TOKYO--(BUSINESS WIRE)--Investment Bridge, one of Japan's leading IR services companies, has released a "Bridge Report" on SEPTENI HOLDINGS CO., LTD. (JASDAQ:4293) reviewing fiscal year September 2010 earnings results and its forecasts for fiscal year September 2011.
Report Highlights
- While sales declined by 1.2% year-over-year, operating income grew by 83.4% year-over-year on the back of improvements in gross income margin and strict SG&A cost controls.
- During the coming fiscal year September 2011, SEPTENI calls for net sales and ordinary income to grow by 7.2% and 12.3% year-over-year respectively.
- During the coming term SEPTENI expects to increase anticipatory investments for the development of new businesses to capture new business opportunities in the rapidly growing and changing realms of Internet and marketing.
SEPTENI HOLDINGS provides various services including the Internet advertising agency service business, mail distribution system development, mobile contents creation and distribution, and direct mail outsourcing services. The SEPTENI Group is comprised of 13 consolidated subsidiaries, which include the Internet advertising agency SEPTENI CO., LTD., the mobile contents distribution company AXEL MARK INC. (3624) and others, and three equity accounting method held affiliates.
| FY9/09 | FY9/10 Est. | FY9/10 Act. | Divergence | YY Change | FY9/11 Est. | YY Change | |||||||||
| Net Sales | 33,046 | 34,000 | 32,648 | -4.0% | -1.2% | 35,000 | 7.2% | ||||||||
| Operating Income | 598 | 800 | 1,098 | 37.3% | 83.4% | 1,200 | 9.3% | ||||||||
| Ordinary Income | 421 | 700 | 1,024 | 46.3% | 142.8% | 1,150 | 12.3% | ||||||||
| Net Income | -585 | 400 | 545 | 36.3% | na | 700 | 28.3% | ||||||||
| Operating Margin | 1.8% | 2.4% | 3.4% | -- | -- | 3.4% | -- | ||||||||
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(Units: Million Yen) |
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Despite increases in sales of SEPTENI's main Internet advertising segment, net sales declined by 1.2% year-over-year to JPY32.64 billion during the fiscal year September 2010 due to weaker sales of the Internet related and commerce segments. While Internet advertising segment sales grew by 1.9% year-over-year, Internet related business and direct marketing, and other business segments fell by 20.1%, 2.7% and 26.9% year-over-year. At the same time operating and ordinary income rose by 83.4% and 142.8% year-over-year to JPY1.09 and JPY1.02 billion respectively, and operating margin improved from 1.8% in the previous fiscal year to 3.4%. This strong growth in profits is attributed to improvements in gross margins and strict controls in advertising expense and other costs.
SEPTENI anticipates its Internet advertising business to grow on the back of its development of new applications in the realms of mobile, web solutions, and social media. In addition, the fortification of technology business applications for web marketing and new multiplatform distribution system applications for smart phones and tablet PCs are expected to boost contents business sales. Consequently the Company calls for sales to grow by 7.2% year-over-year to JPY35 billion in fiscal year September 2011. At the same time SEPTENI expects the higher sales to absorb increased anticipatory investments (between JPY0.1 and JPY0.2 billion) for new business development and operating income to rise by 9.3% year-over-year to JPY1.2 billion, for an operating margin of 3.4%.
At the end of the current term total assets and net assets increased by JPY0.46 and JPY0.30 billion from the end of the previous term to JPY12.37 and JPY6.0 billion respectively. Also improvements in profits and reductions in tax liabilities caused operating cash flow to increase, while declines in the acquisition of goodwill caused the net outflow in investing cash flow to contract. Consequently free cash flow increased from JPY0.10 billion in the previous term to JPY1.13 billion in the current term.
To view the full report, please go to the website at the URL listed
below.
http://www.bridge-salon.jp/report_bridge/archives/eng/4293/20110112.html
About Bridge Report:
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