Fiscal Year Ending February 2027 Q2 Financial Results FAQ

Summary of Results

Eltes Co.,Ltd. recorded consolidated net sales of 4,453 million yen in Q2 of the fiscal year ending February 2027, representing an increase of 8.1% year-over-year. Consolidated operating income was 135 million yen (YoY +46.6%), progressing favorably while absorbing one-time costs such as double rent associated with office relocation. Consolidated ordinary income was 120 million yen (+115.0%), and interim net income attributable to owners of parent was a deficit of -19 million yen. The equity ratio improved to 32.9%. Progress toward the full-year forecast is 52.4% for net sales and 28.2% for operating income, with expectations for improved profitability in the second half due to the resolution of double rent and recovery of investments.

Outlook and Capital Policy

Progress against the full-year earnings forecast is evaluated as steady, and profits are expected to accelerate in the second half. The company aims to complete the sales of GloLing and Playnext Lab within this fiscal year; proceeds from these sales are expected to reduce interest-bearing debt and decrease goodwill amortization and interest burden, potentially contributing to improvements in ordinary income and net income. Shareholder returns are targeted in a three-year plan to expand the number of individual investors, and the company is considering the initiation of dividends.