HIKARI TSUSHIN (9435) Q2 2025 earnings summary

Executive summary

• Sales, recurring operating profit, and operating profit reached record highs in the first half of FYE March 2025, exceeding initial forecasts, with revenue up 9.9% year-over-year to ¥325,783 million.

• Strong customer acquisition in electricity, gas, telecommunications, beverage, and insurance businesses drove growth.

• Operating profit increased 18.4% year-over-year to ¥57,421 million, while profit before tax and net profit declined due to higher financial expenses from currency fluctuations.

• Pure investment segment reported an earnings yield of 14.4% and look-through earnings of ¥96.7 billion.

• The company continued initiatives for decarbonization and SDGs, including renewable energy and sustainable water services.

Financial highlights

• Revenue for the first half was ¥325.7 billion, up 9% year-over-year; recurring operating profit was ¥81.0 billion (+4%), and operating profit was ¥57.4 billion (+18%).

• Net income attributable to owners of parent was ¥48.2 billion, down 22% year-over-year.

• Income before tax excluding FX gains/losses reached a record ¥83.1 billion (+32% YoY).

• Dividend income and interest income increased by 67% YoY to ¥25.0 billion.

• EBITDA for the first half was ¥64.4 billion, up 15% YoY.

Outlook and guidance

• Full-year revenue forecast is ¥620.0 billion, with recurring operating profit of ¥162.0 billion and operating profit of ¥100.0 billion.

• Net income and comprehensive income are expected to maintain strong growth, with progress rates at 50% or higher for key metrics at the first half.

• Profit attributable to owners of parent is projected at ¥90.0 billion, down 26.4% year-over-year; basic EPS forecast is ¥2,046.50.

• Dividend per share is forecast to reach a record high of ¥639, with a total shareholder return ratio expected at 44%.

• Interim and year-end dividends are set at ¥161.00 each.