Extreme (6033) Q4 2024 earnings summary

Executive summary

• FY2023 revenue reached ¥10,217m, 115.9% of prior year and above the ¥10bn medium-term target; operating income rose to ¥1,097m, 107.1% of prior year.

• Both digital talent and contract development grew revenue; contract development profit gains offset lower digital talent segment profit.

Financial highlights

• Revenue was ¥10,217m, 115.9% of prior year; gross profit was ¥2,896m, 115.7%; operating income was ¥1,097m, 107.1%.

• Ordinary income was ¥1,448m, 123.3% of prior year; net income attributable to owners of the parent was ¥1,034m, 127.0%.

• FY2023 operating income exceeded the latest forecast, reaching 104.5% of plan.

Outlook and guidance

• FY2024 revenue is planned at ¥11,000m, 107.6% of FY2023; operating income ¥1,000m, 91.1%; ordinary income ¥1,050m, 72.5%; net income ¥710m, 68.6%.

• FY2024 EPS is planned at ¥129.06, 68.6% of FY2023 EPS.

• Planned segment revenue: digital talent ¥7,318m, 119.5% of prior year; contract development ¥3,476m, 88.7%; content properties ¥737m, 177.2%.

• Contract development revenue is forecast lower following a subsidiary restructuring; content properties plans for conservative royalty income and contribution from Dragami Games products.

• Recruitment of employees and freelance talent is set to increase SG&A and reduce operating profit and margin, as investment for growth beyond FY2024.