(9345) Bizmeets - New Analyst Report 8/30

Providing online business English conversation services such as "Bizmates".
- Bizmates operates the language solution business that provides online business English conversation services such as "Bizmates", and the talent solution business that provides talent introduction services for foreign IT engineers, etc.
- The revenue composition ratio for the 23/12 fiscal year was 95.7% for the language solution business and 4.3% for the talent solution business. The talent solution business, which started in 2018, is still incurring investment costs and continues to incur segment losses.

The interim financial results for the 24/12 fiscal year showed an 11% increase in revenue and a 35% increase in operating profit.
- The cumulative second quarter (interim) financial results for the 24/12 fiscal year showed an 11.4% increase in revenue and a 34.5% increase in operating profit compared to the same period of the previous year. The language solution business saw a 7.0% increase in revenue and a 4.6% decrease in profit, while the talent solution business saw a 135.4% increase in revenue and the segment loss decreased from 920 million yen in the same period of the previous year to 270 million yen.

The company's plan for the 24/12 fiscal year remains "10% increase in revenue, 23% decrease in operating profit."
- Based on the impact of the timing of expenses and the planned expenses related to the relocation of the head office, Bizmates maintains its plan for the 24/12 fiscal year, expecting a 9.7% increase in revenue and a 22.6% decrease in operating profit.
- The Securities Research Center (hereinafter referred to as "the Center") has revised its financial estimates for the 24/12 fiscal year based on the interim results and the company's initiatives, revising the revenue from 3,450 million yen to 3,505 million yen (an 11.8% increase compared to the previous year) and the operating profit from 270 million yen to 335 million yen (a 3.9% decrease).

With the assumption of increased revenue effects from both businesses, we expect an increase in profit after the 12th term of 2025.
- Based on the results of the first half of the 12th term of 2024 and the company's measures, we have also upwardly revised the performance forecast for the 12th term of 2025 and beyond.
- With the assumption of increased revenue effects from both businesses and the deduction of relocation expenses at the head office, we expect a 8.4% increase in revenue and a 40.6% increase in operating profit for the 12th term of 2025, and a 7.4% increase in revenue and a 13.4% increase in operating profit for the 12th term of 2026.