Open Up Group (2154) Q1 2025 earnings summary

Executive summary

• Revenue increased by 17.0% year-over-year to ¥48,366 million, driven by overseas segment growth, exchange rate effects, new subsidiaries, and an increase of 3,148 engineers compared to the same quarter last year.

• Operating profit rose by 28.0% year-over-year to ¥4,149 million, with business profit up 28.3% and profit attributable to owners of parent up 4.9% to ¥2,387 million.

• Growth in personnel and stable utilization rates in core segments contributed to higher profits.

• IR Corporation joined the group as of October 1 and will be consolidated from Q2, with one-time integration costs expected.

• Progress is on track, with internal systems being prepared for group integration of multiple acquired companies.

Financial highlights

• Q1 FY2025 revenue: ¥48.37 billion (+17.0% YoY); operating profit: ¥4.15 billion (+28.0% YoY); net income: ¥2.39 billion (+8.3% YoY).

• Gross profit increased from ¥9,730 million to ¥11,727 million year-over-year, with margin improving to 24.2% from 23.5%.

• Basic earnings per share rose to ¥27.49 from ¥26.30 year-over-year.

• Number of engineers reached 22,678 (+16.1% YoY).

• Total assets decreased to ¥114,525 million from ¥116,566 million at the previous fiscal year-end.

Outlook and guidance

• Full-year forecast remains unchanged at ¥193 billion revenue and ¥16 billion operating profit, up 11.4% and 11.9% YoY respectively.

• Profit attributable to owners of parent projected at ¥11,270 million, down 4.2% YoY.

• Initiatives for LTV improvement started in Q1, with results expected to take time.

• One-time integration costs for IR Corporation (~¥200 million) will be incurred in Q2; last year’s Q2 included a ¥480 million gain from a business divestment.

• No changes to previously announced business forecasts.