Cross Marketing Group (3675) Q1 2025 earnings summary

Executive summary

• Q1 revenue reached 6.76 billion yen, up 20% year-over-year, with operating profit at 360 million yen, marking a return to profitability.

• Net income attributable to owners returned to positive at 142 million yen, compared to a loss in the prior year.

• Record Q1 revenue driven by business recovery and contributions from newly consolidated companies.

• Digital Marketing, Data Marketing, and Insight businesses all contributed to improved profitability.

Financial highlights

• Revenue increased 20% year-over-year to 6.76 billion yen; gross profit rose 25% to 2.52 billion yen, with gross margin improving by 1.4 points to 37.3%.

• Operating profit recovered to 360 million yen from a loss in the prior year; operating margin reached 5.3%.

• Basic earnings per share improved to 7.41 yen from a loss of 7.08 yen year-over-year.

• Net assets stood at 6.85 billion yen, with an equity ratio of 44.4%.

• SG&A expenses rose 6% due to new consolidated companies but were offset by higher gross profit.

Outlook and guidance

• Full-year forecast maintained: targeting revenue of 30 billion yen (+15% YoY) and operating profit of 3 billion yen (+63% YoY).

• Net income attributable to owners is forecast at 1.8 billion yen, up 50.9% year-over-year.

• Basic earnings per share for the year is expected to be 93.64 yen.

• Dividend forecast raised to 14.0 yen per share, with a target payout ratio of approximately 15%.