Aeon Financial forecasts losses, revises earnings outlook

Aeon Financial Services (TSE: 8570) announced it expects to record extraordinary losses in its consolidated and individual financial results. These losses stem from approximately ¥9.9 billion in fraudulent transactions detected within its domestic credit card operations, specifically affecting offline transactions. In addition, the company expects to record an investment loss of ¥15.2 billion related to its investment in the subsidiary Aeon Allianz Life Insurance. As a result, Aeon Financial is revising its consolidated earnings forecast for the fiscal year ending February 2025, now projecting a net profit attributable to shareholders of ¥18.7 billion, down from the previous forecast of ¥21 billion. Despite increased revenues and operating profit, the extraordinary losses are expected to impact overall profitability.