U-NEXT HOLDINGS (9418) Q1 2025 earnings summary

Executive summary

• Net sales for 1Q FY2025 rose 24.7% YoY to ¥91,928 million, with operating income up 10.3% to ¥8,251 million and ordinary income up 13.1% to ¥8,277 million.

• Net income attributable to owners increased 8.8% YoY to ¥4,567 million, achieving record highs for quarterly sales and net income.

• New business segments introduced in FY2025, now reported as Content Distribution, Store & Facility Solutions, Communication & Energy, and Financial, Realty & Global Business.

• Content Distribution and Store & Facility Solutions segments set all-time high quarterly earnings.

• Communication & Energy segment earnings declined YoY due to capacity payments in the Energy business.

Financial highlights

• EBITDA for the quarter was ¥10,819 million, up 10% YoY, with an EBITDA margin of 11.8%.

• All sales and earnings metrics exceeded 25% of FY2025 full-year forecasts.

• SG&A expenses increased YoY but continued to decline as a percentage of sales, now below 30%.

• Basic EPS was ¥25.32, adjusted EPS ¥29.68, both reflecting a 3-for-1 stock split.

• Comprehensive income reached ¥4,892 million, up 11.1% YoY.

Outlook and guidance

• 1Q results represent a strong start, with over 25% progress toward FY2025 full-year targets for all major metrics.

• Full-year forecast for FY2025: net sales ¥360,000 million (+10.2% YoY), operating profit ¥31,000 million (+6.5%), ordinary profit ¥30,000 million (+5.9%), profit attributable to owners ¥16,700 million (+8.7%).

• Full-year EBITDA forecast is ¥42,500 million (+8.1%), with adjusted EPS of ¥110.05 (+7.8%).

• High progress rate for EBITDA-CAPEX due to delayed investments.