PRONEXUS (7893) Q2 2024 earnings summary

Executive summary

• H1 FY2024 revenue rose 10.6% YoY to ¥17,716 million; operating profit increased 12.3% to ¥3,029 million and profit attributable to owners of parent rose 11.3% to ¥2,074 million.

• H1 results exceeded the full-year forecast’s first-half assumptions; full-year guidance remained unchanged amid uncertainty around implementing electronic provision of shareholder-meeting notices.

• Consolidation of Cine Holdings and Cine Focus supported event-business growth and contributed significantly to performance.

Financial highlights

• Revenue increased ¥1,698 million YoY to ¥17,716 million; gross profit was ¥7,200 million, up 11.4% YoY.

• Operating profit rose ¥331 million to ¥3,029 million; profit before tax reached ¥3,059 million and profit attributable to owners of parent was ¥2,074 million.

• Cash and cash equivalents increased ¥3,431 million from FY2023 year-end to ¥11,005 million; total assets were ¥39,936 million at Sep. 30, 2023.

Outlook and guidance

• FY2024 guidance unchanged: revenue ¥30,000 million, operating profit ¥2,400 million, profit before tax ¥2,400 million and parent-attributable profit ¥1,650 million.

• Full-year operating margin forecast is 8.0%, versus 8.3% in FY2023; H1 actual operating margin was 17.1%.

• Annual dividend forecast is ¥36 per share, comprising ¥18 at Q2-end and ¥18 at year-end.