Honyaku Center (2483) Q1 2027 earnings summary

Executive summary

• Revenue for Q1 FY2027 was ¥2,454 million, down 8.0% year-over-year due to a significant decline in the core translation business, despite record sales in the interpreting segment.

• Operating profit dropped 70.8% to ¥62 million, and net profit attributable to shareholders fell 74.1% to ¥36 million year-over-year.

• The business environment is rapidly changing due to the spread of machine translation and generative AI, making AI/data utilization a key competitive factor.

Financial highlights

• Revenue: ¥2,454 million (down 8.0% YoY).

• Operating profit: ¥62 million (down 70.8% YoY).

• Ordinary profit: ¥67 million (down 69.3% YoY).

• Net profit attributable to shareholders: ¥36 million (down 74.1% YoY).

• EPS: ¥11.00 (down from ¥42.65 YoY).

Outlook and guidance

• No change to previously announced full-year guidance: revenue forecast at ¥11,300 million (+3.9% YoY), operating profit ¥750 million (+6.2% YoY), net profit ¥500 million (+8.1% YoY), EPS ¥148.74.