Sharingtechnology (3989) Q1 2025 earnings summary

Executive summary

• Sales revenue for FY2025 1Q reached 1,942 million yen, up 12% year-over-year, driven by main genres and Az support expansion.

• Operating profit rose 30% year-over-year to 487 million yen, with net income up 27% to 324 million yen.

• Az support contributed 193 million yen to consolidated sales (up 248% YoY) and 40 million yen to operating profit.

• Comprehensive income attributable to owners reached 324 million yen, up from 255 million yen a year earlier.

• Progress toward full-year targets is on track, with sales revenue at 22.6% and operating profit at 24.4% of annual forecast.

Financial highlights

• Gross profit for 1Q was 1,789 million yen, up 210 million yen year-over-year.

• SGA expenses increased by 94 million yen to 1,311 million yen.

• Cost of sales ratio remained stable at 8%.

• Advertisement cost ratio to gross profit maintained at 45%.

• Basic earnings per share increased to 13.96 yen from 11.35 yen year-over-year.

Outlook and guidance

• FY2025 forecast: sales revenue projected at 8,600 million yen (up 15% YoY), operating profit at 2,000 million yen (up 12% YoY), and net income at 1,400 million yen (down 5% YoY due to tax effect accounting).

• Dividend per share to increase to 30 yen, with a payout ratio of 49%.

• Continued business investment and potential for further M&A activity.

• Earnings per share for the year expected at 60.23 yen.