Adways Inc. (2489) on Nov. 2 cut its full-year net profit forecast by 40.0% to ¥900 million from ¥1.5 billion after booking a ¥759 million impairment loss in the third quarter, and lowered its annual dividend forecast to ¥11.75 per share from ¥12.06.
The Tokyo-based company said the impairment covered buildings (attached facilities) and other tangible fixed assets as well as software and other intangible assets, and was recognized after it reviewed their future recoverability in light of the current business environment and the progress of its business plan. Forecasts for sales, operating profit and ordinary profit for the year ending December 2026 were left unchanged.
| Item | Previous forecast | New forecast |
|---|---|---|
| Net sales | ¥11.8 billion | ¥11.8 billion |
| Operating profit | ¥1.5 billion | ¥1.5 billion |
| Ordinary profit | ¥1.75 billion | ¥1.75 billion |
| Net profit attributable to owners of parent | ¥1.5 billion | ¥900 million |
| EPS | ¥38.38 | ¥23.03 |
The year-end ordinary dividend was cut to ¥6.75 from ¥7.06 under the company's policy of targeting a dividend on equity (DOE) ratio of 2% or more, while a ¥5.00 commemorative dividend marking the 20th anniversary of its Tokyo Stock Exchange listing was unchanged. It paid ¥6.42 for the previous year.
For the January-September period, sales rose 5.1% to ¥9.32 billion, operating profit came to ¥1.35 billion versus ¥5 million a year earlier, ordinary profit jumped 619.6% to ¥1.62 billion, and net profit attributable to owners of the parent rose 612.1% to ¥694 million. The company said the second-quarter sale of subsidiaries that ran advertising businesses in China and Hong Kong weighed on revenue, but advertising demand grew for its automated marketing platform UNICORN and from game and manga app advertisers in its agency business. Optimizing its hiring plans helped contain selling, general and administrative expenses.
What's next: The company scheduled an earnings briefing for Nov. 2, with a video link to be posted on its website the same day.
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