Fujitsu Ltd (FJTSF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I would like to provide you with a briefing on FI25 first quarter financial results. Please turn to slide 3. Slide 3 shows an overview of our results for the first quarter. Service Solutions, one of our most important segments, got a solid start to fiscal 2025, with higher revenue and profit. Revenue in the first quarter was 514.6 billion yen, up 2.6% from the previous year. For business in Japan, there was continued growth in demand for digital transformation and modernization, and revenue was up 6%. Adjusted operating profit was 47.8 billion yen, up 12.8 billion yen from the previous year, a 37% increase. In addition to higher revenue, there was also progress in improving profitability. The adjusted operating profit margin was 9.3%, up 2.3 percentage points from the prior year. In the lower box, consolidated total revenue was 749.8 billion yen. Consolidated revenue declined by 1.2% because of the impact of exchange rate fluctuations and due to a change in revenue reporting standards in a portion of the hardware solutions business in Europe. Adjusted operating profit was 35.1 billion yen, up 18.5 billion yen from the prior year, a 112% increase. The adjusted operating profit margin was 4.7%, an improvement of 2.5 percentage points from the prior year. Each business segment posted higher profits, and adjusted operating profit was a new record level for the first quarter. At the very bottom, profit for the period was 171.7 billion yen. In addition to profit from operations, we recorded a gain on the sale of shares in Shinko Electric Industries, a discontinued operation. Page 4 shows consolidated profit and losses. In continuing operations, profitability improved, mainly in our core segment service solutions. In addition, in discontinued operations, we recorded a gain ...