Nalnet Communications Inc., First Half Ordinary Profit Decreases by 53%

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Thu Nov 14, 2024 2:00 pm JST Earnings

5870 Nalnet Communications Inc. 【J-GAAP】

Earnings Report

Nalnet Communications Inc. <5870> [TSE-G] announced its financial results in the afternoon session on November 14th (14:00). The ordinary profit (non-consolidated) for the cumulative second quarter of the fiscal year ending March 2025 (April to September) significantly dropped by 52.8% from the same period last year to 154 million yen, fell short of the previous forecast of 190 million yen.

The progress rate against the 552 million yen full-year plan was 27.9%, also falling below the same period of the previous year of 63.8%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the ordinary profit for the October to March period (second half) is expected to surge by 2.2 times that of the same period last year, reaching 398 million yen.

In the most recent three-month period, from July to September (2Q), the ordinary profit dropped to 101 million yen, a 38.8% decrease compared to the same period last year. The operating profit margin drastically worsened from 9.2% in the same period last year to 5.2%.

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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
Apr - Sep, 2024	3,865	159	154	81	15.4	27.9	Nov 14, 2024	J-GAAP
YoY	－	－	－	－	－

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	3,949	195	190	97	18.2	0	May 15, 2024	J-GAAP
Apr - Sep, 2024 Results	3,865	159	154	81	15.4	0	Nov 14, 2024	J-GAAP
Revision Rate	-2.1%	-18.5%	-18.9%	-16.5%	-15.5%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	3,997	195	185	112	21.2	15	May 15, 2024	J-GAAP
Oct - Mar, 2024 Guidance	4,697	402	398	245	46.0	15	Nov 14, 2024	J-GAAP
YoY	+17.5%	+106.2%	+115.1%	+118.8%	+117.1%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2024	7,672	526	511	305	57.7	15	May 15, 2024	J-GAAP
Mar, 2025 Guidance	8,562	561	552	326	61.1	15	May 15, 2024	J-GAAP
YoY	+11.6%	+6.7%	+8.0%	+6.9%	+6.0%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	2,069	9	2	-9	-1.7	0.4	Feb 14, 2024	J-GAAP
Jan - Mar, 2024	1,928	186	183	121	22.9	9.6	May 15, 2024	J-GAAP
Apr - Jun, 2024	1,899	56	53	25	4.8	2.9	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	1,966	103	101	56	10.6	5.2	Nov 14, 2024	J-GAAP
YoY	－	－	－	－	－