Septeni (4293) Q2 2024 earnings summary

Executive summary

• Revenue and net sales reached record highs in H1 FY2024, driven by the Digital Marketing Business, while profit attributable to owners of parent and EPS surged due to a gain on the partial transfer of COMICSMART INC.

• Profit declined due to increased personnel expenses from base pay hikes and new graduate hires.

• The company revised its shareholder return policy, distributing the entire projected FY2024 profit as dividends and raising the year-end dividend forecast.

• The Media Platform Business focused on new profit opportunities post-COVID.

Financial highlights

• H1 FY2024 revenue: ¥13,989mn (+3.1% YoY); net sales: ¥73,610mn (+10.5% YoY).

• Non-GAAP operating profit: ¥1,767mn (-2.8% YoY); operating profit: ¥1,742mn (+0.3% YoY); profit attributable to owners of parent: ¥4,005mn (+176.5% YoY); EPS: ¥19.32 (+¥12.38 YoY).

• Equity in earnings of affiliates rose 93.4% YoY, mainly due to DENTSU DIGITAL INC.'s strong performance.

• Total assets increased to ¥96,798mn, and equity attributable to owners of parent rose to ¥68,557mn.

Outlook and guidance

• FY2024 full-year revenue estimate: ¥31,000mn (+12.0% YoY); non-GAAP operating profit: ¥4,700mn (+17.0% YoY); profit attributable to owners of parent: ¥6,500mn (+74.0% YoY); EPS: ¥31.35.

• Dividend payout ratio set at 100% for FY2024, with a dividend per share of ¥31.35 (previous forecast: ¥7.90).

• From FY2025, dividend payout ratio to increase to 50% or more.

• No changes to previously announced guidance.