Advanced Media, Inc. <3773> is rebounding sharply. After the close of trading on the 27th last week, the company revised its consolidated earnings forecast for the fiscal year ending March 2026 upward, raising its net profit projection from \1.4 billion to \1.62 billion (up 15.1% year-on-year). Concurrently, the company increased its year-end dividend forecast from \30 to \33.50 (compared to \27.50 in the previous fiscal year), which has been well received by the market.

The upward revision is attributed to the anticipated recognition of approximately \580 million in gain on sale of investment securities as extraordinary income, following the disposal of investment securities held by the company. The dividend forecast includes an increase in the ordinary dividend as well as a commemorative dividend of \2.50 to mark the 20th anniversary of the company's listing. However, the company revised its sales forecast downward from \8.0 billion to \7.0 billion (up 5.0% year-on-year) and its operating profit forecast from \1.8 billion to \1.34 billion (down 7.1% year-on-year). While subscription-based recurring revenue projects have grown steadily across various business divisions, large-scale flow-type projects in the CTI Division serving the contact center industry have declined, and M&A plans initially targeted at the beginning of the fiscal year have experienced delays.

Simultaneously, the company announced a share buyback program with an upper limit of 2.5 million shares (15.96% of issued shares excluding treasury stock) or \3.0 billion, which is also being viewed positively. The acquisition period runs from March 28 to March 27 of next year. Shares will be acquired through market purchases, including off-exchange trading on the Tokyo Stock Exchange (ToSTNeT-3).

Source: MINKABU PRESS