transcosmos (9715) Q2 2025 earnings summary

Executive summary

• Consolidated net sales rose 3.1% year-over-year to ¥185.55B, driven by growth in both CX and BPO services.

• Operating profit increased by ¥1.29B (+22.1% YoY) to ¥7.13B, mainly due to higher profitability overseas and improved gross profit margin at the parent company.

• Net profit declined by ¥0.24B YoY (down 5.4%) to ¥4.15B, impacted by higher non-operating expenses and extraordinary losses.

• Comprehensive income grew 22.9% year-over-year to ¥8.37B.

Financial highlights

• Gross profit grew 6.4% YoY to ¥35.35B, with gross margin improving to 19.0%.

• Operating profit margin increased from 3.2% to 3.8% YoY.

• Ordinary profit was stable at ¥7.20B, down 1.3% YoY.

• Free cash flow dropped sharply to ¥1.2B from ¥8.99B YoY, mainly due to lower operating cash flow.

• Net assets rose to ¥123.17B as of September 30, 2024, from ¥118.07B at March 31, 2024.

Outlook and guidance

• The company is focusing on expanding digital integration and BPO services, leveraging AI and digital talent development.

• Market trends indicate continued growth in web solutions, online advertising, and B2C e-commerce, supporting future demand.

• No forecasts for consolidated financial results or dividend for the fiscal year ending March 31, 2025, due to difficulty in making accurate projections.