Macromill (3978) Q1 2025 earnings summary

Executive summary

• Q1 FY2025/6 revenue increased 4% year-over-year to 9.99bn JPY, driven by strong Japan Business performance and productivity improvements.

• Business profit rose 50% to 1.07bn JPY, and operating profit surged 139% to 0.78bn JPY; profit attributable to owners reached 0.15bn JPY, reversing a prior-year loss.

• EBITDA increased 29.1% year-over-year to 1.57bn JPY.

• Japan Business maintained an upward trend, while Korea Business faced revenue decline due to weaker public sector demand and a shrinking government research budget.

• Group performance is progressing as planned, aligned with initial guidance.

Financial highlights

• Consolidated revenue: 9.99bn JPY (+4% YoY); business profit: 1.07bn JPY (+50% YoY); operating profit: 0.78bn JPY (+139% YoY); EBITDA: 1.57bn JPY (+29.1% YoY).

• Profit before tax increased 199.5% YoY to 0.85bn JPY; basic EPS improved to 4.01 JPY from a loss of 2.98 JPY.

• Japan Business revenue: 8.97bn JPY (+6% YoY); business profit: 1.13bn JPY (+64% YoY).

• Korea Business revenue: 1.02bn JPY (-9% YoY); business profit: -0.07bn JPY.

• Cash and cash equivalents increased by 5.24bn JPY to 15.63bn JPY.

Outlook and guidance

• Q1 results are on track with initial guidance; revenue and profit progress rates are 21% and 17% of full-year targets, respectively.

• Full-year FY2025 revenue forecast is 48.0bn JPY (+9.4% YoY); operating profit projected at 5.7bn JPY (+27.5%); profit attributable to owners at 3.1bn JPY (+35.2%).

• Anticipate accelerated growth in the second half of FY2025/6, especially in Japan, with new subscription services and business projects planned.

• No change to previously announced forecasts as of this report.