BELLSYSTEM24 (6183) Q4 2025 earnings summary

Executive summary

• Revenue for FY2024 decreased 3.4% year-over-year to 143.6 billion yen, mainly due to the termination of COVID-19-related business, while net income attributable to owners of parent rose 6.1% to 8.0 billion yen, supported by profit improvement activities and a gain on sale of subsidiaries.

• Fundamental business revenue grew 1.4% year-over-year, offsetting some declines from national policy-related projects.

• Strategic initiatives included the acquisition of SKY Perfect Customer-relations Corporation, expansion in Taiwan, and the launch of generative AI-driven services.

• The Others segment posted a 32.6% revenue drop and a loss before income taxes, impacted by a 1,012 million yen impairment loss on content business goodwill.

• ESG and diversity initiatives were recognized with Gold rank, Prime certifications, and inclusion in the MSCI Nihonkabu ESG Select Leaders Index.

Financial highlights

• Operating income rose 0.9% year-over-year to 11.6 billion yen; net income attributable to owners of parent increased 6.1% to 8.0 billion yen.

• Gross profit declined 6.4% year-over-year due to the loss of high-margin COVID-19 business.

• Free cash flow improved by 3.21 billion yen to 13.7 billion yen.

• ROE remained stable at 11.7%; net interest-bearing debt decreased to 47.06 billion yen, with net DER at 0.67.

• Basic earnings per share increased to 108.81 yen from 102.61 yen.

Outlook and guidance

• FY2025 revenue is forecast to rise 4.5% year-over-year to 150.0 billion yen, with operating income up 3.6% to 12.0 billion yen and net income up 1.2% to 8.1 billion yen.

• Growth is expected in both smart contact center and smart business support segments, driven by outsourcing demand and new BPR consulting projects.

• Annual dividend is projected to remain at 60 yen per share, maintaining a payout ratio near 50%.

• The company aims to leverage generative AI and promote diversity and inclusion.