ValueCommerce (2491) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 FY2024 reached ¥7,304 million, up 2.9% year-over-year but down 4.6% sequentially from Q1.

• Net sales for the six months ended June 30, 2024, were ¥14,957 million, up 1.2% year-over-year, driven by growth in Affiliate Marketing and StoreMatch services.

• Operating income for the quarter was ¥882 million, a 28.2% decrease year-over-year and a 32.9% drop from the previous quarter, impacted by increased strategic costs and treasury share TOB expenses.

• The company became an affiliate accounted for by the equity method of LY Corporation after treasury share transactions.

• Net income attributable to owners was ¥1,512 million, down 18.3% year-over-year, mainly due to increased income taxes.

Financial highlights

• Cumulative net sales for Jan–Jun 2024 were ¥14,957 million, up 1.2% year-over-year.

• Operating income for the first half was ¥2,198 million, down 19.1% year-over-year.

• EBITDA for the first half was ¥2,408 million, down 18.5% year-over-year.

• Gross income was ¥5,043 million, nearly flat year-over-year.

• Basic EPS for the first half was ¥52.48.

Outlook and guidance

• Full-year net sales forecast is ¥28,300 million, with 52.9% progress achieved by Q2.

• Full-year operating income forecast is ¥4,000 million, with 55.0% progress.

• Full-year 2024 guidance maintained: net sales ¥28,300 million (+3.7% YoY), operating income ¥4,000 million (-23.5% YoY), net income attributable to owners ¥2,700 million (-20.6% YoY), and basic EPS ¥107.06.

• Dividend forecast revised to ¥54.00 per share, with a payout ratio of 50.4%.

• No change in earnings forecasts despite treasury share acquisition.