COVER (5253) Q1 2025 earnings summary

Executive summary

• Q1 FY2025/3 revenue reached ¥6,416 million, up 24.8% year-over-year, driven by strong merchandising, licensing/collaborations, and streaming/content growth.

• Operating profit declined 6.8% year-over-year to ¥834 million, impacted by increased fixed costs and business expansion.

• Net profit was ¥620 million, nearly flat year-over-year.

• Expansion in content production, hiring, and overseas VTuber engagement supported future growth.

• Ordinary profit rose 2.0% to ¥917 million.

Financial highlights

• Revenue: ¥6,416 million (+24.8% YoY); Gross profit: ¥3,325 million (+26.2% YoY); Marginal profit: ¥2,967 million (+29.6% YoY).

• Operating profit: ¥834 million (-6.8% YoY); Net profit: ¥620 million (-0.2% YoY).

• Gross margin reached 52%, the highest since FY2021/3.

• Total assets at June 30, 2024 were ¥21,591 million; net assets increased to ¥11,819 million.

• Basic EPS for Q1 FY2024 was ¥9.26.

Outlook and guidance

• Full-year FY2025 net sales forecast is ¥36,481 million (+20.9% YoY), operating profit forecast ¥7,300 million (+29.8% YoY), net profit forecast ¥5,064 million (+22.4% YoY).

• No change to previously disclosed full-year forecast.

• Preparations underway for expanded business development in 2H FY2025/3, including new music, overseas concerts, and trading card game launches.

• Long-term target operating margin set at 30%.

• No dividends declared or forecasted for FY2025.