Sansan reports Q4 results with ¥2.3 billion impairment loss

Published 14/07/2025, 10:24
Sansan reports Q4 results with ¥2.3 billion impairment loss

Investing.com -- Sansan reported its fourth-quarter results on Monday, revealing mixed performance with a significant impairment charge affecting bottom-line results.

The company recorded revenue of ¥12.1 billion for the quarter, representing a 25.1% increase year-on-year. However, adjusted operating profit came in at ¥921 million, which despite showing a 54.8% year-on-year improvement, fell considerably short of market expectations.

The earnings miss was primarily attributed to higher-than-anticipated advertising expenditures, which reached ¥5.1 billion for the fiscal year ending May 2025. Television commercials were identified as the main driver behind these elevated costs.

Sansan also reported extraordinary losses totaling ¥2.53 billion in Q4, with ¥2.3 billion specifically related to its investment in Unipos, a peer-to-peer bonus system provider. This impairment was triggered by a call option exercise by Development Bank of Japan (DBJ).

Looking ahead, the company provided guidance for fiscal year 2026, projecting sales between ¥52.7 billion and ¥54.0 billion, representing 22.0-25.0% growth. Adjusted operating profit is expected to range from ¥6.85 billion to ¥8.64 billion, indicating potential growth of 92.7-143.0%.

In the Sansan/Bill One segment, Q4 sales reached ¥10.4 billion, up 25.3% year-on-year, with adjusted operating profit of ¥903 million, an 85.3% increase. The Bill One service showed revenue growth of 46.1% to ¥2.8 billion, with paid subscriptions increasing 39.6% to 3,932.

The Eight Business Unit reported Q4 revenue of ¥1.591 billion, a 25.6% year-on-year increase, with adjusted operating profit of ¥24 million.

Jefferies analysts noted the results as "negative," citing the operating profit miss and large impairment, while questioning whether the increased advertising spending would justify itself through future growth.

Further details are expected following Sansan’s results meeting scheduled for July 15.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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