Hotto Link Inc., The Current Fiscal Year Net Income Revised Downward by 51%

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Mon Nov 11, 2024 3:30 pm JST Earnings

3680 Hotto Link Inc. 【IFRS】

Earnings Report

Hotto Link Inc. <3680> [TSE-G] announced its financial results (based on IFRS) after the market closed on November 11th (15:30). The consolidated net income for the cumulative third quarter of the fiscal year ending December 2024 (January to September) significantly dropped by 98.0% from the same period last year to 5 million yen.

In addition, the full-year consolidated net income has downwardly by 50.5%, from the previous forecast of 93 million yen to 46 million yen (compared to 226 million yen in the previous period), leading to an increase in the profit decline rate from 58.8% to 79.6%.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated net income/loss for the July to December period (second half) has been revised downward from an expected loss of 125 million yen to a loss of 172 million yen (compared to a profit of 78 million yen in the same period of the previous year), indicating an expansion in the loss margin.

In the most recent three-month period, from July to September (3Q), the consolidated net income/loss turned to a loss of 213 million yen (compared to a profit of 97 million yen in the same period last year). The operating profit/loss margin drastically worsened from 7.4% in the same period last year to -8.3%.

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Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Jan - Sep, 2022	5,548	198	68	70	4.6	3.6	Nov 11, 2022	IFRS
Jan - Sep, 2023	3,408	176	310	245	15.7	108.0	Nov 14, 2023	IFRS
Jan - Sep, 2024	3,262	-42	79	5	0.3	56.0	Nov 11, 2024	IFRS
YoY	-4.3%	－	-74.5%	-98.0%	-97.8%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2024 Prev	2,212	133	-143	-125	-8.0	0	Aug 8, 2024	IFRS
Jul - Dec, 2024 New	2,212	-27	-182	-172	-11.0	0	Nov 11, 2024	IFRS
Revision Rate	0.0%	－	-27.3%	-37.6%	-37.5%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2024 Prev	4,503	172	180	93	5.9	0	Feb 14, 2024	IFRS
Dec, 2024 New	4,503	12	141	46	2.9	0	Nov 11, 2024	IFRS
Revision Rate	0.0%	-93.0%	-21.7%	-50.5%	-50.6%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2023	2,514	131	95	78	5.0	0	Feb 14, 2024	IFRS
Jul - Dec, 2024 Guidance	2,212	-27	-182	-172	-11.0	0	Nov 11, 2024	IFRS
YoY	-12.0%	－	－	－	－

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2022	7,906	2,110	1,875	1,818	116.8	0	Feb 10, 2023	IFRS
Dec, 2023	4,739	220	287	226	14.5	0	Feb 14, 2024	IFRS
Dec, 2024 Guidance	4,503	12	141	46	2.9	0	Nov 11, 2024	IFRS
YoY	-5.0%	-94.5%	-50.9%	-79.6%	-79.8%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	1,183	87	118	97	6.2	7.4	Nov 14, 2023	IFRS
Oct - Dec, 2023	1,331	44	-23	-19	-1.2	3.3	Feb 14, 2024	IFRS
Jan - Mar, 2024	1,171	25	137	87	5.6	2.1	May 10, 2024	IFRS
Apr - Jun, 2024	1,120	14	186	131	8.4	1.3	Aug 8, 2024	IFRS
Jul - Sep, 2024	971	-81	-244	-213	-14.5	-8.3	Nov 11, 2024	IFRS
YoY	-17.9%	－	－	－	－