Fiscal Year Ending March 2026 Q3 Financial Summary [Japanese GAAP] (Consolidated)

Performance Overview

In the cumulative third quarter period of the fiscal year ending March 2026, consolidated revenue was JPY 595,323 million (down 9.7% YoY), operating income was JPY 28,599 million (up 26.3% YoY), ordinary income was JPY 29,540 million (up 18.7% YoY), and net income attributable to owners of the parent was JPY 10,371 million. Operating income increased year-over-year due to steady performance in the domestic advertising market and effective cost control. Adjusted gross profit margin improved by 1.2 points to 25.8%, and adjusted operating margin also improved to 13.2% through reductions in selling, general and administrative expenses.

Financial Position and Dividend Status

Total assets decreased compared to the previous year to JPY 1,007,643 million; however, the equity ratio improved from 37.2% to 37.9%. While the number of outstanding shares remained unchanged at 389,559,436 shares, the number of treasury shares at period end increased to 29,538,996 shares. The annual dividend is forecasted at JPY 32 per share, maintaining stable dividend payments unchanged from the previous year.

Consolidated Earnings Guidance

The full-year consolidated earnings guidance for the fiscal year ending March 2026 forecasts revenue of JPY 970,000 million (up 1.8% YoY), operating income of JPY 40,000 million (up 6.4% YoY), ordinary income of JPY 43,000 million (up 0.8% YoY), and net income attributable to owners of the parent of JPY 20,000 million (up 85.7% YoY). Earnings per share are projected at JPY 54.93.

Impact of Business Combinations

On December 10, 2025, Hakuhodo DY Holdings Inc. acquired common stock and stock acquisition rights of Digital Holdings Inc. through a tender offer, increasing its voting rights to 51.15%, and consequently made it a consolidated subsidiary as of the same date. This caused significant changes in the scope of consolidation.