ValueCommerce (2491) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 FY2024 reached ¥22.2 billion, up 2.4% year-over-year, driven by growth in Affiliate Marketing and StoreMatch services.

• Operating income declined 19.3% year-over-year to ¥3.1 billion due to increased strategic investments and treasury share-related costs.

• Net income attributable to owners of the parent dropped 20.2% year-over-year to ¥2.1 billion, mainly due to increased income taxes.

• Progress toward full-year earnings forecasts remains steady, with 78.7% of net sales and 78.0% of operating income targets achieved.

Financial highlights

• Q3 net sales: ¥7.31 billion, up 5.0% year-over-year and 0.1% sequentially.

• Q3 operating income: ¥923 million, down 19.6% year-over-year but up 4.6% sequentially.

• EBITDA for Q3: ¥1.03 billion, down 18.4% year-over-year.

• Gross income for the period was ¥7,403 million, down from ¥7,488 million year-over-year.

• SG&A expenses increased 13.0% year-over-year in Q3, reflecting higher personnel and strategic costs.

Outlook and guidance

• Full-year 2024 guidance maintained: net sales ¥28.3 billion, operating income ¥4.0 billion, net income ¥2.7 billion, and basic EPS ¥107.06.

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

• No revisions to previously announced earnings forecasts.