Digital Arts Inc. Financial Summary for the Second Quarter (Interim) of the Fiscal Year Ending March 2027

Performance Overview

In the second quarter, Digital Arts achieved revenue of 6,024 million yen (a 20.7% increase YoY), operating income of 2,785 million yen (a 37.8% increase YoY), ordinary income of 2,838 million yen (a 39.1% increase YoY), and interim net income attributable to owners of parent of 1,924 million yen (a 36.7% increase YoY), maintaining solid growth despite external conditions. Contract value increased to 6,889 million yen YoY, driven by new and renewed contracts across corporate, public sector, and consumer segments. The full-year outlook remains unchanged from the previously disclosed forecast.

Key Points This Period and Segment Trends

In the corporate market, demand expansion for products such as m-FILTER and expanded distribution through collaboration with the NEC Group under the "NEC Cyber Secure Package" contributed to growth. In the public sector, progress in revenue recognition related to the GIGA School Initiative Phase 2 and advancement in acquiring new projects such as next-generation school administration DX were observed. In the consumer market, demand for i-Filter decreased, but distribution via MVNOs continued to expand and multi-year package promotions were strengthened. Overall, cloud-related contract value is expected to contribute to future revenue.