BEENOS (3328) Q3 2024 earnings summary

Executive summary

• Q3 GMV grew 11.4%–21.4% YoY, led by strong Global Commerce and record Buyee growth; sales and operating profit declined due to Value Cycle deconsolidation and no investment sales.

• Net sales for FY2024 Q3 were ¥20,367 million (−7.7% YoY); operating income fell 46.6% to ¥1,424 million; net income rose 35.0% to ¥1,685 million, driven by special profit from Value Cycle transfer.

• Value Cycle segment deconsolidated after Q2; special profit of ¥800 million–¥1 billion booked.

• Entertainment segment saw decreased GMV and sales due to fewer live events, with pre-sales for large events expected to boost Q4.

Financial highlights

• Q3 consolidated GMV: ¥26.8B (+11.4% YoY) to ¥85.67B (+21.4% YoY); Net sales: ¥4.2B–¥20.37B (−42.4% to −7.7% YoY); Operating income: ¥0.75B–¥1.42B (−19.2% to −46.6% YoY).

• Net income per share (basic) was ¥139.10, up from ¥100.76 YoY.

• E-Commerce GMV: ¥26.6B (+11.2% YoY); Global Commerce GMV: ¥66.7B (+33.8% YoY); Entertainment GMV: ¥10.2B (+6.0% YoY).

• SG&A expenses decreased with Value Cycle deconsolidation, but SG&A ratio increased.

• Gross margin for Q3 was 44.6%, down from 49.5% YoY.

Outlook and guidance

• FY2024 forecast: GMV ¥108.0B, net sales ¥24.5B (−24.6% YoY), operating income ¥2.1B (−53.4%), net income ¥1.56B (−29.0%).

• Net income per share for the year is projected at ¥128.25.

• Midterm goal: ¥5B in operating income by FY2028, focusing on E-Commerce growth, new businesses, and M&A.