T-GAIA CORPORATION Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2024
(Three Months Ended June 30, 2023) (Based on J-GAAP)
August 1, 2023 | ||
Company name: | T-Gaia Corporation | Listing: Tokyo Stock Exchange |
Stock code: | 3738 | URL: https://www.t-gaia.co.jp/ |
Representative: | Masato Ishida, President & CEO | |
Contact: | Kaoru Hayashi, Senior Managing Officer & General Manager of Corporate Planning & Strategy Dept. | |
Tel: +81-3-6409-1010 | ||
Scheduled date of filing Quarterly Securities Report: August 2, 2023 | ||
Scheduled commencement date of dividend payout: - |
Quarterly financial results supplementary explanatory documents: Yes
Quarterly financial results presentation: None
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2024 (April 1, 2023 - June 30, 2023)
(1) Consolidated results of operations (three months)
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||
owners of parent | |||||||||||||
1Q FY 2024 | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
96,431 | (11.1) | 1,039 | (54.2) | 1,868 | (42.8) | 1,117 | (53.2) | ||||||
1Q FY 2023 | 108,497 | (2.4) | 2,271 | (28.9) | 3,268 | (32.9) | 2,388 | (25.9) | |||||
Note: Comprehensive | income (million | yen): | 1Q FY | 2024: 1,165 / | [(52.2)%] 1Q | FY 2023: 2,438 / | [(24.3)%] | ||||||
Earnings per | Diluted earnings | ||||||||||||
share | per share | ||||||||||||
1Q FY 2024 | Yen | Yen | |||||||||||
20.02 | - | ||||||||||||
1Q FY 2023 | 42.82 | - | |||||||||||
(2) Consolidated financial position | |||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||
1Q FY 2024 | Million yen | Million yen | % | ||||||||||
239,415 | 73,984 | 30.7 | |||||||||||
FY 2023 | 246,068 | 74,887 | 30.2 | ||||||||||
Reference: Shareholders' | equity (million yen): | 1Q FY | 2024: 73,505 | FY 2023: | 74,385 |
2. Dividends
Annual dividends | ||||||
1Q-end | Interim | 3Q-end | Year-end | Annual | ||
FY 2023 | Yen | Yen | Yen | Yen | Yen | |
- | 37.50 | - | 37.50 | 75.00 | ||
FY 2024 | - | |||||
FY 2024 | 37.50 | - | 37.50 | 75.00 | ||
(forecasts) | ||||||
Note: Revisions to the dividend forecast most recently announced: None |
3. Consolidated Forecasts for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)
(Percentages represent year-over-year changes) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per | |||||||
owners of parent | share | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 459,500 | 1.3 | 8,200 | 17.2 | 12,400 | 6.5 | 8,000 | 0.8 | 143.39 | ||
Note: Revisions to | the financial forecast most recently announced: None |
Notes
(1) Changes in significant subsidiaries during the period (three months) under review (Changes in subsidiaries accompanying change in the scope of consolidation): Yes
Newly included: | 1 company (T-Gaia Asia Pacific Pte. Ltd.) |
- Application of accounting procedures specific to creation of quarterly consolidated financial statements: None
- Changes in accounting principles, estimates and restatements
- Changes in accounting principles caused by revision of accounting standards, etc.: None
- Changes in accounting principles other than those mentioned above: None
- Changes in accounting estimates: None
- Restatement: None
- Number of shares issued and outstanding (shares of common stock)
- Number of shares outstanding (including treasury shares) at the end of the period
- Number of treasury shares at the end of the period
- Average number of shares outstanding during the period (three months)
1Q FY 2024 | 56,074,000 shares | FY 2023 | 56,074,000 shares |
1Q FY 2024 | 282,309 shares | FY 2023 | 282,309 shares |
1Q FY 2024 | 55,791,691 shares | 1Q FY 2023 | 55,765,134 shares |
- Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
- Cautionary statement with respect to forward-looking statements
(Disclaimer on forward-looking statements, etc.)
These materials contain forward-looking information including earnings projections based on information currently available to the Company and certain assumptions considered reasonable in the judgment of the Company. Nothing contained in these materials is meant to suggest that the Company promises to attain the said projections. Moreover, due to various factors, actual results may materially differ from projections.
(Concerning quarterly financial results supplementary explanatory documents)
Financial results supplementary explanatory documents will be posted in Japanese on August 1, 2023.
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2024 (Three Months Ended June 30, 2023) (Based on J-GAAP)
- Attachment: Table of Contents
1. Qualitative Information Concerning the First Quarter Financial Results | 2 | |
(1) | Explanation of operating performance | 2 |
(2) | Explanation of financial position | 3 |
(3) | Explanation of forward-looking information including the consolidated financial forecasts | 4 |
2. Quarterly Consolidated Financial Statements and Notes | 5 | |
(1) | Quarterly consolidated balance sheets | 5 |
(2) | Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income | 6 |
(Quarterly consolidated statements of income) | ||
(Consolidated three months period) | 6 | |
(Quarterly consolidated statements of comprehensive income) | ||
(Consolidated three months period) | 6 | |
(3) | Notes to quarterly consolidated financial statements | 7 |
(Notes on the going-concern assumption) | 7 | |
(Notes on significant changes in shareholders' equity) | 7 | |
(Segment information, etc.) | 7 |
- 1 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2024 (Three Months Ended June 30, 2023) (Based on J-GAAP)
1. Qualitative Information Concerning the First Quarter Financial Results
-
Explanation of operating performance
In the period under review (April to June 2023), amid the continuation of global monetary tightening, etc., the downturn in overseas
business conditions has been a downward risk on the business conditions in Japan. Looking ahead, careful attention needs to be paid to the impacts of rises in commodity prices, supply side limitations, fluctuations in the financial and capital markets, etc.
In the market for mobile phone handsets, which is the main business field of the Group (the Company, its consolidated subsidiaries, and its equity-method affiliates), the replacement cycle of mobile phone handsets is lengthening due to soaring smartphone prices and other factors. In addition, some telecommunications carriers are planning to consolidate or abolish carrier shops in the medium to long term.
Meanwhile, in telecommunication services provided by telecommunication carriers, progress has been made on the shift to 5G. Smartphones are more than just communication devices: they play an important role in realizing a smart life for each and every customer by linking with various services such as finance, payment, and entertainment. In this way, great change is underway in the role played by mobile phone distributors, including the Company, and the competitive environment.
Under this business environment, the Group steadily worked toward the realization of the TG Universe (the ecosystem within T- Gaia), the Group-wide strategy in our medium-term management plan (FY2022-FY2024), and initiatives to achieve the TG Material Issues (eight priority issues). With the aim of transforming the well-balanced business portfolio so that it is not dependent on the Consumer Mobile Business Segment, we are actively carrying out growth investments, particularly in the Enterprise Solutions Business Segment and Smart Life & QUO Card Business Segment.
We also set up a project organization in April 2023 to transform our shops, mainly carrier shops, to adopt a customer-centric business model. This is a foothold to promote horizontal collaboration across all businesses, under which, we are working on "provision of smart life-related services at shops," "DX support for small and medium-sized businesses," and "collaboration with local governments." Both our consumer and enterprise client businesses are shifting focus from a product-out approach, or product sales-oriented approach, to a market-in approach, in which we provide services in line with customer requests, aiming to expand revenue.
Consolidated business results for the period under review marked net sales of 96,431 million yen (-11.1% compared with the year- earlier period), with operating profit of 1,039 million yen (-54.2%). Ordinary profit marked 1,868 million yen (-42.8%) and profit attributable to owners of parent posted 1,117 million yen (-53.2%).
The main reason for the decrease in both sales and profit was a decline in commission income due to a fall in the number of contracts for mobile phones such as smartphones (below, "mobile phone contracts") in the Consumer Mobile Business Segment.
Results by business segment for the period under review are described below.
Consumer | Enterprise | Smart Life & | ||
Solutions | QUO Card | |||
Mobile Business | ||||
Business | Business | |||
Segment | ||||
Segment | Segment | |||
Net sales | 79,569 | 9,400 | 7,443 | |
(13.2%) | 9.3% | (9.5%) | ||
Profit attributable to | 302 | 153 | 575 | |
owners of parent | (71.4%) | (75.6%) | (12.0%) | |
Supplementary | 657 | 288 | 38 | |
information - | ||||
(56.3%) | (43.4%) | (81.2%) | ||
Operating profit | ||||
* Percentages represent | year-over-year changes |
Others and adjustment amounts
18
(16.0%)
85
82.7%
55
2.6%
(Millions of yen)
Consolidated
financial results
96,431
(11.1%)
1,117
(53.2%)
1,039
(54.2%)
- 2 -
T-Gaia Corporation (3738) / Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2024 (Three Months Ended June 30, 2023) (Based on J-GAAP)
[Consumer Mobile Business Segment]
The Consumer Mobile Business Segment is engaged in intermediary services specializing in contracts for telecommunications services, and other types of contracts provided by each telecommunications carrier, as well as the sales of smartphones, etc. For the Group's shops across Japan, we are aiming to realize shops that are "regional ICT hubs" rather than mere "points of sale," and which provide impressive experience to customers through high quality services and proposals with utility value that meets customer requirements.
The number of mobile phone contracts in the Consumer Mobile Business Segment was 700,000 (a decrease of 15.7% compared to the same period of the previous fiscal year) due to the lengthening replacement cycle of mobile phones caused by soaring smartphone prices and other factors. We have introduced Smart Online Support at our shops, which provides remote support for initial setup and instructions on smartphone use, to make our operations more efficient and increase customer satisfaction through the provision of support tailored to each customer by specialist staff. Also, in addition to consolidating or abolishing shops throughout the previous fiscal year, we have been more effective in providing on-site sales services at shopping malls and for remote locations where there are no local shops, thereby controlling selling, general and administrative expenses.
Sales of original products, especially glass coatings and security products, remained solid, exceeding those of the same period of the previous fiscal year. However, this was not enough to offset the decline in commission income due to a fall in the number of mobile phone contracts.
As a result, net sales marked 79,569 million yen (-13.2% compared with the year-earlier period), with profit attributable to owners of parent of 302 million yen (-71.4%).
[Enterprise Solutions Business Segment]
The Enterprise Solutions Business Segment is engaged in the sale of smartphones, etc. to corporate customers, the provision of solution services related to devices and network management services, etc., and sales and intermediary services specializing in optical communication line service contracts for corporate and individual customers. The Group is expanding products and services to create a one-stop channel for meeting customers' requirements through its Life Cycle Management (LCM) business which revolves around administrative and support services for device life cycles spanning from procurement, propositions, and introduction support for smart devices including PCs, to building Wi-Fi environment, maintenance, operations, and updating services.
The number of mobile phone contracts in the Enterprise Solutions Business Segment was 68,000 (a decrease of 3.9% compared to the same period of the previous fiscal year). We expanded products and services in the LCM business and the number of management IDs for network administrative services (movino star), helpdesks, and the like surpassed the same period of the previous fiscal year. In addition to proposing new business areas such as proposing the building, operation and maintenance of networks that use edge functions, we continue to focus on local government sales against the background of the "Vision for a Digital Garden City Nation" advocated by the Japanese government. On the other hand, depreciation and other expenses increased from the same period of the previous fiscal year due to the enhancement of sales system functions.
In products related to fixed-line telecommunications, the cumulative number of lines owned by the Company's own "TG Hikari" fiber-optics access service rose steadily.
As a result, net sales marked 9,400 million yen (+9.3% compared with the year-earlier period), with profit attributable to owners of parent of 153 million yen (-75.6%).
[Smart Life & QUO Card Business Segment]
The Smart Life & QUO Card Business Segment is mainly engaged in sales of PIN (prepaid codes), gift cards, and smartphone accessories through major nationwide convenience store chains, as well as ESG-related businesses such as renewable energy, healthcare, ICT schools for children, and e-sports. It also includes the Company's consolidated subsidiary QUO CARD Co., Ltd. which is tasked with the issuance and settlement of "QUO Card" and "QUO Card Pay" and the sales and repair/maintenance of card- handling equipment, etc.
As stated in the "Notice of Change in Reportable Segments" dated May 1, 2023, one of the segment names has been changed beginning in the period under review.
In the Smart Life Business, PIN and gift card transaction volumes were down compared with the same period of the previous fiscal year. The demand for a variety of digital content, including games, music, and video streaming, is gradually declining along with changing lifestyles. Sales in the wholesale of smartphone accessories mainly to convenience stores were robust, and sales of wearable device "Fitbit" were also strong.
We are also working on new businesses, including the launch of VOYAGEESIM for Europe, an eSIM data service for travelers to Europe, in April 2023.
In the QUO Card Business, the amount of issuance for QUO Card and Quo Card Pay increased compared to the same period of the previous fiscal year. QUO Card Pay has been adopted in the Tokyo Metropolitan Government's initiative "Tokyo Childbirth and Child Care Support Project" as one of the products offered for childcare products and parenting support services.
As a result, net sales marked 7,443 million yen (-9.5% compared with the year-earlier period), with profit attributable to owners of parent of 575 million yen (-12.0%).
-
Explanation of financial position (Assets)
Current assets at the end of the period under review were 194,869 million yen, which was 5,550 million yen lower than at the end of the previous fiscal year. This was mainly due to a 4,112 million yen decrease in notes and accounts receivable - trade. Non-current assets at the end of the period under review were 44,545 million yen, which was 1,103 million yen lower than at the end of the previous fiscal year. This was mainly due to a 1,229 million yen decrease in investment securities due to change in the scope of consolidation.
As a result, total assets posted 239,415 million yen, which was 6,653 million yen lower than at the end of the previous fiscal year.
(Liabilities)
Current liabilities at the end of the period under review were 161,190 million yen, which was 5,009 million yen lower than at the end of the previous fiscal year. This was mainly due to a 2,281 million yen decrease in accounts payable - other and a 2,080 million - 3 -
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T-Gaia Corporation published this content on 18 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2023 06:04:01 UTC.
