COVER (5253) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, reached 17,104 million yen, up 39.3% year-over-year, driven by strong merchandising and licensing/collaborations growth.

• Revenue for Q2 FY2025 reached 10,688 million yen, up 49.8% year-over-year, with all profit metrics exceeding forecasts.

• Operating profit rose 80.2% YoY to 2,537 million yen in Q2 and 46.3% YoY to 3,372 million yen for the six months.

• Extraordinary loss of 450 million yen was recorded for indirect taxes in various foreign countries.

• Merchandising growth was fueled by the launch of the hololive OFFICIAL CARD GAME and expanded sales channels.

Financial highlights

• Gross profit for the six months was 9,083 million yen (gross margin 53.1%), and for Q2 was 5,757 million yen (gross margin 53.9%).

• Operating margin reached 19.7% for the period and 17.1% in Q2, both up year-over-year.

• Net income increased 28.0% YoY to 2,120 million yen for the six months; net margin was 12.4%.

• Merchandising revenue surged 79.8% YoY in Q2 and 64.3% YoY for the six months.

• Cash and equivalents at period end: 10,312 million yen.

Outlook and guidance

• Full-year forecast for FY2025 maintained: net sales 36,481 million yen (+20.9% YoY), operating profit 7,300 million yen (+31.8%), net profit 5,064 million yen (+22.4%).

• Full-year revenue progress rate stands at 46.9% of the forecast, with operating profit at 46.2% and net profit at 41.9%.

• Second quarter forecast was revised upward in October 2024.

• Plans for several large-scale concerts and continued rollout of the hololive trading card game are expected to support growth in the second half.

• Medium- to long-term strategy focuses on IP development, commerce expansion, and metaverse deployment.