BELLSYSTEM24 (6183) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended August 31, 2024, was ¥72,040 million, down 6.1% year-over-year due to the wind-down of COVID-19-related national policy projects, despite stable performance in fundamental business areas.

• Operating profit declined 26.3% year-over-year to ¥4,810 million, reflecting lower high-margin project contributions.

• Net income attributable to owners of the parent fell 32.8% year-over-year to ¥3,024 million.

• Comprehensive income decreased 41.2% year-over-year to ¥2,846 million.

Financial highlights

• Gross profit for the period was ¥12,733 million, down 9.8% year-over-year.

• Free cash flow increased to ¥10,930 million from ¥6,290 million year-over-year.

• Basic earnings per share dropped to ¥41.12 from ¥61.20 year-over-year.

• Total assets as of August 31, 2024, were ¥173,334 million, slightly down from ¥175,465 million at the previous fiscal year-end.

• Cash and cash equivalents rose to ¥9,036 million at period-end, up from ¥7,213 million at the previous year-end.

Outlook and guidance

• Full-year revenue forecast for fiscal year ending February 28, 2025, is ¥153,000 million, up 2.9% year-over-year.

• Operating income is projected at ¥12,500 million, an 8.9% increase year-over-year.

• Net income attributable to owners of the parent is forecast at ¥8,000 million, up 6.0% year-over-year.

• Revenue progress rate at 47.1% of full-year forecast; operating profit at 38.5%.

• Annual dividend forecast remains unchanged at ¥60 per share, with a consolidated payout ratio target of 50%.