Area Quest, First Half Ordinary Profit Revised Downward to an Unexpected 75%Decrease

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Wed Feb 12, 2025 2:00 pm JST Earnings

8912 Area Quest Inc. 【J-GAAP】

Earnings Report

Area Quest Inc. <8912> [TSE Std] announced its financial results in the afternoon session on February 12th (14:00). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending June 2025 (July to December) significantly dropped 74.7% from the same period last year to 24 million yen, resulting in a decrease in profits compared to the previous forecast of a 26.3% increase.

The progress rate toward the full-year plan of 265 million yen was 9.1%, also falling below the five-year average of 46.3%.

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 January to June period (2H) is expected to expand 92.8% from the same period last year, reaching 241 million yen.

In the most recent three-month period, from October to December (2Q), the consolidated ordinary profit/loss turned to a loss of 1 million yen (compared to a profit of 60 million yen in the same period last year). However, the operating profit margin improved from 7.8% in the same period last year to 8.2%.

Kabutan News

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
Jul - Dec, 2022	1,136	94	108	54	2.8	46.2	Feb 10, 2023	J-GAAP
Jul - Dec, 2023	1,176	74	95	80	4.5	43.2	Feb 9, 2024	J-GAAP
Jul - Dec, 2024	1,192	89	24	4	0.3	9.1	Feb 12, 2025	J-GAAP
YoY	+1.4%	+20.3%	-74.7%	-95.0%	-93.8%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2024 Guidance	1,100	90	120	60	3.7	－	Aug 8, 2024	J-GAAP
Jul - Dec, 2024 Results	1,192	89	24	4	0.3	0	Feb 12, 2025	J-GAAP
Revision Rate	+8.4%	-1.1%	-80.0%	-93.3%	-92.5%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jan - Jun, 2024	1,153	39	125	54	3.1	3	Aug 8, 2024	J-GAAP
Jan - Jun, 2025 Guidance	1,208	111	241	156	9.7	3	Feb 12, 2025	J-GAAP
YoY	+4.8%	+184.6%	+92.8%	+188.9%	+210.9%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jun, 2023	2,319	232	234	114	6.0	2	Aug 10, 2023	J-GAAP
Jun, 2024	2,329	113	220	134	7.8	3	Aug 8, 2024	J-GAAP
Jun, 2025 Guidance	2,400	200	265	160	10.0	3	Aug 8, 2024	J-GAAP
YoY	+3.0%	+77.0%	+20.5%	+19.4%	+28.4%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	592	46	60	59	3.4	7.8	Feb 9, 2024	J-GAAP
Jan - Mar, 2024	578	26	58	27	1.5	4.5	May 13, 2024	J-GAAP
Apr - Jun, 2024	575	13	67	27	1.6	2.3	Aug 8, 2024	J-GAAP
Jul - Sep, 2024	595	40	25	15	0.9	6.7	Nov 11, 2024	J-GAAP
Oct - Dec, 2024	597	49	-1	-11	-0.8	8.2	Feb 12, 2025	J-GAAP
YoY	+0.8%	+6.5%	－	－	－