Integral (5842) Q3 2024 earnings summary

Executive summary

• Achieved strong revenue and profit growth for Q3 FY2024, with revenue up 130.2% to ¥17,387mn and operating income up 152.7% to ¥13,478mn year-over-year.

• Net income for Q3 FY2024 was ¥9,344mn, up 155.7% year-over-year, and profit before income taxes reached ¥13,450mn.

• Significant exits from SKY, JRC, Mamezou, and ITOKIN, with carried interest income realized as hurdle rates were exceeded in Fund II and III Series.

• Continued AUM expansion, driven by Fund V fundraising and the launch of a new real estate investment fund.

• Operating expenses increased due to higher personnel costs, placement agent commissions for Fund V, and increased taxes.

Financial highlights

• Revenue for Q3 FY2024 reached ¥17,387mn, up from ¥7,552mn in Q3 FY2023.

• Net income for Q3 FY2024 was ¥9,344mn, a significant increase from ¥3,654mn in Q3 FY2023.

• Total assets as of September 30, 2024, were ¥65,971mn, up ¥9,674mn from December 31, 2023.

• Cash and cash equivalents at period-end were ¥18,869mn.

• Basic earnings per share for the nine months were ¥281.52, and diluted EPS was ¥263.44.

Outlook and guidance

• Targeting FE AUM growth rate of 10–20% through organic and inorganic strategies.

• Maintaining fee-related revenue margin of 30–40% via cost control.

• No formal earnings forecast is provided due to unpredictability of private equity returns and market conditions.

• Principal investment MOIC target set at approximately 3.0x.

• Reference recurring profit/loss forecasts for FY2024 include fund management fees of ¥3,494mn and management support fees of ¥242mn.