Weathernews (4825) Q1 2023 earnings summary

Executive summary

• Q1 FY2023 net sales rose 4.8% YoY to ¥5,225M; operating profit fell 10.3% to ¥472M, while ordinary profit rose to ¥526M and net profit to ¥369M.

• Mobile/internet subscriptions and advertising, sea services, and sky services supported growth; higher personnel and advertising investment weighed on operating profit.

Financial highlights

• Gross profit increased to ¥2,319M from ¥2,198M; SG&A rose to ¥1,847M from ¥1,672M.

• Foreign exchange gains contributed to ¥526M ordinary profit; comprehensive income was ¥475M, including ¥100M of foreign currency translation gains.

• Operating cash flow was ¥318M, investing cash flow ¥52M, and financing cash flow used ¥491M; period-end cash and equivalents were ¥11,392M.

Outlook and guidance

• FY2023 forecast unchanged: net sales ¥21,000M, operating profit ¥3,200M, ordinary profit ¥3,300M, net profit ¥2,400M, and EPS ¥217.90.

• Growth plans include expanding mobile/internet content and advertising, rolling out the NAR coastal stranding-risk service, and developing environmental-operation support services.

• Advertising and overseas promotion investment and software-development streamlining will continue; airline demand remains uncertain, while the domestic helicopter market is expected to stay strong.