Net sales increase due to growth in the Distribution Cloud Business and brisk sales of high-end handsets in the Mobile Network Business.

For the second quarter of the fiscal year ending December 2024, the financial results recorded net sales of ¥7.9 billion, recurring revenue of ¥3.9 billion, ordinary profit of ¥570 million, and net sales ordinary profit of 7.2%. The net sales increased due to growth in distribution and brisk sales of high-end mobile handsets in the Mobile Network Business.

By segment, the Distribution Cloud Business saw an increase in revenue due to steady growth in recurring revenue driven by services for the food retail industry, including “@rms ERP”. As for the Government Cloud Business, although revenue and profit decreased due to the decline in construction projects, DX-related services for local governments grew, leading to an increase in recurring revenue. In the Trust Business, We achieved higher net sales on the back of the “CloudCerts” roll out. Additionally, as a domestic first initiative in the digital certification of national qualifications, we have started issuing the “Digital Pharmacist Certification” (from March 2024), further advancing the expansion of “CloudCerts.”

In the Mobile Network Business, following the recovery trend seen in the first quarter, there was an increase in both revenue and profit. Regarding future shareholder return measures, the dividend per share for the fiscal year ending December 2024 is expected to increase by 3 yen to 16 yen.