ZIGExN (3679) Q1 2025 earnings summary

Executive summary

• Q1 FY2025/3 revenue reached ¥6,173M, up 13% YoY, with EBITDA at ¥1,788M (+19%) and net income at ¥1,014M (+20%). Progress rates for key metrics are around 22–24% of full-year forecasts.

• EBITDA increased 18.8% YoY to ¥1,788M, and operating income grew 20.7% to ¥1,452M.

• Both revenue and profits are tracking within the expected range, with record highs for the first quarter. PMI is progressing, especially at Ties, and reorganization in travel and HR businesses is underway.

• M&A team has been strengthened and is actively sourcing deals. Reorganizations in HR and travel businesses are expected to generate synergies.

• Gross profit reached ¥5,120M, up 13.0% YoY.

Financial highlights

• Revenue: ¥6,173M (+13% YoY); EBITDA: ¥1,788M (+19% YoY); Operating income: ¥1,452M (+21% YoY); Net income: ¥1,014M (+20% YoY); EPS: ¥9.78 (+20% YoY).

• Profit margins improved YoY, driven by revenue mix changes, travel business growth, and cross-selling in energy.

• Number of corporate clients reached 22,404 (+2.8% YoY), and unit price per client hit ¥1.07M (+16.1% YoY), both record highs.

• Total assets increased to ¥35,506M, with total equity at ¥19,017M and an equity ratio of 53.6%.

• Cash and cash equivalents rose by ¥688M to ¥13,930M as of June 30, 2024.

Outlook and guidance

• Revenue and profits are expected to remain within forecast ranges, considering seasonality and the busiest season in 4Q.

• Strategic investments and M&A-related one-time expenses are anticipated in 2Q; various measures and investments are planned to exceed forecasts in the second half.

• FY2025/3 full-year revenue forecast: ¥27,500M; operating income: ¥6,300M; net income: ¥4,300M; EPS: ¥41.90.

• No changes to the previously announced earnings or dividend forecasts.