Nalnet Communications, The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 27% Decrease

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Fri Feb 14, 2025 3:15 pm JST Earnings

5870 Nalnet Communications Inc. 【J-GAAP】

Earnings Report

Nalnet Communications Inc. <5870> [TSE Growth] announced its financial results in the afternoon session on February 14th (15:15). The ordinary profit (non-consolidated) for the cumulative third quarter of the fiscal year ending March 2025 (April to December) significantly dropped 56.1% from the same period last year to 144 million yen.

In addition, the full-year ordinary profit has decreased 32.6%, from the previous forecast of 552 million yen to 372 million yen (compared to 511 million yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 27.2% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the ordinary profit for the October to March period (2H) has decreased 45.2%, from the previous forecast of 398 million yen to 218 million yen (compared to 185 million yen in the same period of the previous year), leading to a reduction in the profit growth rate from 2.2 times to 17.8%.

In the most recent three-month period, from October to December (3Q), the ordinary profit/loss turned to a loss of 10 million yen (compared to a profit of 2 million yen in the same period last year). The operating profit/loss margin worsened from 0.4% in the same period last year to -0.3%.

Note: In cases where performance forecasts are disclosed within a range, the article is created based on the midpoint of the range.

Kabutan News

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
Apr - Dec, 2023	5,744	340	328	184	35.0	64.2	Feb 14, 2024	J-GAAP
Apr - Dec, 2024	6,176	152	144	65	12.2	38.7	Feb 14, 2025	J-GAAP
YoY	+7.5%	-55.3%	-56.1%	-64.7%	-65.1%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2024 Prev	4,697	402	398	245	46.0	15	Nov 14, 2024	J-GAAP
Oct - Mar, 2024 New	4,489	225	218	125	23.4	15	Feb 14, 2025	J-GAAP
Revision Rate	-4.4%	-44.0%	-45.2%	-49.0%	-49.0%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	8,562	561	552	326	61.1	15	May 15, 2024	J-GAAP
Mar, 2025 New	8,354	384	372	206	38.6	15	Feb 14, 2025	J-GAAP
Revision Rate	-2.4%	-31.6%	-32.6%	-36.8%	-36.8%

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	4,489	225	218	125	23.4	15	Feb 14, 2025	J-GAAP
YoY	+12.3%	+15.4%	+17.8%	+11.6%	+10.7%

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	8,354	384	372	206	38.6	15	Feb 14, 2025	J-GAAP
YoY	+8.9%	-27.0%	-27.2%	-32.5%	-33.0%

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
Oct - Dec, 2024	2,311	-7	-10	-16	-3.0	-0.3	Feb 14, 2025	J-GAAP
YoY	+11.7%	－	－	-77.8%	-76.0%