IFIS Japan (7833) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 5.5% YoY to ¥5.859bn, while ordinary profit increased 3.4% to ¥678m.

• Operating profit declined 3.0% to ¥677m and net income fell 5.9% to ¥422m, reflecting acquisition costs and segment challenges.

• TenNine Communication’s consolidation added the language solutions segment and contributed to the FY2025 growth outlook.

Financial highlights

• Revenue reached 103% of plan; ordinary profit was 94% and net income 91% of plan.

• Consolidated expenses rose 6.7% YoY to ¥5.18bn, including increases of 9.3% in labor costs, 4.9% in outsourcing and 8.9% in other expenses.

• Operating cash flow was ¥582m, investing cash flow was -¥1.043bn and financing cash flow was -¥178m.

• Total assets increased ¥674m to ¥6.866bn; liabilities rose ¥424m to ¥1.196bn, while equity reached ¥5.670bn.

• Year-end cash and cash equivalents were ¥4.431bn, down ¥639m YoY.

Outlook and guidance

• FY2025 revenue forecast: ¥7.15bn, up 22% YoY; operating and ordinary profit ¥770m each; net income ¥510m.

• FY2025 dividend forecast is ¥21.50 per share, up ¥2.00 from FY2024.