BASE (4477) Q2 2024 earnings summary

Executive summary

• Group profitability improved with all business segments returning to profit and gross profit margins rising.

• Net sales and gross profit increased by 31.4% and 33.9% YoY, driven by higher Group GMV and Other Business.

• Operating profit and ordinary profit turned positive, reversing prior year losses.

• Acquisition of want.jp extends cross-border EC capabilities and is expected to contribute to consolidated results.

• Launched PAY.JP YELL BANK to provide financial value to all Group merchants.

Financial highlights

• H1 FY2024 net sales: ¥7,325 million (+36.7% YoY); gross profit: ¥3,237 million (+39.9% YoY); operating profit: ¥508 million (vs. loss prior year).

• BASE business GMV: ¥35,931 million (+9.5% YoY); PAY.JP business GMV: ¥50,029 million (+52.4% YoY).

• Other business net sales up 227.0%–260.5% YoY, mainly from YELL BANK improvements.

• Cash and deposits at ¥21,702 million as of June 2024; total assets ¥39,476 million (+5.8% from Dec 2023).

• EPS for the period was ¥3.82, compared to a loss per share of ¥3.27 in the prior year.

Outlook and guidance

• Full-year FY2024 net sales forecast revised up to ¥15,500 million (32.7% YoY growth); gross profit to ¥6,900 million.

• EBITDA and operating income expected to be ¥227 million and ¥200 million positive, respectively.

• want.jp expected to add ¥403 million to net sales and ¥34 million to operating profit in FY2024.

• GMV forecast for BASE slightly reduced, PAY.JP GMV forecast raised due to strong growth.

• Medium-term target: ¥10 billion gross profit in FY2026; long-term aim to improve EBITDA margin.