Muninova (547A) Q1 2025 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in both receivables and operating revenue, with ordinary profit and profit attributable to owners of parent also increasing significantly.

• Operating profit increased 21.3% year-over-year to ¥3,771 million, and profit attributable to owners of parent rose 25.4% to ¥3,722 million.

• Executed strategic M&A, including the acquisition of BitCash, Salop, and consolidation of FPC Co., Ltd., to drive future profit growth and diversify business segments.

• Initiated a share buyback program, repurchasing approximately 5.15 million shares for nearly 2 billion yen.

Financial highlights

• Total receivables reached 1,213.9bn yen as of June 2024, up 15.7% year-over-year; operating revenue for the quarter was 44.6bn yen, up 15.4%.

• Interest on loans receivable grew 13.8% year-over-year to ¥25,699 million; credit card revenue up 2.5% to ¥5,416 million; credit guarantee revenue up 8.7% to ¥5,095 million.

• Ordinary profit for the quarter was 3.9bn yen, up 14.5% year-over-year; profit attributable to owners of parent rose 25.4% to 3.7bn yen.

• Credit cost increased 19% year-over-year to 15.7bn yen, mainly due to a higher proportion of new customer receivables; operating expenses rose 14.9% due to a ¥2,513 million rise in provision for doubtful accounts.

• Total assets at June 30, 2024, were ¥1,329,930 million, up 5.0% from March 31, 2024; net assets rose 0.8% to ¥202,997 million.

Outlook and guidance

• FY2025/3 full-year guidance: operating revenue of 180.2bn yen (+10.5% YoY), ordinary profit of 24.0bn yen (+8.8% YoY), and profit attributable to owners of parent of 21.6bn yen.

• Full-year FY2025 guidance maintained: operating revenue ¥180,200 million (+10.5% YoY), operating profit ¥23,800 million (+13.0%), profit attributable to owners of parent ¥21,600 million (–1.0%), EPS ¥44.64.

• Medium-term plan targets total receivables over 2 trillion yen and ordinary profit of 42bn yen by FY2027/3.

• Aiming for real ROE of 15% and maintaining an equity ratio of at least 15%.

• Six-month forecast: operating revenue ¥87,900 million (+11.1% YoY), operating profit ¥8,900 million (+35.0%).