(5244) jig.jp - New Analyst Report 7/5

◆ Business description
・The Jig.jp Group consists of 3 companies: Jig.jp and consolidated subsidiaries A Inc., and B Inc. Live streaming businesses, browser businesses, etc. for general consumers are carried out based on the corporate philosophy of “providing software closest to users and realizing a richer society,” and the live streaming business accounts for the majority of sales.

◆ Overview of financial results for the fiscal year ending March 31, '24
・Net sales for the 24/3 fiscal year were 12,247 million yen (up 16.6% from the previous fiscal year), and operating profit was 1,804 million yen (up 82.3% from the same period). The number of unique paid users who purchased paid items and provided support during live streaming steadily increased, and sales continued to increase, and effective operation of advertising costs and reduction of settlement fees contributed, resulting in an operating profit increase rate that exceeded the rate of increase in sales.

◆ Earnings forecast for the fiscal year ending 25/3
・The company plan for the 25/3 fiscal year is sales of 13,500 million yen (up 10.2% from the previous fiscal year) and operating profit of 2,000 million yen (up 10.8% from the same period). Sales will continue to increase due to an increase in the number of unique paying users, and the increase in labor costs associated with the increase in staff will be absorbed through efficient management of other expenses, and an operating margin of almost the same level as the 24/3 fiscal year is expected.
・The Securities Research Center (hereafter, the Center) revised the previously forecast sales of 13,249 million yen and operating income of 1,910 million yen upward to 13,567 million yen (up 10.8% from the previous fiscal year) and operating profit of 2025 million yen (up 12.3% from the same period) based on the results for the 24/3 fiscal year.

◆ Future business strategy
・The basic strategy of jig.jp is to increase the number of unique billing users, and aims for sustainable growth by appropriately controlling sales per unique billing user.
・Our center believes that it is possible for Jig.jp to continue to achieve a continuous increase in the number of unique paying users, which is a basic strategy, by implementing advertisements with an emphasis on cost effectiveness in the future, and anticipates an increase in sales and profit even after the 26/3 period.