February 5, 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 3Q of FY2017
Hakuhodo DY Holdings Inc. has summarized key data from its third-quarter earnings report for fiscal 2017 (the year ending March 31, 2018), which was released today, in the following reference materials.
1. Summary of Consolidated Income Statements (April 1 to December 31, 2017)
(Millions of yen)
3Q of FY2016 (Result) | 3Q of FY2017 (Result) | YoY Comparison | ||
Change | (%) | |||
Billings | 897,737 | 958,518 | 60,780 | 6.8% |
Revenue | 175,671 | 193,624 | 17,953 | 10.2% |
(Gross margin) | (19.6%) | (20.2%) | (+0.6%) | |
SG&A expenses | 143,876 | 157,252 | 13,375 | 9.3% |
Operating income | 31,794 | 36,371 | 4,577 | 14.4% |
(Operating margin)* | (18.1%) | (18.8%) | (+0.7%) | |
Non-operating items | 1,154 | 1,941 | 787 | 68.2% |
Ordinary income | 32,948 | 38,313 | 5,364 | 16.3% |
Extraordinary items | (430) | (523) | (92) | |
Income before income taxes and minority interests | 32,517 | 37,790 | 5,272 | 16.2% |
Profit attributable to owners of parent | 18,510 | 22,129 | 3,618 | 19.6% |
* Operating margin = Operating income / Revenue
During the first three quarters (April 1 to December 31, 2017) of the fiscal year ending March 31, 2018 (hereinafter, "the cumulative third quarter"), the Japanese economy showed a clear trend toward recovery, with exports increasing following an economic recovery overseas and capital investments rising on the back of improved corporate earnings. In addition, the Japanese economy was supported by various other factors, such as the positive turnaround in the consumer mindset-brought about by an improved employment environment and increased stock prices-as well as the various economic policies implemented by the Japanese government. Meanwhile, the domestic advertising market*1 during the first half faced sluggish conditions compared with the overall Japanese economy, with levels falling slightly below where they were during the same period of the previous fiscal year. However, entering the second half of the year, signs of recovery appeared as levels surpassed those of the previous fiscal year in both October and November.
Amid this environment, the Hakuhodo DY Group has continued to pursue proactivebusiness development in accordance with its Medium-Term Business Plan, which runs through the fiscal year ending March 31, 2019. As a result, billings increased 6.8% compared with the same period of the previous fiscal year, to 958,518 million.
By service area for the cumulative third quarter, billings were down year on year for Newspapers and Radio. However, strong billings for Television resulted in an overall increase in the four mass media services. Performance was solid in all areas of other than mass media services, centered on Internet Media and Marketing / Promotion, resulting in a year-on-year increase in billings.
By client industry, billings were up in 16 out of the 21 client industries in which we are involved. The main industries where billings increased were Automobiles / Related products, Information / Communications, and Transportation / Leisure. On the other hand, the main industries where billings decreased were Distribution / Retailing, Beverages / Cigarettes / Luxury foods, and Precision machinery / Office supplies.*2
Revenue increased 17,953 million, or 10.2%, to 193,624 million, due to the steady expansion of existing businesses and the positive effects of incorporating profits from newly consolidated subsidiaries. Selling, general, and administrative (SG&A) expenses were up 9.3% following measures to strengthen the organization through M&A and other strategic investments. As a result, operating income increased 14.4% to 36,371 million, and ordinary income rose 16.3%, to 38,313 million, representing large increases for both.
With the additional recording of 493 million in extraordinary gains and 1,016 million in extraordinary losses, income before income taxes and minority interests grew 16.2%, to 37,790 million, and profit attributable to owners of parent rose 19.6%, to 22,129 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 December 31, 2017
(Millions of yen)
31-Mar-17 | 31-Dec-17 | Comparison with March 31, 2017 | ||||
Amount | Share | Amount | Share | Change | (%) | |
Current assets | 516,183 | 71.5% | 506,138 | 68.3% | (10,044) | -1.9% |
Fixed assets | 205,868 | 28.5% | 234,372 | 31.7% | 28,504 | 13.8% |
Total assets | 722,051 | 100.0% | 740,511 | 100.0% | 18,459 | 2.6% |
Current liabilities | 359,503 | 49.8% | 339,857 | 45.9% | (19,646) | -5.5% |
Non-current liabilities | 36,729 | 5.1% | 41,923 | 5.7% | 5,193 | 14.1% |
Total liabilities | 396,233 | 54.9% | 381,780 | 51.6% | (14,452) | -3.6% |
Total shareholders' equity | 262,922 | 36.4% | 274,895 | 37.1% | 11,973 | 4.6% |
Accumulated other comprehensive income | 41,784 | 5.8% | 61,044 | 8.2% | 19,259 | 46.1% |
Subscription rights to shares | 283 | 0.0% | 411 | 0.1% | 128 | 45.2% |
Noncontrolling interest | 20,828 | 2.9% | 22,379 | 3.0% | 1,551 | 7.4% |
Total net assets | 325,818 | 45.1% | 358,730 | 48.4% | 32,912 | 10.1% |
Total liabilities and net assets | 722,051 | 100.0% | 740,511 | 100.0% | 18,459 | 2.6% |
3. Consolidated Forecasts for Fiscal 2017 (April 1, 2017 to March 31, 2018)
In light of the financial results for the cumulative third quarter, we have reviewed the consolidated forecast for the full year. As a result, we have made upward revisions to our forecasts for billings, operating income, ordinary income, and profit attributable to owners of parent. Please note that, although we are expecting to record an extraordinary loss due to the adoption of a life plan support system, which accompanied reforms to our corporate pension schemes, we still believe that profit attributable to owners of parent will surpass the forecast we announced at the beginning of the year.
(Millions of yen)
Full-year | ||||
FY2016 (Result) | FY2017 (Forecasts) | Y o Y Comparisons | ||
Change | (%) | |||
Billings | 1,255,474 | 1,330,000 | 74,525 | 5.9% |
Revenue | 248,640 | 271,000 | 22,359 | 9.0% |
(Gross margin) | (19.8%) | (20.4%) | (+0.6%) | |
Operating income | 47,261 | 51,000 | 3,738 | 7.9% |
Ordinary income | 45,491 | 53,500 | 8,008 | 17.6% |
Profit attributable to owners of parent | 25,880 | 27,500 | 1,619 | 6.3% |
(Operating margin)* | (19.0%) | (18.8%) | (-0.2%) |
(Reference)
Full-year Forecasts as of May 12, 2017 | Change | (%) |
1,317,000 | 13,000 | 1.0% |
266,000 | 5,000 | 1.9% |
(20.2%) | (+0.2%) | |
49,500 | 1,500 | 3.0% |
51,000 | 2,500 | 4.9% |
27,400 | 100 | 0.4% |
(18.6%) | (0.2%) |
* Operating margin = Operating income / Revenue
(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.
Hakuhodo DY Holdings Inc. published this content on 05 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 February 2018 06:24:08 UTC.
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