BASE (4477) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 rose 27.3% year-over-year to ¥4,571 million, with operating profit up 89.1% to ¥389 million and net income attributable to owners up 51.2% to ¥322 million.

• All business segments except want.jp posted strong growth; want.jp, consolidated in August 2024, reported a small loss.

• BASE and PAY.JP businesses delivered GMV and profit growth in line with expectations; YELL BANK saw Net Sales up 44.5% YoY.

• A paid model for the Pay ID shopping app will launch July 1, expected to improve monetization.

• Completed tender offer for Estore Corporation and a ¥1.0 billion share buyback; new tender offer for BASE shares by Mr. Maki underway.

Financial highlights

• Q1 FY2025 Net Sales: ¥4,571 million (+27.3% YoY); Gross Profit: ¥2,065 million (+31.9% YoY); Gross Profit Margin: 45.2%.

• Operating Profit: ¥389 million (+89.1% YoY); Net Income Attributable to Owners: ¥322 million (+51.2% YoY).

• Group GMV: ¥96,643 million (+15.2% YoY); EBITDA: ¥391 million (+86.6% YoY).

• Earnings per share for Q1 2025 were ¥2.79, up from ¥1.85 in Q1 2024.

• Cash and cash equivalents at March 2025: ¥23.3 billion, maintaining a strong financial base.

Outlook and guidance

• FY2025 forecast: Net Sales ¥19,600 million (+22.6% YoY), Gross Profit ¥9,085 million (+26.8% YoY), Operating Profit ¥1,000 million (+29.4% YoY), Net Income ¥1,248 million (+266.8% YoY).

• Strategic investments of ~¥300 million included in SG&A; Estore consolidation impact not yet reflected.

• Monetization of Pay ID and new shop acquisition initiatives expected to drive BASE Business growth in H2 2025.

• Focus remains on balancing top-line growth and profitability, with continued M&A and share repurchases.