Ateam Holdings (3662) Q4 2024 earnings summary

Executive summary

• FY2024 revenue fell 13.2% YoY to ¥23,917 million; operating income rose 3.4% to ¥562 million and net income rose to ¥953 million, including a ¥491 million gain on the Lalune transfer.

• Weaker Lifestyle Support and Entertainment results were partly offset by reduced E-Commerce losses; FY2025 guidance targets higher revenue and operating income but lower net income.

Financial highlights

• FY2024 ordinary income was ¥609 million, down 14.4%; net income attributable to parent shareholders rose 565.1% to ¥953 million.

• Q4 revenue was ¥5,736 million, down 9.0% YoY and 8.5% QoQ; operating income was ¥418 million, up 145.4% YoY and 26.6% QoQ.

• Q4 net income was ¥376 million, up 165.5% YoY and down 51.2% QoQ; ordinary income was ¥396 million, up 37.0% YoY.

• FY2024 operating margin was 2.4%, ROE 9.6%, ROIC 3.2% and equity ratio 62.9%; EPS was ¥51.36.

Outlook and guidance

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

• FY2025 revenue guidance is 104.5% of FY2024; Digital Marketing revenue is forecast at ¥20,700 million and Entertainment revenue at ¥4,300 million.

• FY2025 is the first year of the FY2025–FY2028 plan; priorities include stronger business management, profit growth and expansion of corporate digital-marketing support.

• The four-year plan targets FY2028 revenue of ¥34 billion, EBITDA of ¥4 billion and operating income of ¥2 billion.