Broadrive <3673> announced its consolidated financial results (IFRS) for the third quarter of the fiscal year ending December 2024 (January-September 24). Sales revenue increased by 15.2% year-on-year to 12.958 billion yen, operating profit was 0.288 billion yen (compared to a loss of 1.522 billion yen in the same period last year), pre-tax profit was 0.293 billion yen (a loss of 1.485 billion yen in the same period last year), and quarterly profit attributable to the parent company's owners was 0.161 billion yen (compared to a loss of 1.028 billion yen in the same period last year).
During the cumulative period of the third quarter, the transition from a 6-year lease contract for the package system to monthly subscription contracts such as the cloud software '.c Series' progressed. Additionally, the increase in revenue was contributed by acquiring new customers, resulting in cloud service sales reaching 5.492 billion yen, a 51.6% increase from the same period last year. While sales of package software for non-mobility industries remained flat compared to the same period last year, customers in the mobility industry continued to transition from package software to cloud software '.c Series', leading to a 2.1% decrease in package system sales to 7.466 billion yen. The transition of customers using package software to cloud software '.c Series' contributes to the decline in package system sales but is also an increasing factor in cloud service sales and overall revenue. This transition is expected to continue until all customers are fully transitioned by 2028. On the cost side, while continuing development towards enhancing the functionality and performance of cloud software, cost reduction in sales expenses and general administrative expenses was achieved through streamlining business processes, resulting in a decrease of 0.103 billion yen from the same period last year.
Regarding the full year ending December 2024, it was announced on the same day an upward revision of the consolidated performance forecast. Sales revenue is expected to increase by 15.7% compared to the previous year (1.1% higher than the previous forecast) to 17.8 billion yen, operating profit is forecasted at 0.45 billion yen (an increase of 800.0%), pre-tax profit is projected to be 0.35 billion yen (an increase of 250.0%), and the current profit attributable to the parent company's owners is estimated to be 0.125 billion yen (an increase of 38.9%).
