Happinet (7552) Q2 2025 earnings summary

Executive summary

• Net sales rose 4.7% year-over-year to ¥168.5 billion in the first half of FY2024, with operating profit up 38.0% to ¥6.5 billion and profit attributable to owners of parent up 6.2% to ¥4.4 billion.

• Comprehensive income for the period was ¥4.61 billion, nearly flat year-over-year.

• Growth was driven by strong performance in the Toy and Amusement businesses, while the Video-Game business saw declines due to sluggish hardware sales and lack of hit software.

Financial highlights

• Gross profit increased to ¥21.68 billion from ¥18.02 billion year-over-year, with gross margin improving from 11.2% to 12.9%.

• SG&A expenses rose 14.0%, and capital expenditures nearly doubled to ¥1.2 billion.

• Cash and cash equivalents at period end increased to ¥31.7 billion.

• Total assets grew to ¥115.7 billion, and net assets reached ¥52.5 billion.

• Ordinary profit rose 35.9% to ¥6.66 billion.

Outlook and guidance

• Full-year net sales are projected at ¥330.0 billion, a 5.8% decrease year-over-year.

• Operating income is forecast to rise 10.1% to ¥7.8 billion, with ordinary income up 10.9% to ¥8.0 billion.

• Profit attributable to owners of parent is expected to decline 24.0% to ¥5.0 billion.

• Annual dividend per share is planned at ¥50, with total annual dividend at ¥100 per share and a target payout ratio of 40%.