i-mobile Co (6535) Q3 2024 earnings summary

Executive summary

• Achieved record-high cumulative revenue and operating profit for the nine months ended Q3 FY2024, with revenue at ¥16,329 million (+14.3% YoY), operating profit at ¥3,729 million (+9.2% YoY), and net profit at ¥2,605 million (+13.1% YoY).

• The business is structured into Consumer (mainly hometown tax/furusato nozei) and Internet Advertising segments.

• Consumer business drove growth through increased donations and membership, while Internet Advertising saw a revenue decline due to industry headwinds and lower ad platform sales.

• Adjusted segment allocation methods impacted reported segment profits.

Financial highlights

• Consolidated revenue for Q3 YTD: ¥16,329 million (+14.3% YoY), operating profit: ¥3,729 million (+9.2% YoY), net profit: ¥2,605 million (+13.1% YoY).

• Consumer business revenue: ¥14,199 million (+19.4% YoY), operating profit: ¥3,549 million (+18.9% YoY).

• Internet advertising revenue: ¥2,112 million (-11.9% YoY), operating profit: ¥316 million (-39.3% YoY).

• Operating margin: 22.8% (down from 23.9% YoY).

• EPS for the period was ¥45.35, compared to ¥38.16 in the prior year.

Outlook and guidance

• FY2024 full-year forecast: revenue ¥20,000 million (+21.8% YoY), operating profit ¥3,800 million (+7.8% YoY), net profit ¥2,600 million (+8.2% YoY).

• Consumer business expected to grow 28% in revenue, internet advertising to decline 7.6%.

• No changes to previously announced earnings or dividend guidance.

• Strategic focus on expanding unique return gifts, increasing partner municipalities, and strengthening promotional activities.