ASIRO (7378) Q4 2024 earnings summary

Executive summary

• Revenue rose 50% year-over-year to ¥4.8 billion, with operating profit up 517.1% to ¥329 million, both well above targets.

• All business segments posted year-over-year revenue growth, with strong performance in media and HR businesses.

• The company shifted from a growth investment phase to profit generation, curbing investments in Q4 to prepare for the next fiscal year.

• FY2025 targets have been raised, aiming for revenue of ¥6.33 billion and operating profit of ¥1.27 billion.

• Significant impairment losses totaling ¥203 million were recorded, mainly related to goodwill from the Biccoure and insurance businesses.

Financial highlights

• FY2024 Q4 revenue was ¥1.44 billion, up 67.8% year-over-year and 17.2% sequentially; operating profit was ¥199 million, up from a loss of ¥96 million in Q4 FY2023.

• Full-year FY2024 revenue reached ¥4.8 billion (+50% YoY), operating profit ¥329 million (+517.1% YoY), and net profit attributable to owners ¥142 million.

• EBITDA surged 121% YoY to ¥661 million; adjusted EBITDA up 156.7% to ¥571 million.

• All key financial targets for the year were exceeded, with revenue at 106.1%, operating profit at 134.7%, and net profit at 333.6% of revised forecasts.

• EPS improved to ¥19.62 from a loss of ¥1.69 in the prior year.

Outlook and guidance

• FY2025 revenue is forecast at ¥6.33 billion (+31.8% YoY), operating profit at ¥1.27 billion (+285% YoY), and net profit at ¥830 million (+483.6% YoY).

• Dividend payout ratio of 30% to be maintained, with per-share dividend projected to rise 40.2% to ¥33.90.

• Legal media expected to grow steadily at 20%, with higher growth in derivative media and HR businesses.

• The company targets ¥5.5 billion revenue and ¥1.1 billion operating profit as part of its mid-term plan, with FY2025 as the profit creation phase.