Affiliate Marketing

ValueCommerce : Consolidated Financial Results for Q2(Cumulative) of FY2022 (Under Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

July 27, 2022

Consolidated Financial Results

for Q2(Cumulative) of FY2022

(Under Japanese GAAP)

Company name:

ValueCommerce Co., Ltd.

Listing:

Tokyo Stock Exchange

Securities code:

2491

URL:

https://www.valuecommerce.co.jp/en/

Representative:

Jin Kagawa, Representative Director, President and CEO

Inquiries:

Masatomo Endo, Director of the Board, CFO

Telephone:

+81-3-5210-6688

Scheduled date to file quarterly securities report:

August 8, 2022

Scheduled date to commence dividend payments:

August 31, 2022

Preparation of supplementary material on quarterly financial results: Yes

Holding of quarterly financial results briefing:

Yes (for analysts and institutional investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net income

Net sales

Operating income

Ordinary income

attributable to owners

of parent

Six months ended

¥ millions

%

¥ million

%

¥ millions

%

¥ millions

%

June 30, 2022

18,272

13.4

4,446

20.1

4,516

20.7

3,129

535.5

June 30, 2021

16,113

10.9

3,701

24.0

3,741

23.3

492

(75.9)

Note: Comprehensive income

For the six months ended June 30, 2022:

¥3,172 million

[555.0%]

For the six months ended June 30, 2021:

¥484 million

[(76.2)%]

Basic earnings

Diluted earnings

per share

per share

Six months ended

¥

¥

June 30, 2022

96.82

96.77

June 30, 2021

15.24

15.23

(2) Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

Net assets per share

As of

¥ millions

¥ millions

%

¥

June 30, 2022

26,207

18,943

72.3

585.78

December 31, 2021

23,936

16,566

69.2

512.53

Reference: Equity

As of June 30, 2022:

¥18,940 million

As of December 31, 2021: ¥16,562 million

2. Dividends

Annual dividends per share

Q1

Q2

Q3

Q4

Total

¥

¥

¥

¥

¥

FY2021

17.00

26.00

43.00

FY2022

27.00

FY2022 (Forecast)

29.00

56.00

Note: Revisions to the forecast of dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

(Percentages indicate year-on-year changes.)

Operating

Net income

Basic earnings

Net sales

Ordinary income

attributable to

income

per share

owners of parent

¥ millions

%

¥ millions

%

¥ millions

%

¥ millions

%

¥

Fiscal year ending

37,000

10.2

8,700

10.0

8,700

9.5

6,000

84.0

185.59

December 31, 2022

Note: Revisions to the consolidated earnings forecasts most recently announced: None

* Notes

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
  2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatement
    1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
    2. Changes in accounting policies due to other reasons: None
    3. Changes in accounting estimates: None
    4. Restatement: None

Note: For details, please refer to “2. Quarterly consolidated financial statements and significant notes thereto,

    1. Notes to quarterly consolidated financial statements (Changes in accounting policies)” on page 9 of the attached materials.
  1. Number of issued shares (common shares)
  1. Total number of issued shares at the end of the period (including treasury shares)
  2. Number of treasury shares at the end of the period
  3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

shares

shares

As of June 30, 2022

34,471,000

As of December 31,

34,471,000

2021

As of June 30, 2022

2,136,853

As of December 31,

2,155,503

2021

Six months ended

32,323,105

Six months ended

32,307,334

June 30, 2022

June 30, 2021

  • Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
  • Proper use of earnings forecasts, and other special matters

(Caution regarding forward-looking statements and others)

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements herein do not constitute assurances regarding the Company’s actual results. Actual financial and other results may differ substantially from the statements herein due to various factors. Please refer to “1. Qualitative information regarding financial results for the second quarter of the fiscal year, (3) Information about consolidated earnings forecasts” on page 4 of the attached materials for the suppositions that form the assumptions for the earnings forecasts and cautions regarding the use of the earnings forecasts.

(Means of access to supplementary material on quarterly financial results)

The supplementary material on quarterly financial results will be available on the Company’s website.

ValueCommerce Co., Ltd. (2491)

Attached Material

Index

1. Qualitative information regarding financial results………………………………………………………………………..

2

(1)

Analysis of operating results…………………………………………………………………………………………………

2

(2)

Analysis of financial positions………………………………………………………………………………………………

3

(3)

Information about consolidated earnings forecasts…………………………………………………………………..

4

2. Quarterly consolidated financial statements and significant notes……………………………………………………

5

(1)

Quarterly consolidated balance sheet……………………………………………………………………………………..

5

(2)

Quarterly consolidated statement of comprehensive income (cumulative) ………………………………….

7

(3)

Quarterly consolidated statement of cash flows ………………………………………………………………………

8

(4)

Notes to quarterly consolidated financial statements………………………………………………………………..

9

(Notes – Uncertainties of entity’s ability to continue as going concern)………………………………………

9

(Notes when there are significant changes in amounts of equity) ………………………………………………

9

(Adoption of accounting treatment specific to the preparation of

quarterly consolidated financial statements)……………………………………………………………………………

9

(Changes in accounting policies) …………………………………………………………………………………………..

9

(Segment information)……………………………………………………………………………………………………….

10

ValueCommerce Co., Ltd. (2491)

1. Qualitative information regarding financial results

(1) Analysis of operating results

During the second quarter of the fiscal year(cumulative), the Japanese economy was poised for recovery amid a situation of economic and social activities becoming increasingly normalized as a result of measures implemented against COVID-19 having taken hold. However, continued attention should be paid to the impact of COVID-19 infection, along with prevailing concerns regarding potential effects of downside risk due to factors that include prolonged conflict in Ukraine, curtailed economic activity in China, and volatility in financial and capital markets.

In this environment, the Group has been focusing on providing effective marketing solutions to maximize performance of commerce business operators, “Gross Merchandise Value (GMV),” which is reflected in the following consolidated operating results.

For the second quarter of the fiscal year (cumulative), net sales were ¥18,272 million (up 13.4% year on year). In “Affiliate Marketing” pay-per-performance advertising, net sales increased year-on-year due to modest recovery in Travel, which involves going out, and growth in the Finance category.

In addition, in “StoreMatch” pay-per-click advertising for stores in the online shopping mall, net sales increased year-on-year due to increases in the amount spent on advertising placement and in the number of business operators (stores) using the service amid growing business operator focus toward e-commerce. On the other hand, for the STOREs R∞” CRM tool for stores in the online shopping mall, net sales decreased year-on-year because of the impact from diversifying advertising materials for online shopping malls and because of an increase in usage by stores with low rates of return.

Selling, general and administrative expenses were ¥2,273 million (down 14.2% year on year) due to (i) the absence of temporary increase in expenses relating to the relocation of the head office, which took place in the first quarter of the previous fiscal year, and decrease in rent and other office-related expenses, and (ii) a decrease in amortization of goodwill and depreciation due to the recording of impairment loss on assets related to Dynatech inc., whose customers are accommodation facilities, in the first quarter of the previous fiscal year.

Operating income was ¥4,446 million (up 20.1% year on year) due to the increase in net sales and decrease in selling, general and administrative expenses.

Ordinary income was ¥4,516 million (up 20.7% year on year) due to recognizing gain on investments in investment partnerships of ¥66 million under non-operating income.

Net income attributable to owners of parent was ¥3,129 million (up 535.5% year on year) due to the absence of recording of impairment loss on assets related to Dynatech inc. under extraordinary loss in the first quarter of the previous fiscal year, despite the recording of income taxes of ¥1,387 million.

In addition, the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and relevant ASBJ regulations from the beginning of the first quarter of the fiscal year. Please refer to “(Application of Accounting Standard for Revenue Recognition, etc.)” in “(Changes in accounting policies)” in “(4) Notes to Consolidated Financial Statement” in “2. Earnings Results and Notes.” The impact of this change in accounting policy is immaterial.

Segment performance was as follows:

  1. Marketing Solutions Business
    Marketing Solutions Business provides solutions oriented to attracting customers to e-commerce websites of commerce business operators. Its main service is that of “Affiliate Marketing” pay-per-performance advertising.
    During the second quarter of the fiscal year (cumulative), net sales increased year-on-year in “Affiliate Marketing” due to modest recovery in Travel, which involves going out, and growth in the Finance category. As a result, this segment attained net sales of ¥8,469 million (up 7.2% year on year) and segment operating income of ¥1,598 million (up 7.5% year on year).

ValueCommerce Co., Ltd. (2491)

    1. EC Solutions Business
      EC Solutions Business provides solutions oriented to sales promotion on e-commerce websites of commerce business operators. Its main services are the “STORE’s R ∞” CRM tool for stores in the online shopping mall operated by Yahoo Japan Corporation, and “StoreMatch” pay-per-click advertising. Its services also include the “B-Space”e-commerce website operation support tool, and consolidated subsidiary Dynatech inc., which develops and provides information systems for accommodation facilities.
      During the second quarter of the fiscal year (cumulative), net sales increased year-on-year in “StoreMatch” pay-per-click advertising for stores in the online shopping mall due to increases in the amount spent on advertising placement and in the number of business operators (stores) using the service amid growing business operator focus toward e-commerce. On the other hand, for the STOREs R∞” CRM tool for stores in the online shopping mall, net sales decreased year-on-year because of the impact from diversifying advertising materials for online shopping malls and because of an increase in usage by stores with low rates of return.
      Also, amortization of goodwill and depreciation decreased due to the recording of impairment loss on assets related to Dynatech inc., whose customers are accommodation facilities, in the first quarter of the previous fiscal year. As a result, this segment attained net sales of ¥9,802 million (up 19.4% year on year) and segment operating income of ¥3,490 million (up 15.0% year on year).
  1. Analysis of financial positions

1. The status of assets, liabilities and net assets

Assets

At the end of the second quarter of the fiscal year, total assets amounted to ¥26,207 million, an increase of ¥2,270 million from the end of the previous fiscal year.

Current assets amounted to ¥24,203 million, an increase of ¥2,184 million from the end of the previous fiscal year. This was mainly due to an increase in cash and deposits of ¥3,045 million, despite a decrease in notes and accounts receivable – trade of ¥1,001 million.

Non-current assets amounted to ¥2,003 million, an increase of ¥86 million from the end of the previous fiscal year. This was mainly due to an increase in investment securities of ¥153 million, despite decreases in goodwill of ¥26 million and customer-related assets of ¥33 million.

Liabilities

At the end of the second quarter of the fiscal year, total liabilities amounted to ¥7,264 million, a decrease of ¥106 million from the end of the previous fiscal year.

Current liabilities amounted to ¥7,191 million, a decrease of ¥102 million from the end of the previous fiscal year. This was mainly due to a decrease in accounts payable – trade of ¥359 million, despite increases in accounts payable – other of ¥108 million, income taxes payable of ¥98 million, and other current liabilities of ¥55 million.

Non-current liabilities amounted to ¥72 million, a decrease of ¥3 million from the end of the previous fiscal year.

Net assets

At the end of the second quarter of the fiscal year, total net assets amounted to ¥18,943 million, an increase of ¥2,376 million from the end of the previous fiscal year. This was mainly due to an increase in recording of net income attributable to owners of parent of ¥3,129 million, despite a decrease in retained earnings of ¥840 million as a result of a dividend of surplus.

2. Cash flows

At the end of the second quarter of the fiscal year, the balance of cash and cash equivalents amounted to ¥18,544 million, an increase of ¥3,045 million from the end of the previous fiscal year.

The cash flows and their causes during the second quarter of the fiscal year (cumulative), are as follows.

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

ValueCommerce Co. Ltd. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 08:11:07 UTC.

Publicnow 2022

All news about VALUECOMMERCE CO., LTD.

Sales 2022 38 297 M
280 M
280 M
Net income 2022 6 345 M
46,4 M
46,4 M
Net cash 2022 17 247 M
126 M
126 M
P/E ratio 2022 15,8x
Yield 2022 1,89%
Capitalization 100 B
733 M
733 M
EV / Sales 2022 2,17x
EV / Sales 2023 1,89x
Nbr of Employees 380
Free-Float 45,0%

Chart VALUECOMMERCE CO., LTD.

Duration :
Auto.
2 months
3 months
6 months
9 months
1 year
2 years
5 years
10 years
Max.



Period :
Day
Week

ValueCommerce Co., Ltd. Technical Analysis Chart | MarketScreener

Technical analysis trends VALUECOMMERCE CO., LTD.

Short Term Mid-Term Long Term
Trends Bullish Bearish Bearish

Income Statement Evolution

Please enable JavaScript in your browser’s settings to use dynamic charts.

Sell

Buy

Mean consensus OUTPERFORM
Number of Analysts 4
Last Close Price 3 100,00 JPY
Average target price 4 507,50 JPY
Spread / Average Target 45,4%

Please enable JavaScript in your browser’s settings to use dynamic charts.

Related Articles

Leave a Reply

Back to top button
%d bloggers like this: