Net One Systems (7518) Q1 2025 earnings summary

Executive summary

• Bookings, revenue, and operating income reached record highs in Q1 FY24, with bookings up 22.6% and revenue up 7.1% year-over-year.

• Operating income more than doubled, up 129.9% year-over-year, supported by improved gross profit margin and reduced SG&A expenses.

• Profit attributable to owners of parent rose 153.2% year-over-year, with EPS up 162.6%.

• Growth was driven by strong performance in the Public and Partner segments, with notable wins in large DX and Wi-Fi service projects.

• Earnings per share grew to ¥32.40 from ¥12.34 in the prior year period.

Financial highlights

• Bookings: JPY 61.3bn (+22.6% YoY); Revenue: JPY 45.6bn (+7.1% YoY); Operating income: JPY 3.8bn (+129.9% YoY).

• Gross profit: JPY 12.2bn (+17.6% YoY); Gross profit margin: 26.7% (+2.3pts YoY).

• SG&A expenses decreased by 3.9% year-over-year to JPY 8.4bn.

• Ordinary income: JPY 3.7bn (+145.9% YoY); Profit attributable to owners: JPY 2.6bn (+153.2% YoY).

• Total assets stood at ¥164.1bn as of June 30, 2024.

Outlook and guidance

• FY24 full-year revenue forecast unchanged at JPY 220bn (+7.3% YoY), with bookings expected at JPY 225bn (+11.7% YoY).

• Operating income forecast for FY24 is JPY 21bn (+7.5% YoY); profit attributable to owners forecast at JPY 14.4bn (+5.0% YoY).

• Full-year EPS guidance set at ¥181.59; interim and year-end dividends forecasted at ¥43.00 each.

• Segment revenue growth expected across Enterprise, Telecom Carrier, Public, and Partner, with Public segment bookings up 25.4% YoY.