ValueCommerce (2491) Q3 2025 earnings summary

Executive summary

• Net sales for Q1–Q3 FY2025 were ¥20.8 billion, down 6.5% year-over-year, mainly due to the termination of key EC Solutions services.

• Operating income declined 29.9% year-over-year to ¥2.19 billion, while net income attributable to owners rose 7.3% to ¥2.29 billion, aided by a ¥1,025 million gain on service transition operations.

• Full-year earnings forecast remains unchanged, with an operating loss expected in Q4 due to contract terminations.

• LY Corporation sold its 28% stake, making the company independent, with minimal financial impact expected.

• Segment performance was mixed: Marketing Solutions saw sales growth but lower income, EC Solutions declined sharply due to service terminations, and Travel Tech posted higher sales but a segment loss.

Financial highlights

• Gross income for the period was ¥6.29 billion, down from ¥7.40 billion year-over-year.

• Comprehensive income rose 9.0% year-over-year to ¥2.34 billion.

• Cash and cash equivalents at period end were ¥11.44 billion, a decrease of ¥331 million from the previous year-end.

• Net assets increased to ¥13.99 billion, up ¥1.13 billion from the previous fiscal year-end.

• EBITDA for Q1–Q3 was ¥2.50 billion, down 27.5% year-over-year.

Outlook and guidance

• Full-year net sales forecast: ¥22.9 billion (down 24.7% year-over-year).

• Full-year operating income forecast: ¥1.5 billion (down 63.9% year-over-year).

• Basic earnings per share for the full year is forecast at ¥96.90.

• Dividend forecast unchanged; annual payout ratio to be at least 50%.

• Challenging revenue environment expected next fiscal year; focus on cost cuts and high-margin businesses.