Densan System Holdings Co (4072) Q2 2025 earnings summary

Executive summary

• Net sales rose 6.7% year-over-year to ¥32,269 million for 2Q FY2025, driven by growth in Google business and payment agency services.

• Operating profit increased 6.0% year-over-year to ¥1,641 million; ordinary profit surged 15.2% to ¥1,844 million.

• Net income attributable to owners of parent grew 15.3% year-over-year to ¥1,252 million.

• Comprehensive income reached ¥1,250 million, up 3.0% year-over-year.

• All profit stages are progressing in line with the annual plan, so the full-year forecast remains unchanged.

Financial highlights

• Gross profit improved to ¥5,346 million from ¥4,993 million year-over-year.

• Basic earnings per share increased to ¥117.35 from ¥102.17 year-over-year.

• Total assets expanded to ¥76,478 million as of June 30, 2025, from ¥61,747 million at year-end 2024.

• Equity-to-asset ratio declined to 30.1% from 35.8% at year-end 2024.

• Net cash provided by operating activities was ¥1,047 million, down from ¥1,671 million year-over-year.

Outlook and guidance

• Full-year net sales forecasted at ¥67,500 million, up 10.2% year-over-year, led by information services growth.

• Operating profit projected to rise 51.4% to ¥3,500 million; profit attributable to owners of parent to increase 36.7% to ¥2,530 million.

• Continued investment in new service platforms (Web3, NFT, blockchain) and expansion of payment services.

• No revisions to previously announced earnings or dividend forecasts.