PARK24 Co (4666) Q2 2024 earnings summary

Executive summary

• Net sales for the first half reached ¥175.8 billion, up 12.0% year-over-year, with operating profit at ¥16.6 billion and net profit at ¥9.0 billion, surpassing the full-year plan announced last December.

• Growth was driven by strong recovery and expansion in Parking Business Japan and Mobility Business, while international business saw net sales above plan but profit below target.

• All business segments exceeded their respective plans, with robust trends in both parking and mobility businesses.

• The company continues to focus on network expansion, digitalization, and operational efficiency to enhance service convenience and infrastructure.

Financial highlights

• H1 FY2024 net sales: ¥175.8 billion (112.0% YoY); operating profit: ¥16.6 billion; recurring profit: ¥14.9 billion (130.5% YoY); net profit: ¥9.0 billion (112.9% YoY).

• Parking Business Japan net sales: ¥85.6 billion; Mobility Business: ¥52.0 billion; Parking Business International: ¥38.4 billion.

• Shareholders' equity ratio improved to 25.6%, up from 22.8% at the previous fiscal year-end.

• Net D/E ratio improved to 1.19 at end of H1.

• Free cash flow was ¥13,828 million, slightly down year-over-year.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales of ¥357.0 billion (+8.1% YoY), operating profit of ¥35.0 billion (+9.4%), and profit attributable to owners of ¥20.0 billion (+14.0%).

• Net income per share for the full year is projected at ¥117.23.

• Midterm plan remains unchanged; potential for revision if current pace continues and accident rates stabilize.

• Monitoring accident rates in mobility business and overseas cost reductions before revising full-year forecast.