Cross Marketing Group (3675) Q4 2024 earnings summary

Executive summary

• Full-year revenue reached ¥26,185 million, up 4.3% year-over-year, with net income rising 18.5% and operating profit down 5.5%.

• Revenue, ordinary profit, and net income met forecasts, driven by strong Digital Marketing performance and new subsidiary consolidations.

• Q4 revenue surged 26% year-over-year, with operating profit turning positive from a loss in the prior year.

• Comprehensive income grew 15.8% year-over-year to ¥1,285 million.

Financial highlights

• Digital Marketing revenue grew 18% year-over-year, while Data Marketing fell 10% and Insight rose 6%.

• Gross profit margin declined to 39.8% from 41.4%, and operating profit margin dropped to 7.0% from 7.8%.

• Basic earnings per share increased to ¥62.06 from ¥51.00 year-over-year.

• Cash and cash equivalents at year-end were ¥7,377 million, up from ¥6,478 million.

• Net assets per share rose to ¥367.19 from ¥312.99 year-over-year.

Outlook and guidance

• FY2025/6 targets: revenue of ¥30,000 million (+14.6%), operating profit of ¥3,000 million (+62.7%), and net income of ¥1,800 million (+50.9%).

• Digital Marketing expected to grow 22%, Data Marketing 14%, and Insight 4% year-over-year.

• Dividend forecast raised to ¥14.00 per share, up from ¥13.00.