Sakura Internet announces extraordinary income from government subsidies

Sakura Internet (TSE:3778) announced it will recognize extraordinary income and an offsetting extraordinary loss in its first quarter results for the fiscal year ending March 31, 2026. The extraordinary income, capped at JPY 6,365 million, stems from subsidies granted by the Ministry of Economy, Trade and Industry's Cloud Program Supply Assurance Plan. These subsidies aim to support the company's GPU cloud service. The offsetting extraordinary loss, also capped at JPY 6,365 million, relates to the tax-purpose reduction entry of non-current assets. The portion of the subsidy allocated to the acquisition of fixed assets will be recorded as "Income by government subsidies" under special gains, while an equivalent amount will be recorded as "Loss on the tax-purpose reduction entry of non-current assets" under special losses. The company plans to disclose the final figures in its Q1 financial results, scheduled for release on July 28, 2025. The impact on the consolidated financial results for the fiscal year ending March 31, 2026, is expected to be minimal.