥456m; continued cost optimization and business management were expected to support the ¥600m annual target.

• FY2025 operating income target is ¥2.6bn–¥3.1bn; priorities include growth initiatives, business turnarounds, stronger governance and faster M&A execution.

• Year-end dividend forecast rose to ¥22 per share, comprising ¥18 ordinary and ¥4 special; the ordinary dividend increased by ¥2.

• Priorities include renewed growth initiatives, recovery in weaker-profitability businesses and fixed-cost optimization to meet Prime Market listing criteria by FY2025.