Muninova (547A) Q3 2025 earnings summary

Executive summary

• Achieved double-digit growth in receivables and top-line revenue, with operating revenue for the nine months ended December 31, 2024, rising 15.6% year-over-year to ¥140.5bn, driven by core loan, credit card, and credit guarantee businesses.

• Operating profit increased 22.4% year-over-year to ¥18.8bn; ordinary profit up 22.1% to ¥19.7bn.

• Net profit attributable to owners grew 3.3% year-over-year to ¥14.9bn, despite higher provisions for doubtful accounts and extraordinary losses.

• Continued M&A activity contributed to profit growth, with five companies acquired, including FPC Co., Ltd. and BitCash Inc., and an M&A investment yield of 10.6%.

• Upgraded external credit rating to BBB+ and enhanced branding, recruitment, and IT personnel initiatives.

Financial highlights

• Operating revenue rose 15.6% year-over-year to ¥140.5bn for 3Q FY2025 YTD.

• Operating profit increased 22.4% year-over-year to ¥18.8bn; ordinary profit up 22.1% to ¥19.7bn.

• Net profit attributable to owners grew 3.3% year-over-year to ¥14.9bn.

• Adjusted operating profit (excluding one-time items) up 13.5% year-over-year to ¥30.2bn.

• Total assets as of December 31, 2024, were ¥1,391.1bn, up 9.8% from March 31, 2024; net assets increased 6.2% to ¥213.8bn.

Outlook and guidance

• Full-year operating revenue forecast at ¥188.5bn, operating profit at ¥23.8bn, and net profit at ¥21.6bn.

• Continued focus on M&A, with up to ¥60bn earmarked for future investments through March 2027.

• ROA and ROE targets set above 2% and 10% respectively, with equity ratio target of 15% or more.

• Management notes risks in the business environment and cautions that actual results may differ from forecasts.