Acom (8572) Q2 2025 earnings summary

Executive summary

• Operating revenue for the six months ended September 30, 2024, rose 8.3% year-over-year to ¥156.2 billion, driven by business expansion, higher interest on loans, and yen depreciation against the baht.

• Operating profit increased 13% year-over-year to ¥48.0 billion, and profit attributable to owners of parent grew 9.4% to ¥29.8 billion.

• Receivables outstanding increased 3.7% year-to-date to ¥2,624.8 billion, with all core segments contributing to growth.

• The business environment in Japan showed gradual recovery, but risks remain from overseas economic fluctuations and regulatory tightening in Thailand.

• Incident involving unauthorized transfer of customer data was contained with no external leakage or misuse, and measures are being taken to restore trust.

Financial highlights

• Consolidated receivables grew 3.7% from the end of last fiscal year to JPY 2.62 trillion as of September, driven by strong loan demand and currency effects.

• Operating revenue for the first half reached JPY 156.2 billion, exceeding the target by 1.6%.

• Operating profit was JPY 48 billion, 13% above target, and profit attributable to owners was JPY 29.8 billion, 15.7% above target.

• Provision for bad debts (consolidated) increased 14.5% year-on-year to ¥53.2 billion.

• Financial expenses rose 23.3% year-on-year to ¥2.7 billion, mainly due to higher funding costs.

Outlook and guidance

• Full-year forecasts: Operating revenue projected at ¥313.5 billion (+6.4% yoy), operating profit at ¥87.1 billion (+0.9% yoy), and profit attributable to owners of parent at ¥55.6 billion (+4.7% yoy).

• Receivables outstanding expected to reach ¥2,697.9 billion (+6.5% yoy) by fiscal year-end.

• Dividend forecast maintained at ¥7 per share for both interim and year-end, with a payout ratio estimated at 39.4%.

• New account acquisition is on track to meet the 375,000 target, with efficient customer acquisition costs.

• Bad debt expenses are expected to remain elevated due to a higher proportion of new borrowers, but are within expectations.