i-mobile Co (6535) Q1 2025 earnings summary

Executive summary

• Q1 revenue was ¥4,417 million, down 25.2% year-over-year, with operating profit at ¥1,077 million, down 46.1% year-over-year, and net income at ¥720 million, down 48.2% year-over-year, but all remain significantly higher than two years ago.

• Both Consumer and Internet Advertising segments saw declines due to last year's early donation surge and advertising budget reductions.

• The hometown tax (furusato nozei) business is expected to recover in Q2, with strong growth compared to two years prior.

• The company is investing in new business areas such as influencer marketing, app operations, and green energy, while expanding its core Furusato tax business.

• Internet advertising business faced a tough market, but app operations and media solutions showed resilience.

Financial highlights

• Q1 consolidated revenue: ¥4,417 million (74.8% of prior year, 86.6% of plan); operating profit: ¥1,077 million (53.9% of prior year, 85.5% of plan); net income: ¥720 million (51.8% of prior year, 84.8% of plan).

• Consumer segment revenue: ¥3,762 million (72.4% of prior year), operating profit: ¥1,087 million (57.2% of prior year).

• Internet advertising segment revenue: ¥644 million (91.0% of prior year), operating profit: ¥34 million (26.9% of prior year).

• EPS for Q1 was ¥12.51, compared to ¥24.20 in the previous year.

• Comprehensive income for Q1 was ¥723 million, down 48.3% year-over-year.

Outlook and guidance

• Full-year FY2025 guidance: revenue ¥23,000 million (+22.8% YoY), operating profit ¥4,500 million (+26.8% YoY), net profit ¥2,950 million (+21.9% YoY), EPS ¥51.20.

• Dividend forecast for FY2025 is ¥26.00 per share, up from ¥22.00 in FY2024.

• Consumer segment expected to drive growth with new app releases, expanded services, and increased municipal partnerships.

• Internet advertising segment aims for stable profit through portfolio restructuring and investment in growth areas.