SE Holdings cuts full-year and interim profit forecasts

SE Holdings and Incubations has revised its consolidated financial forecast for the second quarter (cumulative) of the fiscal year ending March 2026. Revenue is now projected at JPY3,452 million, down from JPY3,650 million, a decrease of 5.4%. Operating profit is revised to JPY388 million from JPY470 million (a 17.4% decrease), and ordinary profit to JPY306 million from JPY450 million (a 31.9% decrease). Net profit attributable to parent company shareholders is now forecast at JPY202 million, a reduction from JPY300 million (a 32.4% decrease), resulting in JPY12.57 per share compared to JPY18.70 previously.

For the full fiscal year ending March 2026, the company now expects revenue of JPY7,100 million, a JPY300 million decrease from the initial JPY7,400 million. Operating profit is revised to JPY790 million from JPY950 million, and ordinary profit to JPY640 million from JPY900 million. Net profit attributable to parent company shareholders is adjusted to JPY450 million from JPY600 million, leading to JPY28.58 per share, down from JPY38.35.

The downward revisions are primarily attributed to lower-than-expected sales in the publishing business, including books and e-books, and the corporate services business. Additionally, the decline in ordinary profit and net profit is further impacted by foreign exchange losses associated with foreign currency-denominated borrowings.