Septeni (4293) Q2 2025 earnings summary

Executive summary

• Revenue increased 8.7% year-over-year to ¥15,207 million for H1 FY2025, with Non-GAAP operating profit up 16.8% and progress toward the full-year forecast exceeding 50%, driven by strong Q1 and Direct Business Segment contributions in Q2.

• Profit from continuing operations rose year-over-year, excluding a prior one-time gain from a subsidiary share sale, while profit attributable to owners fell 53.7% YoY due to this gain.

• All segments reported higher Non-GAAP operating profit, with strong Direct Business growth and stable Marketing Communication performance.

• Outlook for H2 remains solid, supported by new and expanded client relationships and collaboration with Dentsu.

Financial highlights

• H1 FY2025 revenue: ¥15,207mn (+8.7% YoY); Non-GAAP operating profit: ¥2,065mn (+16.8% YoY); profit attributable to owners: ¥1,856mn (-53.7% YoY, due to prior year one-time gain).

• Operating profit reached ¥2,024mn (up 16.2% YoY); H1 EPS: ¥8.95 (down from ¥19.33 YoY, reflecting prior year one-time gain).

• Total assets at end-Q2 FY2025: ¥89,985mn (down from ¥97,637mn at FY2024 year-end); total capital: ¥65,006mn.

• Q2 FY2025 revenue: ¥7,001mn (+4.5% YoY); Non-GAAP operating profit: ¥494mn (flat YoY); profit attributable to owners: ¥332mn (-35.8% YoY).

• Revenue to net sales ratio improved to 20.2% (+1.2pt YoY).

Outlook and guidance

• FY2025 full-year revenue forecast: ¥30,300mn (+7.1% YoY); Non-GAAP operating profit: ¥4,000mn (+25.1% YoY); profit attributable to owners: ¥3,800mn (-31.2% YoY, due to prior year one-time gain); basic EPS: ¥18.32.

• Each segment is progressing smoothly toward its plan, with H1 progress rates around 50%.

• No changes to previously announced guidance.

• Focus on top-line growth, productivity, and profitability to achieve guidance.