BELLSYSTEM24 (6183) Q1 2025 earnings summary

Executive summary

• Revenue for the three months ended May 31, 2024, was ¥36.8B, down 6.5% year-over-year due to a sharp drop in COVID-19-related business, despite growth in core operations.

• Operating profit declined 37.2% year-over-year to ¥2.6B.

• Net income attributable to owners of parent fell 42.7% year-over-year to ¥1.7B.

• Basic earnings per share decreased to ¥22.94 from ¥40.02 in the prior year period.

• Fundamental business revenue increased slightly, supported by new projects and subsidiary consolidation.

Financial highlights

• Gross profit for the quarter was ¥6.56B, down 12.5% year-over-year.

• Total comprehensive income for the quarter was ¥1.78B, a 43.2% decrease year-over-year.

• Free cash flow improved to ¥5.7B from ¥4.36B year-over-year.

• Cash flows from operating activities increased to ¥7.07B from ¥5.58B year-over-year.

• Net cash used in investing activities was ¥1.37B, up from ¥1.22B in the prior year.

Outlook and guidance

• Full-year revenue forecast for FY ending Feb. 2025: ¥153B (24.1% progress in Q1), up 2.9% year-over-year.

• Operating profit forecast: ¥12.5B (20.8% progress in Q1), up 8.9% year-over-year.

• Profit attributable to owners of parent forecast: ¥8B (21.1% progress in Q1), up 6.0% year-over-year.

• Annual dividend per share is planned at ¥60.00, unchanged from the previous year.