Weathernews Inc. TSE:4825

Weathernews : Supplementary material on financial results for Q1 FY2024(English)

Published October 4, 2024 at 6:35 a.m. UTC

Source: MarketScreener

Financial Results for 202５.5 Q1

(ended August 31, 202４)

Weathernews Inc

October 4, 2024

2025.5 Q1 Results
- Summary of financial results
- Sales by Domain
- Sea Domain business and Internet Domain business
Summary of Financial plan
Stock split, Increase the dividend and Expansion of shareholder benefits
Topics ＆ Appendix

Decreased due to FOREX losses resulting from temporary yen appreciation.

１．2025.5 Q1 Results

Summary of financial results

【Net sales】 5,843 MJPY（+4.7％ Y/Y） Record high sales in Q1. Sea and Land domain drove sales growth.

【Operating profit】 455 MJPY (+9.6％ Y/Y） Improved operating efficiency and profit growth by strengthening the development system and development environment.

【Ordinary profit】

【Net profit】 Decreased due to the impact of recording tax effects related to the introduction of the mandatory retirement system in the previous fiscal year.

(Millions of Yen)	2024.5	2025.5	Y/Y
Q1 Actual	Q1 Actual


Net sales	5,580	5,843	+4.7%

Operating profit	415	455	+9.6%

Margin(%)	7.4	7.8	+0.4Pt

Ordinary profit	443	388	△12.5%

Profit attributable to	428	279	△34.7%
owners of parent


EPS (JPY)	38.9	25.3	△13.6JPY

FOREX Rates (USD/JPY)	142.5	154.2	+11.7JPY	3

１．2025.5 Q1 Results

Operating Profit Analysis (Y/Y)

Steady sales growth in stock-type business.
Decreased development outsourcing costs due to progress in in-house development system.
Personnel expenses increased due to strengthening overseas sales personnel and SaaS product development personnel, etc.
Flexible advertising investments in light of current weather conditions led sales promotion expenses increased this quarter compared to the previous quarter.

１．2025.5 Q1 Results

Sales by Domain

Millions	2024.５ Q1	2025.５ Q1	Y/Y	Business environment and results
of Yen	Actual	Actual	(%)


				・Although logistics disruptions due to the situation in the Middle East continued, cargo movements
Sea Domain	1,411	1,550	+9.9	remained steady due to the recovery of the global economy.
				・Our sales increased due to contract renewals with large customers, mainly in the European market, which
				involved higher unit prices, as well as the positive impact of FOREX rates.

				・In the airline market, domestic leisure demand and inbound demand due to JPY depreciation have been
Sky Domain	287	327	+14.1	favorable, leading to a recovery in passenger numbers.
				・Our sales to airline customers in Asia in particular have grown.

				・The need for weather information that takes into account regional characteristics in terms of disaster
				prevention during extreme weather events has increased, leading to the increase of the number of our
Land Domain	1,487	1,600	+7.6	customers, mainly in the expressway market.
				・In the energy and retail markets, in addition to conventional services, sales of WxTech services
				(SaaS-type products) have also expanded, resulting in increased revenue.

				・As the need for weather information increases against the backdrop of increasingly severe extreme
				weather and frequent meteorological disasters, continued investment in advertising, such as TV
Internet Domain	2,212	2,222	+0.5	commercials and online ads, has led to increased frequency of app use and an increase in the number of
app users.
				・Due to an improvement in the advertising market, subscription service sales and advertising revenue
				increased. However, sales to carriers continued to decrease.

Subscription Sales Total	5,398	5,701	+5.6	ー

Flow Sales	181	141	△22.1	・One-time sales from research and systems sales that will lead to future stock sales.
				・Comments omitted as this represents a small proportion of total sales.
Grand Total	5,580	5,843	+4.7	ー

１．2025.5 Q1 Results

Sea Domain business - 1

【Market conditions】

Although logistics disruptions due to the situation in the Middle East continued, cargo movement remained steady due to the recovery of the global economy.

【Performance】

Although the number of voyages offered was the same as the same period last year, revenue increased due to contract renewals with some large customers that involved higher unit prices and the effect of exchange rates.

１．2024.5 Results

Sea Domain business - 2

TAM of Sea planning business

(shown in Mid-term management plan)

Number of vessels using our services

(counts as one vessel even when using multiple services)

*DAU: Daily Active Users

１．2024.5 Results

Internet Domain business

Cumulative DAU increased due to TV commercials, increased usage during severe weather such as typhoons, and provision of content with high forecast accuracy.
Advertising and subscription sales increased due to a gradual recovery in advertising unit prices and an increase

in app users.

● Sales to mobile carriers decreased due to a fall in revenue share unit prices.

Effective from 2025.5 Q1, the composition of the sales graph has been subdivided into in-house subscriber and mobile carrier sales. In addition, some overseas sales that had been included in "Advertising" are now included in "Others".

Effective from 2025.5 Q1, the scope of aggregation of cumulative DAU has been changed in order to appropriately represent changes in the sales composition ratio and access to in-house content.

2．2025.5 Full-year Forecast

Summary of Financial plan

■ No change from initial plan

【Net sales】 23,500 MJPY（＋5.7％ Y/Y）

Plan to increase revenues through continued growth in Internet Domain, growth in Europe in Sea Domain, and expansion of SaaS business in Land Domain.

【Operating profit】 3,800 MJPY（＋16.2％ Y/Y）

Steadily promote the transformation to a more profitable structure and aim for record profits at all kinds of profits.

(Millions of Yen)	2024.5	2025.5	Y/Y
Actual	Forecast


Net sales	22,242	23,500	+5.7%

Operating profit	3,270	3,800	+16.2%

Margin (%)	14.7	16.2	+1.5Pt

Ordinary profit	3,341	3,800	13.7%

Profit attributable to	2,437	2,700	+10.8%
owners of parent


EPS (JPY)	221	244	+23.3JP
			Y

ROE (%)	12.8	13.3	+0.5Pt

FOREX Rates (USD/JPY)	147.9	150.0	+2.1JPY

2．2025.5 Full-year Forecast

Sales Forecast by Domain

(Millions of Yen)	2024.5	2025.5	Y/Y
		Domain	Actual	Forecast


		Sea	5,813	6,000	+3.2%

		Sky	1,210	1,260	+4.0%

		Land	6,301	6,740	+7.0%

		Internet	8,082	8,700	+7.6%

Subscription Sales Total	21,407	22,700	+6.0%

Others	835	800	△4.3%

Grand Total	22,242	23,500	+5.7%