GigWorks <2375> announced its consolidated financial results for the second quarter of the fiscal year ending October 2024 (November 23-April 24). Sales decreased 3.8% year on year to 13.041 billion yen, operating profit increased 564.7% to 184 million yen, ordinary profit increased 449.7% to 180 million yen, and net profit attributable to the parent company's shareholders for the quarter increased 67.6% to 65 million yen.
Sales of the on-demand economy business decreased 6.5% year on year to 5.636 billion yen, and segment profit increased 22.4% to 475 million yen. The company has a large number of registered individual business owners and freelancers in its group, and during the cumulative period of the second quarter of this fiscal year, 3,404 unique workers worked nationwide in Japan. In the field service, we captured demand in non-IT areas where stable revenue can be expected, such as investigation work, instead of Corona-related work in the same period of the previous year, and while sales declined, profits were maintained at the same level as the previous year. Construction, which performs communication infrastructure base station construction, operated mainly in EV charger construction and IT equipment maintenance services. In addition, our own contact center is managed in seven locations centered on Tokyo, Osaka, and Fukuoka. It continued to operate at a high level, and technical support and mail-order related orders expanded, replacing Corona-related business in the same period of the previous year, and profits remained the same as the previous year despite the decrease in revenue. In addition, the sales of SNAPIT, an app that earns money by taking photos in the WEB3 area also contributed to the segment profit of this business, pushing it up.
Sales of the digital marketing business decreased 11.4% to 2.87 billion yen, and the segment loss was 45 million yen (compared to a loss of 74 million yen in the same period of the previous year). The company provides services mainly for comprehensive mail-order sales with Japan Direct Sales and Yuyu Life brands, and more than 14.85 million customers have used it based on the track record of comprehensive communication sales for over 45 years since its founding. We have commercialized and sold optimal "assistance services" tailored to each individual customer, such as "visiting service" and "delivery service" utilizing the field service strength of GigWorkers and the communication strength of the contact center. In order to strengthen revenue, we reexamined marketing strategies that suit the consumer needs of senior citizens and aimed to maximize advertising effectiveness. In addition, we have been working to improve the revenue structure, such as centralizing purchasing of the two brands and reviewing the personnel structure. From this fiscal year, we started a premium membership system, and the number of members has exceeded 2,000 members in half a year and is steadily increasing.
Sales of the system solution business decreased 3.0% to 2.432 billion yen, and segment profit decreased 5.1% to 340 million yen. Orders for our in-house developed CRM system "DECOR CC.CRM3" are increasing due to tool development utilizing AI and addition of functions to strengthen the product lineup. In addition, contracted development work and system engineering services are improving sales by enhancing collaboration with business partners including GigWorkers.
Sales of the sharing economy business increased 28.5% to 2.602 billion yen, and segment profit was 231 million yen (compared to a loss of 104 million yen in the same period of the previous year). The shared office operated by the company has an office network of 1,032 locations nationwide (as of June 5, 2024) including 87 directly managed stores (as of the end of April 2024) mainly in the Tokyo metropolitan area. The number of member using shared offices has reached 17,100, providing users with low-cost and high-quality workplaces. We have been working to further improve convenience, such as enabling the service of shared offices and satellite offices to be selected for multi-locations. Following the abolition of the unprofitable service in the previous fiscal year, we renewed and improved our service this fiscal year. In addition, we have been focusing on profit-oriented operation that prioritizes the improvement of existing store performance, as we are refraining from opening new store of shared office directly managed store this term, and achieved significant improvement in earnings. Nex, the shared salon brand where GigWorker stylists are active, has four stores in Minami-Aoyama, and business is doing well thanks to favorable reviews from customers.
For the fiscal year ending in October 2024, the consolidated financial estimates show a decrease of 7.7% in revenue compared to the previous year, at 24.4 billion yen. Operating profit is expected to increase by 84.6% to 205 million yen, while ordinary profit is expected to increase by 79.8% to 200 million yen. The net income attributable to shareholders of the parent company is expected to remain the same as the initial plan, at 85 million yen.