Weathernews (4825) Q3 2023 earnings summary

Executive summary

• 9M FY2023 net sales rose 7.4% YoY to ¥15,804M; operating profit increased 18.5% to ¥2,510M, and net income rose 22.1% to ¥1,803M.

• Mobile/internet subscription and advertising growth, alongside recovering airline demand, supported results; investment continued in advertising, software development and new businesses.

Financial highlights

• 9M gross profit was ¥6,980M versus ¥6,279M; SG&A increased to ¥4,470M from ¥4,160M.

• 9M ordinary profit rose 21.7% to ¥2,577M; comprehensive income was ¥1,865M versus ¥1,541M.

• Q3 net sales were ¥5,318M versus ¥4,837M; operating profit was ¥1,239M versus ¥969M, and net income was ¥882M versus ¥746M.

• 9M basic EPS was ¥163.77 versus ¥134.46; diluted EPS was ¥163.34 versus ¥134.10.

Outlook and guidance

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

• Growth expected from mobile/internet subscriptions and advertising, Sea Planning NAR and environmental services, airline recovery and continued helicopter-market growth.

• Advertising and overseas-business promotion investments will continue, with software-development efficiency a focus; forecasts depend on FX and global conditions.