ValueCommerce (2491) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2025 reached ¥15.96 billion, up 6.7% year-over-year, driven by Affiliate Marketing and EC Solutions growth.

• Operating income declined 9.4% year-over-year to ¥1.99 billion due to higher cost rates in Affiliate Marketing.

• Net income attributable to owners rose 24.6% year-over-year to ¥1.88 billion, aided by a ¥646 million gain on service transition operations.

• Comprehensive income grew 27.5% year-over-year to ¥1.94 billion.

• Extraordinary income was recorded from service transitions for "StoreMatch" and "STORE's Roo".

Financial highlights

• Gross income for the first half was ¥4.82 billion, down 4.5% year-over-year; quarterly gross income was ¥2.34 billion, down 0.7%.

• EBITDA for the first half was ¥2.24 billion, down 7.0% year-over-year.

• SG&A expenses decreased 0.7% year-over-year to ¥2.82 billion for the first half.

• Cash and cash equivalents at period end were ¥12.32 billion, up ¥549 million from the previous year-end.

• Equity-to-asset ratio improved to 70.2% from 65.6% at the previous year-end.

Outlook and guidance

• Full-year net sales forecast is ¥22.9 billion, up 24.7% year-over-year.

• Operating and ordinary income are both forecast at ¥1.5 billion, each up over 63% year-over-year.

• Net income attributable to owners is forecast at ¥2.1 billion, up 26.5% year-over-year.

• Dividend forecast is unchanged, with a projected annual payout ratio of at least 50% and per share forecast at ¥49.00.

• Revenue and profit are expected to decline in the second half due to the termination of "StoreMatch" and "STORE's Roo" agreements in July 2025.