Sparks Group <8739> announced its consolidated financial results for the second quarter of the fiscal year ending March 2025 (April-September 24th). Operating revenue increased by 9.9% year-on-year to 8.716 billion yen, operating profit increased by 3.6% to 3.66 billion yen, ordinary profit decreased by 1.7% to 3.676 billion yen due to a decrease in foreign exchange gains, and net profit attributable to the parent company's shareholders decreased by 31.5% to 2.284 billion yen as there was no special profit of 1.109 billion yen from the sale of investment securities recorded in the same period last year.
The Group's operating asset balance at the end of the current interim period increased by 0.6% from the previous period to 1,901.1 billion yen. The balance return during this interim period amounted to 8.012 billion yen, an increase of 15.3% compared to the same period last year. Success fees decreased by 33.6% to 0.604 billion yen compared to the same period last year, while operating revenue increased by 9.9% to 8.716 billion yen. The basic profit, an indicator demonstrating the sustainable and stable earnings power underlying the business, increased by 13.1% compared to the same period last year, reaching 3.573 billion yen (compared to 3.159 billion yen in the same period last year) and continuing to set a record high. Along with the earnings report, the company announced a share buyback of up to 0.3 billion yen to be carried out from November 1, 2024 to January 31, 2025, and the full cancellation of the shares acquired in this repurchase. Additionally, they announced a new business endeavor, a high-end villa development project in the Niseko area of Hokkaido.
Regarding the consolidated performance forecast for the fiscal year ending March 2025, the Group's main business of investment advisory services for investment trusts is in a situation where performance is greatly influenced by economic conditions and market environment, making it difficult to predict future performance. The Group's important management indicator, the operating asset balance, is typically disclosed separately within the first five business days of each month, showing the flash value at the end of the previous month.
