HIKARI TSUSHIN (9435) Q1 2025 earnings summary

Executive summary

• Achieved record-high revenue of ¥146.1B (+4% YoY) and net income of ¥45.9B (+40% YoY) for Q1 FY25/3, driven by increased customer contracts in electricity and strong investment income.

• Operating profit rose to ¥27.2B (+13.6% YoY), with recurring operating profit and contract growth across core businesses.

• The company focuses on stable, long-term revenue streams in electricity, gas, telecom, water delivery, and insurance, while advancing sustainability initiatives.

• Comprehensive income attributable to owners of parent was ¥74.2B (+3% YoY), including one-time gains.

Financial highlights

• Income before tax surged to ¥65.7B (+38% YoY), supported by ¥16.5B in dividend and interest income (+66% YoY) and ¥21.0B in FX gains.

• Equity attributable to owners of parent increased to ¥857.1B; total assets reached ¥2,173.5B.

• Cash and cash equivalents at period end were ¥502.4B, up from ¥437.8B a year earlier.

• Cash flows from business activities declined to ¥17.1B (–56% YoY); net cash from operating activities was ¥16.1B.

• EBITDA for Q1 was ¥30.7B (+11% YoY); basic EPS for the quarter was ¥1,039.66.

Outlook and guidance

• Full-year revenue forecast is ¥620.0B (23% progress after Q1); recurring operating profit forecast is ¥162.0B (23% progress).

• Net income forecast for FY25/3 is ¥90.0B (45% progress after Q1); basic EPS projected at ¥2,038.59.

• Dividend per share forecast raised to ¥638, with regular dividends up 9% YoY excluding special dividends.

• No revision to the previously announced forecast; actual results may differ due to various factors.