(7378) ASIRO - New Analyst Report 7/12

◆ Business description
・Asiro (hereafter, the company) is engaged in the media business that provides legal information and lawyer information on the internet, the HR business, which is a recruitment service for qualified lawyers, etc., and the insurance business that sells attorney fee insurance “Bennabi Lawyer Insurance,” and the media business accounts for over 90% of sales.
・The company's two subsidiaries are Asiro Small Amount Short-Term Insurance, which conducts insurance business, and Hittus, which began temporary staffing business in 23/11.

◆ Overview of financial results for the first half of the fiscal year ending 2014/10
・Sales revenue for the cumulative period of the second quarter of the 24/10 fiscal year (hereinafter referred to as the first half) was 2,126 million yen, up 43.1% from the same period last year, and operating loss of 41 million yen (operating profit of 120 million yen for the same period last year). While sales continued to increase due to an increase in the number of publication slots, strategic expenses such as advertising expenses were carried out in line with the plan, and impairment losses related to goodwill of 203 million yen (media business 136 million yen, insurance business 66 million yen) were recorded due to the acquisition of subsidiaries, resulting in operating losses.

◆ Earnings forecast for the fiscal year ending 24/10
・The company plan for the 24/10 period, which has not changed since the beginning of the fiscal year, is 4,236 million yen, up 32.5% from the previous fiscal year, and operating profit of 105 million yen, up 97.8% from the same period. Since operating losses of 41 million yen were recorded in the first half, it is necessary to achieve operating profit of 146 million yen in the second half, but the company sees that this is possible by controlling expenses centered on advertising expenses.
・The Securities Research Center (hereafter, the Center) left the previous forecast (sales revenue of 4,250 million yen, operating income of 110 million yen) unchanged for the 24/10 earnings forecast based on first-half results and company policies.

◆ Future business strategy
・The company's future growth strategy is to secure new revenue sources by expanding the number of legal media posting slots and expanding business areas.
・The Securities Research Center predicts a significant increase in operating profit due to a round of strategic expenditure in the 25/10 fiscal year, and also anticipates an expansion in business results due to an increase in the number of listing slots thereafter.