Open Up Group (2154) Q4 2024 earnings summary

Executive summary

• Revenue rose 14.9% year-over-year to ¥173.23 billion, driven by higher engineer utilization, core segment growth, and contributions from newly acquired subsidiaries.

• Operating profit increased 17.5% year-over-year to ¥14.29 billion, with net income up 23.4% to ¥11.77 billion.

• Major acquisitions (OPT, OPC) consolidated in Q4, with integration costs impacting profit contribution for the year.

• Discontinued operations (BeNEXT Partners) were excluded from continuing results, with a gain on sale recognized.

Financial highlights

• Gross profit increased 14.1% year-over-year to ¥42.55 billion, with a margin of 24.7%.

• Basic earnings per share rose to ¥135.76 from ¥109.13 year-over-year.

• Total assets grew to ¥116,566 million, and equity attributable to owners of parent reached ¥73,198 million.

• Cash and cash equivalents at period end were ¥21,506 million, up from ¥16,077 million.

• SGA costs rose to ¥27.70 billion, reflecting higher personnel and recruitment expenses.

Outlook and guidance

• FY25 revenue forecast at ¥193.0 billion (+11.4%), operating profit at ¥16.0 billion (+11.9%).

• Net income forecast at ¥11.27 billion, down 4.2% due to absence of profit from discontinued operations.

• Number of engineers expected to rise to 25,900 (+14.1%).

• Dividend per share forecast for FY2025 is ¥75.00, up from ¥65.00.