ARCS COMPANY,LIMITED, First Half Ordinary Profit Revised Downward to an Unexpected 10%Decrease

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Tue Oct 15, 2024 3:30 pm JST Earnings

9948 ARCS COMPANY,LIMITED 【J-GAAP】

Earnings Report

ARCS COMPANY,LIMITED <9948> [TSE-P] announced its financial results after the market closed on October 15th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending February 2025 (March to August) decreased by 9.5% from the same period last year to 7.97 billion yen, resulting in a decrease in profits compared to the previous forecast of a 2.2% increase.

The progress rate against the 18.8 billion yen full-year plan was 42.4%, also falling below the five-year average of 52.0%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit for the September to February period (second half) is expected to grow by 12.4% from the same period last year, reaching 10.8 billion yen.

In the most recent three-month period, from June to August (2Q), the consolidated ordinary profit decreased to 3.7 billion yen, a 14.8% decrease compared to the same period last year. The operating profit margin worsened from 2.6% in the same period last year to 2.1%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Mar - Aug, 2022	281,249	7,409	8,249	5,519	98.4	50.2	Oct 14, 2022	J-GAAP
Mar - Aug, 2023	292,201	7,935	8,810	5,799	104.3	47.8	Oct 16, 2023	J-GAAP
Mar - Aug, 2024	302,740	7,162	7,973	4,999	92.6	42.4	Oct 15, 2024	J-GAAP
YoY	+3.6%	-9.7%	-9.5%	-13.8%	-11.2%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar - Aug, 2024 Guidance	306,000	8,200	9,000	5,900	109.3	34	Apr 15, 2024	J-GAAP
Mar - Aug, 2024 Results	302,740	7,162	7,973	4,999	92.6	34	Oct 15, 2024	J-GAAP
Revision Rate	-1.1%	-12.7%	-11.4%	-15.3%	-15.3%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Sep - Feb, 2023	299,356	8,896	9,629	5,967	108.5	39	Apr 15, 2024	J-GAAP
Sep - Feb, 2024 Guidance	310,260	10,138	10,827	6,601	122.3	34	Oct 15, 2024	J-GAAP
YoY	+3.6%	+14.0%	+12.4%	+10.6%	+12.7%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Feb, 2023	566,209	14,835	16,444	9,947	177.5	58	Apr 14, 2023	J-GAAP
Feb, 2024	591,557	16,831	18,439	11,766	214.0	68	Apr 15, 2024	J-GAAP
Feb, 2025 Guidance	613,000	17,300	18,800	11,600	214.9	68	Apr 15, 2024	J-GAAP
YoY	+3.6%	+2.8%	+2.0%	-1.4%	+0.4%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jun - Aug, 2023	149,301	3,953	4,355	2,791	50.2	2.6	Oct 16, 2023	J-GAAP
Sep - Nov, 2023	144,209	3,159	3,531	2,108	38.1	2.2	Jan 9, 2024	J-GAAP
Dec - Feb, 2023	155,147	5,737	6,098	3,859	70.2	3.7	Apr 15, 2024	J-GAAP
Mar - May, 2024	148,824	3,870	4,264	2,664	49.4	2.6	Jul 4, 2024	J-GAAP
Jun - Aug, 2024	153,916	3,292	3,709	2,335	43.3	2.1	Oct 15, 2024	J-GAAP
YoY	+3.1%	-16.7%	-14.8%	-16.3%	-13.8%