Weathernews (4825) Q4 2023 earnings summary

Executive summary

• FY23 net sales rose 7.4% YoY to ¥21,114M; operating profit increased 12.1% to ¥3,256M and net income attributable to owners of parent rose 11.2% to ¥2,398M.

• Growth was supported by mobile/internet services, recovering aviation demand and stronger environment-planning services; lower development outsourcing costs also benefited operating profit.

Financial highlights

• FY23 net sales were 0.5% above forecast and operating profit 1.8% above forecast; ordinary profit was ¥3,284M, up 7.2% YoY.

• Q4 net sales grew 7.6% YoY to ¥5,310M, while operating profit fell 5.0% to ¥745M and ordinary profit fell 25.3% to ¥707M.

• Cash from operating activities was ¥2,385M versus ¥3,574M; cash and cash equivalents ended at ¥12,519M versus ¥11,423M.

• Total assets rose to ¥20,980M and net assets to ¥18,400M; liabilities increased to ¥2,579M at May 31, 2023.

Outlook and guidance

• FY24 forecast: net sales ¥22,500M (+6.6%), operating profit ¥3,500M (+7.5%), ordinary profit ¥3,500M (+6.6%), net income ¥2,500M (+4.3%) and EPS ¥226.52.

• Growth plans include mobile/internet content and advertising, existing BtoB service growth and a shift toward SaaS; investment priorities include overseas talent, data and cloud computing.

• FY24 ROE is forecast at 13.2%, down 0.5pt YoY; forecast USD/JPY is 130.0 versus 135.5 actual in FY23.