Forside Co (2330) Q3 2024 earnings summary

Executive summary

• Consolidated operating revenue for Q3 FY2024 increased 2.5% year-over-year to ¥3,659 million, driven by growth in the Prize and Real Estate segments, as well as the launch of AI and logistics businesses.

• Operating profit fell sharply to ¥5.9 million (down 89.5% year-over-year), and net loss attributable to shareholders was ¥25.7 million, reversing a profit in the prior year due to increased costs in the Real Estate segment.

• Main business areas include prize (amusement), real estate, content, events, master rights, AI, and logistics, with AI and logistics launched in 2024.

Financial highlights

• Operating revenue: ¥3,659 million (up 2.5% year-over-year).

• Gross profit: ¥1,518 million (up 5.3% year-over-year).

• Operating profit: ¥5.9 million (down from ¥56 million year-over-year).

• Ordinary profit: ¥7.7 million (down from ¥50 million year-over-year).

• Net loss attributable to parent: ¥25.7 million (prior year: profit of ¥48.8 million).

• Comprehensive loss for the period was ¥26.4 million, compared to a comprehensive profit of ¥52.2 million last year.

Outlook and guidance

• Full-year consolidated operating revenue forecasted at ¥5,079 million, a 5.4% increase year-over-year.

• Full-year consolidated operating profit forecasted at ¥28 million.

• Net profit forecast at ¥44 million, reflecting a special gain from the sale of subsidiary shares.

• Per-share net income forecast is ¥1.11, factoring in increased shares from new stock issuance.