i-mobile Co (6535) Q2 2024 earnings summary

Executive summary

• H1 FY07/24 net sales reached a record ¥14,321m, up 14.1% YoY; operating profit rose 10.7% to ¥3,458m and net profit rose 14.7% to ¥2,415m.

• Consumer Service growth more than offset weaker Online Advertising; FY24 forecasts remained unchanged.

Financial highlights

• Ordinary profit increased 12.4% YoY to ¥3,469m; gross profit was ¥14,298m versus ¥12,529m, while SG&A rose to ¥10,840m from ¥9,405m.

• H1 profit before income taxes was ¥3,509m; total income taxes were ¥1,093m, including a deferred tax benefit of ¥855m.

• H1 results reached 92.1% of net sales forecast, 105.7% of operating profit forecast and 107.4% of net profit forecast.

Outlook and guidance

• FY07/24 guidance remained unchanged: net sales ¥20,000m, operating profit ¥3,800m, ordinary profit ¥3,739m and net profit ¥2,600m.

• FY guidance implies sales growth of 21.8%, operating profit growth of 7.8%, and operating and net profit margins of 19.0% and 13.0%, respectively.

• Consumer Service forecast: sales ¥17,000m, up 28.0%, and segment profit ¥3,300m, up 10.9%; Online Advertising forecast: sales ¥2,940m, down 7.6%, and profit ¥670m, up 0.4%.

• Growth plans emphasize hometown tax donations, renewed App Operation growth, Green Energy monetization and M&A; FY24 basic EPS forecast is ¥45.28 after the stock split.