Jaylease <7187> announced its consolidated financial results for the second quarter of the fiscal year ending in March 2025 (April-September 24). Revenue increased by 26.7% year-on-year to 7.711 billion yen, operating profit increased by 29.2% to 1.426 billion yen, ordinary profit increased by 28.0% to 1.414 billion yen, and net income attributable to parent company shareholders increased by 21.0% to 0.92 billion yen.

In the guarantee-related business, revenue increased by 19.0% year-on-year to 7.161 billion yen, while operating profit increased by 36.2% to 1.515 billion yen. On the sales front, rental guarantee for residential properties significantly exceeded the plan. Various strategies such as human resource investment in the greater Tokyo area, talent development, alliances with external companies and industry organizations have paid off, leading to expanded new trades. The company also expanded its strength in providing region-based services and opened Toyama and Shiga branches in July 2024. Business rental guarantee saw steady sales amidst frequent turnover during the coronavirus pandemic and post-pandemic period, as well as increased competition from other companies. In terms of expenses, administrative fees for real estate agencies increased due to intensifying competition, along with rising bad debt-related expenses. To continue appropriate risk control through credit screening and debt management, the company followed its plan for human resource recruitment. In the medical cost guarantee business, efforts in sales expansion and business strengthening led to increased new deals with public hospitals and Red Cross hospitals.

In the real estate-related business, revenue increased by 2.7% to 0.074 billion yen, while operating loss amounted to 0.033 billion yen (compared to a loss of 0.008 billion yen in the previous year). In real estate brokerage, management, and leasing services, the company primarily focuses on services for foreign nationals. The increased demand from foreigners for Japanese real estate due to factors like the weakening yen led to a rise in brokerage transactions. The newly opened Tokyo branch continued to strengthen its sales efforts, making good progress towards achieving the full-year plan.

In the IT-related business, revenue was 0.541 billion yen, with an operating loss of 0.047 billion yen. At Avis, which engages in software development and other IT services, the sales and operating profit exceeded the plan, driven by the development and sale of environmental inspection systems and other IT services.

The consolidated performance forecast for the full year of the 2025 March period is based on the initial plan of 16.21 billion yen in sales, up 22.6% from the previous year, operating profit of 2.81 billion yen, up 7.8% year-on-year, ordinary profit of 2.81 billion yen, up 7.6% year-on-year, and net income attributable to parent company shareholders of 1.89 billion yen, up 5.6% year-on-year.