U-NEXT HOLDINGS (9418) Q4 2024 earnings summary

Executive summary

• Net sales rose 18.2% YoY to ¥326.8 billion, with operating income up 35% to ¥29.1 billion and ordinary income up 39% to ¥28.3 billion; profit attributable to owners of parent increased 40% YoY to ¥15.4 billion.

• Consolidated sales and operating income reached all-time highs for the eighth consecutive year, with earnings at all levels up 35% to 40% YoY.

• The group reorganized its management structure and business segments to enhance operational agility and growth, announcing major organizational restructuring and acquisitions for post-period growth.

• Business Systems saw a record-setting 120% YoY increase in operating income, driven by demand for automatic payment kiosks due to Japan's new banknotes.

• Content Distribution operating income rose 36% YoY, adding about 500,000 subscribers, despite significant content investments.

Financial highlights

• Net sales grew 18% YoY to ¥326.8 billion; operating income up 35% to ¥29.1 billion; ordinary income up 39% to ¥28.3 billion.

• Net income attributable to owners of parent rose 40% YoY to ¥15.4 billion; adjusted net income up 31% to ¥18.5 billion.

• EBITDA increased 26% YoY to ¥39.5 billion; EBITDA margin improved to 12.1%.

• EPS reached ¥255.44 (adjusted: ¥307.77), both up significantly YoY.

• Net assets grew to ¥92.0 billion, with an equity ratio of 35.8%.

Outlook and guidance

• FY2025 forecast: Net sales to rise 10% to ¥360 billion; operating income to grow 6% to ¥31 billion; net income to increase 9% to ¥16.7 billion.

• EBITDA projected at ¥42.5 billion (+8.1% YoY); dividend per share forecast at ¥14.0 post-stock split, with a payout ratio of 15.1%.

• Adjusted EPS forecast at ¥110.05 (post-stock split basis).

• Content Distribution expects a net increase of 300,000 subscribers; Communication & Energy to benefit from price increases offsetting cost hikes.