i-mobile Co (6535) Q1 2024 earnings summary

Executive summary

• Record first-quarter sales and profits, driven by hometown tax donation demand following a system revision; results exceeded prior-year levels and forecasts.

• Consumer Service led growth, while Online Advertising declined amid Ad Network weakness and upfront investment.

Financial highlights

• Net sales were ¥5,910m, up 144.9% YoY; operating profit was ¥1,998m, up 259.0%, and ordinary profit was ¥2,016m.

• Profit attributable to owners of parent was ¥1,391m, up 253.1% YoY; comprehensive income was ¥1,400m.

• Consolidated operating margin was 33.8%, versus 23.1% a year earlier; quarterly SG&A was ¥3,892m, or 65.9% of sales.

Outlook and guidance

• FY24 forecast unchanged: net sales ¥20,000m (+21.8%), operating profit ¥3,800m (+7.8%), ordinary profit ¥3,739m (+8.2%) and parent-attributable profit ¥2,600m (+8.9%).

• Segment forecasts: Consumer Service sales ¥17,000m (+28.0%) and profit ¥3,300m (+10.9%); Online Advertising sales ¥2,940m (-7.6%) and profit ¥670m (+0.4%).

• Strategy targets hometown tax market share, advertising growth, sales infrastructure, app releases, green-energy monetization and M&A; FY25 operating-profit target is ¥4,500m.

• FY24 annual dividend forecast was ¥13.50 per share after the 3-for-1 stock split.