Muninova (547A) Q2 2025 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in receivable balances and top-line revenue, with operating revenue for the six months ended September 30, 2024, rising 15.4% to ¥91,273 million, driven by core lending, credit card, and guarantee businesses.

• Operating profit increased 37.0% year-over-year to ¥9,036 million, and profit attributable to owners of parent rose 8.8% to ¥7,188 million.

• Continued M&A activity contributed to profit and goodwill growth, with two new subsidiaries, FPC and BitCash, consolidated this period.

Financial highlights

• Total receivable outstanding rose 14.7% year-over-year to ¥1,253.8bn; operating revenue up 15.4% to ¥91.3bn; interest on loans receivable grew 12.6% to ¥51,819 million.

• Operating expenses increased 13.4% year-over-year, mainly due to a ¥3,795 million rise in provision for doubtful accounts.

• Adjusted operating profit (excluding one-time items) up 19.5% year-over-year to ¥16.7bn.

• Extraordinary loss recorded due to full impairment on core system development expenses and a ¥1,582 million impairment loss for software in progress.

• Total assets as of September 30, 2024, were ¥1,330,504 million, up 5.1% from March 31, 2024.

Outlook and guidance

• Full-year guidance projects total receivable outstanding of ¥1,322.4bn and operating revenue of ¥188.5bn, with operating profit forecasted at ¥23.8bn and net profit at ¥21.6bn for FY2025/3.

• M&A investment planned up to ¥60bn through March 2027.

• Risks remain due to external environment and business uncertainties; actual results may differ from forecasts.