TOKYO--(BUSINESS WIRE)--Investment Bridge, one of Japan's leading independent IR services companies, has released a "Bridge Report" on SEPTENI HOLDINGS CO., LTD. (JASDAQ:4293) reviewing the first half of September 2013 earnings results.
Report Highlights
- SEPTENI recorded brisk sales growth of 7.1% year-over-year during the second quarter due to strong demand for Internet marketing services, but operating income fell by 3.8% on the back of weak sales of social games. During the first half, sales rose by 9.5% while operating income fell by 11.0% year-over-year.
- SEPTENI estimates call for sales to rise by 10.9% year-over-year and operating income to decline by 6.6% year-over-year during the third quarter.
- The Bridge Report calls attention to the trends in social game sales as a key to SEPTENI's near term earnings.
SEPTENI HOLDINGS provides various services including the Internet advertising agency business, mail distribution system development, mobile contents creation and distribution including social games, and direct mail outsourcing services. The SEPTENI Group is comprised of about 20 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.
Sales rose by 7.1% year-over-year to a record high of JPY11.5 billion on the back of strong demand for Internet Marketing Business during the 2Q of FY9/13. However difficult conditions in the social games contributed to a decline in sales of Media Contents Business. Consequently, operating income fell 3.8% below the record high level recorded during the previous second quarter to JPY479 million due to difficulties in social games and anticipatory expenses for new business development and labor costs. However, the Bridge Report calls attention to the fact that operating income actually rose by 65.0% on a quarter-over-quarter basis due in large part to a recovery in social games to break even.
Conditions in the Internet Marketing Business are expected to continue to trend favorably with both sales and profits expected to grow. Consequently SEPTENI call for its sales to rise by 10.9% year-over-year during the third quarter to JPY11.5 billion. At the same time, social games within the Media Contents Business are expected to turn profitable and new titles expected to grow with the release of eight new large adaptations anticipated during the second half. However due to uncertainty over the timing and level of profitability of social games and anticipatory labor expenses resulting from the hiring of 85 new employees after April, SEPTENI calls for operating income to decline by 6.6% year-over-year to JPY290 million during the third quarter.
To view the full report, please go to the website at the URL listed
below.
http://www.bridge-salon.jp/report_bridge/archives/eng/4293/20130529.html
About Bridge Report:
Bridge Report is produced by Investment
Bridge Co., Ltd. and provides accurate and objective information
about the earnings, business strategies, and other information of
publicly traded Japanese companies.
