ISB (9702) Q2 2023 earnings summary

Executive summary

• H1 revenue rose 12% YoY to ¥15,919 million; operating profit rose 19% to ¥1,315 million, with results above Q2 plans.

• Growth across all business fields was led by Enterprise; higher revenue and human-capital investment effects improved operating margin to 8.3%.

Financial highlights

• Revenue ¥15,919 million, up ¥1,746 million YoY and 103% of plan; operating profit ¥1,315 million, up ¥209 million and 110% of plan.

• Ordinary profit ¥1,340 million, up 18% YoY and 110% of plan; net income attributable to parent shareholders ¥762 million, up 10% and 109% of plan.

• EPS ¥66.94 versus ¥61.07 a year earlier, up ¥5.87 YoY and 109% of plan.

Outlook and guidance

• FY2023 guidance: revenue ¥31.0 billion, operating profit ¥2.6 billion, ordinary profit ¥2.64 billion and net income ¥1.59 billion.

• FY2023 plan targets an 8.4% operating margin; H1 progress was 51% of annual revenue and operating-profit targets.

• H2 outlook cites continued DX demand, expanded prime projects, increased financial and IT infrastructure orders, and further security-system sales growth.