BELLSYSTEM24 (6183) Q2 2027 earnings summary

Executive summary

• H1 FY2027 revenue was ¥73,159 million, flat YoY; operating income rose 4.4% to ¥6,173 million and net income attributable to owners rose 12.0% to ¥4,284 million.

• Nearly flat revenue and gross profit accompanied higher operating income, supported by profit improvement measures including site consolidation.

Financial highlights

• Revenue was ¥73,159 million, up 0.0% YoY; gross profit was ¥13,577 million versus ¥13,565 million, with gross margin of 18.6% versus 18.5%.

• Operating income rose ¥259 million YoY to ¥6,173 million; operating margin was 8.4% versus 8.1%.

• Income before taxes increased 5.1% to ¥6,059 million; net income attributable to owners rose 12.0% to ¥4,284 million, partly reflecting higher equity-method earnings and lower Q1 income taxes.

• Basic EPS was ¥57.63 versus ¥51.59; total comprehensive income was ¥4,472 million versus ¥3,917 million.

• SG&A declined ¥0.20 billion YoY as lower depreciation offset higher personnel costs from wage increases; equipment-related costs rose.

Outlook and guidance

• FY2027 guidance remains unchanged: revenue ¥152,000 million, operating income ¥13,000 million, income before taxes ¥12,600 million and net income attributable to owners ¥8,500 million; H1 progress was 48.1%, 47.5% and 50.4% for revenue, operating income and attributable net income.

• Revenue and operating income were below 50% of annual targets but nearly in line with H1 targets; attributable net income progress exceeded 50%, partly due to a one-off Q1 tax decline.

• HOL operations are planned to begin in January 2027 with ~500 operators; revenue is expected later than initially forecast as the project pipeline expands.

• Annual dividend forecast remains ¥60 per share, with ¥30 per half-year payment; policy targets a 50% consolidated payout ratio while seeking dividend growth through higher profits.