Forside Co (2330) Q1 2024 earnings summary

Executive summary

• Q1 FY2024 operating revenue was ¥989.6 million, down 6.1% year-over-year, as main businesses could not offset the previous year's sales surge.

• Operating loss widened to ¥28.5 million, and net loss attributable to shareholders was ¥38.4 million, reversing a profit in the prior year.

• Main businesses (Prize and Real Estate) saw revenue declines due to post-pandemic demand normalization and cost pressures.

• AI-related business launched in Q1, contributing ¥6.0 million in sales and ¥5.6 million in segment profit.

Financial highlights

• Operating revenue: ¥989.6 million (down 6.1% YoY, 93.9% of prior year Q1).

• Gross profit: ¥447 million (99.2% of prior year Q1).

• SG&A expenses increased to ¥476 million (103.8% year-over-year).

• Operating loss: ¥28.5 million; ordinary loss: ¥24 million; net loss: ¥38.4 million.

• Comprehensive loss: ¥35.6 million (vs. ¥5.5 million comprehensive income YoY).

Outlook and guidance

• Full-year consolidated operating revenue forecasted at ¥5,088 million, up 5.6% year-over-year.

• Full-year operating profit projected at ¥103 million (+96.4% YoY); net profit forecasted at ¥100 million (−11.6% YoY).

• Dividend forecast remains undecided, pending future performance.