On the 14th, Scalar <4845> announced its consolidated financial results for the first quarter of the fiscal year ending June 2025 (July-September 2024) based on IFRS. The revenue based on Non-GAAP indicators decreased by 4.3% year-on-year to 2.226 billion yen, with an operating loss of 0.014 billion yen (compared to a loss of 0.057 billion yen in the same period last year), a pre-tax loss of 0.025 billion yen (compared to a loss of 0.069 billion yen in the same period last year), and a quarterly loss attributable to owners of the parent company of 0.032 billion yen (compared to a loss of 0.055 billion yen in the same period last year).

Revenue from the DX business decreased by 2.3% year-on-year to 1.11 billion yen. Overall in the DX business, although revenue slightly decreased compared to the same period last year, the progress in the introduction of existing and new services was generally as expected. On the other hand, as a result of resource optimization, productivity improvement, and cost reduction through business structural reforms such as the merger of Scalar Communications and Scalar Partners, profits increased compared to the same period last year.

Revenue from the human resources business decreased by 27.8% year-on-year to 0.189 billion yen. Due to the early start of job searching activities and a temporary shortage of career advisor resources, the success rate of personnel introductions decreased in this period.

Revenue from the EC business decreased by 3.5% year-on-year to 0.562 billion yen. The impact of a temporary boom in certain titles that had been thriving in the previous period due to favorable external conditions and the continuous promotion of system renovations and improvements, as well as the active introduction of the latest technology, resulted in a decrease in revenue and profit compared to the same period last year.

Revenue from the financial business increased by 2.3% year-on-year to 0.309 billion yen. Enhanced promotional activities for the new product "Dog and Cat Insurance Next/Light/Mini" launched in February, as well as marketing measures such as website and landing page renovations, have succeeded in steadily increasing the number of contracts held, and the contract ratio for new products has also increased.

Revenue from the incubation business increased by 30.9% year-on-year to 0.054 billion yen. Despite the increase in upfront costs such as development and personnel expenses aimed at growth, along with the recognition of evaluation losses on investment securities, the active efforts in new businesses gradually expanded the revenue scale, resulting in an increase in revenue and profit compared to the same period last year.

The full-year consolidated performance forecast for the fiscal year ending June 2025 based on IFRS remains unchanged, projecting revenue to decrease by 5.7% compared to the previous period to 10.1 billion yen, operating profit of 0.55 billion yen, pre-tax profit of 0.54 billion yen, and profit attributable to owners of the parent company for the current period of 0.34 billion yen.