August 7, 2018
Company Name: Hakuhodo DY Holdings Inc. Representative: Mr. Hirokazu Toda, President & CEO
(Code number: 2433; TSE First Section)
Inquiries: Mr. Satoru Yagi
Executive Manager, Investor Relations Division
(Tel: +81-3-6441-9033)
Consolidated Financial Highlights for 1Q of FY2018
Hakuhodo DY Holdings Inc. has summarized key data from its first-quarter earnings report for fiscal 2018, the year ending March 31, 2019, released today, in the following reference materials.
1. Summary of Consolidated Income Statements (April 1 to June 30, 2018)
(Millions of yen)
1Q of FY2017 (Result) | 1Q of FY2018 (Result) | YoY Comparison | ||
Change | (%) | |||
Billings | 301,164 | 323,870 | 22,706 | 7.5% |
Revenue | 58,458 | 79,158 | 20,699 | 35.4% |
(Gross margin) | (19.4%) | (24.4%) | (+5.0%) | |
SG&A expenses | 50,638 | 59,223 | 8,584 | 17.0% |
Operating income | 7,820 | 19,935 | 12,115 | 154.9% |
(Operating margin)* | (13.4%) | (25.2%) | (+11.8%) | |
Non-operating items | 1,025 | 1,582 | 556 | 54.2% |
Ordinary income | 8,846 | 21,517 | 12,671 | 143.2% |
Extraordinary items | (31) | 3,458 | 3,490 | |
Income before income taxes and minority interests | 8,814 | 24,976 | 16,161 | 183.4% |
Profit attributable to owners of parent | 4,418 | 9,837 | 5,418 | 122.6% |
* Operating margin = Operating income / Revenue
During the first quarter (April 1 to June 30, 2018) of the fiscal year ending March 31, 2019, the Japanese economy continued on a gradual recovery trend against the backdrop of steady domestic and overseas demand, despite a cautious business sentiment among corporations due to such factors as the intensifying trade conflict stemming from the United States and the rising price of raw materials. Meanwhile, the domestic advertising market*1 got off to a sluggish start compared with the steady trends in the overall economy, with levels for the two-month period from April to May falling below what they were in the same period of the previous fiscal year.
Amid such an environment, the Hakuhodo DY Group continued to make proactive efforts to develop businesses in accordance with the Medium-Term Business Plan covering the period through March 2019. As a result of such efforts, as well as the sale of shares of Mercari Inc., an investee of the consolidated subsidiary UNITED, Inc., first-quarter billings rose 7.5% year on year, to 323,870 million.
By service area, billings were down year on year in all four mass media services due in part to the rebound from the strong performance of Television in the first quarter of the previous fiscal year. Meanwhile, billings were up in other than mass media services as a result of the strong performance in primarily Internet media, as well as Marketing /Promotion and Creative, which offset decreases in Outdoor media and Others.
By client industry, the main industries where billings increased were Restaurant / Services, Beverages / Cigarettes / Luxury foods, and Finance / Insurance. On the other hand, the main industries where billings decreased were Information / Communications, Real estate / Housing facilities, and Publishing.*2
Revenue grew 20,699 million, or 35.4%, to 79,158 million, resulting from the steady expansion of existing businesses and the positive effects of incorporating profits from newly consolidated subsidiaries, in addition to the impact from the sale of shares by a consolidated subsidiary. Selling, general and administrative (SG&A) expenses were up 17.0% due to M&A to strengthen our organization and strategic investments. As a result, operating income rose 154.9% year on year, to 19,935 million, and ordinary income rose 143.2%, to 21,517 million, representing significant increases for both.
Due to the gain on the abolishment of retirement benefit plans of 3,564 million, which occurred following the transition of corporate pension schemes from a defined benefit plan to a defined contribution plan at certain consolidated subsidiaries, we recorded extraordinary gains totaling 3,928 million and extraordinary losses totaling 469 million. Factoring in these extraordinary gains and losses, income before income taxes and minority interests grew 183.4%, to 24,976 million, and profit attributable to owners of parent increased 122.6%, to 9,837 million.
Notes
1. According to the Survey of Selected Service Industries (Ministry of Economy, Trade and Industry, Japan)
2. Based on internal management categories and data compiled by the Company.
2. Consolidated Balance Sheets (Condensed), as of June 30, 2018
(Millions of yen)
31-Mar-18 | 30-Jun-18 | Comparison with March 31, 2018 | ||||
Amount | Share | Amount | Share | Change | (%) | |
Current assets | 538,905 | 67.5% | 538,007 | 65.1% | (898) | -0.2% |
Fixed assets | 259,230 | 32.5% | 288,760 | 34.9% | 29,529 | 11.4% |
Total assets | 798,135 | 100.0% | 826,767 | 100.0% | 28,631 | 3.6% |
Current liabilities | 390,851 | 49.0% | 348,401 | 42.1% | (42,450) | -10.9% |
Non-current liabilities | 39,916 | 5.0% | 63,522 | 7.7% | 23,606 | 59.1% |
Total liabilities | 430,768 | 54.0% | 411,923 | 49.8% | (18,844) | -4.4% |
Total shareholders' equity | 282,439 | 35.4% | 287,316 | 34.8% | 4,876 | 1.7% |
Accumulated other comprehensive income | 60,679 | 7.6% | 71,887 | 8.7% | 11,208 | 18.5% |
Subscription rights to shares | 454 | 0.0% | 458 | 0.0% | 3 | 0.8% |
Noncontrolling interest | 23,793 | 3.0% | 55,181 | 6.7% | 31,387 | 131.9% |
Total net assets | 367,367 | 46.0% | 414,843 | 50.2% | 47,475 | 12.9% |
Total liabilities and net assets | 798,135 | 100.0% | 826,767 | 100.0% | 28,631 | 3.6% |
2. Consolidated Forecasts for Fiscal 2018 (April 1, 2018, to March 31, 2019)
At this moment, we have not made revisions to our consolidated results forecasts.
Note: Forecasts in this press release are based on certain assumptions deemed to be reasonable by the Company at the time of announcement. Actual results may differ materially from these forecasts due to a variety of reasons.
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Hakuhodo DY Holdings Inc. published this content on 07 August 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 August 2018 06:20:10 UTC