Freebit <3843> announced its consolidated financial results for the second quarter of the fiscal year ending April 2025 (May - October 2024) on the 13th. Revenue reached 26.622 billion yen, operating profit was 3.024 billion yen, ordinary profit stood at 3.076 billion yen, and net income attributable to parent company shareholders was 1.768 billion yen. In the previous consolidated fiscal year, its consolidated subsidiary Gigaprize and its subsidiary changed their closing date from March 31 to April 30, and since the previous interim consolidated accounting period was a transitional period due to the change, the year-on-year interim percentage change is not recorded.

The revenue from the 5G infrastructure support business increased by 4.9% year-on-year to 5.166 billion yen, while segment profit declined by 27.4% to 0.689 billion yen. In the fixed line network, the continued increase in the use of various services via the Internet has continued to raise network production costs. In the mobile network, demand for IoT and inbound services is expected to increase, indicating ongoing growth in the overall mobile market, which is expected to expand further. Under these circumstances, while the scale of business support services for Mobile Virtual Network Operators (MVNO) as a Mobile Virtual Network Enabler (MVNE) has steadily progressed, costs related to improving communication quality and personnel expenses have increased.

The 5G lifestyle support business reported revenue of 12.619 billion yen and segment profit of 1.637 billion yen, primarily due to the steady increase in the number of service subscriptions for 5G Homestyle (Internet services for collective residences). In 5G Homestyle, services such as Internet for collective residences and rental homes, as well as security-related services like security and surveillance cloud camera services, have expanded their offerings to strengthen the revenue base. Gigaprize, which provides 5G Homestyle, made an investment in NHN Icamera, established by NHN JAPAN, aiming for improved service quality and enhanced competitiveness in light of expanding IoT solution services such as cloud camera services, and further strengthened its system for expanding its share and entering new markets like restaurants and nursing facilities. In 5G Lifestyle (mobile communication services and Internet-related services for individuals), the technology and services cultivated through the company's group smart phone service 'Tone Mobile' are being expanded to other smartphones and a wide variety of devices, adhering to the 'TONE IN' strategy which seeks to branch out into other fields such as IoT, expanding the targeted smartphone models to 160 and promoting further user growth. The year-on-year percentage change is not recorded due to the change in the closing date of consolidated subsidiary Gigaprize and its subsidiaries.

The revenue from the enterprise and creator 5G DX support business increased by 2.8% year-on-year to 10.075 billion yen, while segment profit increased by 64.5% to 0.709 billion yen. In the internet marketing and ad technology services provided by the consolidated subsidiary Full Speed and its subsidiaries, the accelerating digital measures due to the diversification of society and work styles triggered by the COVID-19 pandemic have continued to increase advertising demand. In such an environment, the demand within the affiliate business of ad technology services has shown strong progress both domestically and internationally, with implementation of cost reduction measures resulting in more efficient business operations. Furthermore, the number of provided services for the 'StandAlone' creator platform aimed at forming fan communities and expanding the creator economy (a realm where creators monetize their skills) has also grown. Additionally, Full Speed's subsidiary Forit acquired a majority of the stocks issued by YOYO Holdings Pte.Ltd., which provides an influencer platform 'PopStar' focusing on Southeast Asia, through its wholly owned subsidiary based in Malaysia, FORIT DIGITAL SDN.BHD., as of September 3, 2024, thereby becoming a subsidiary. Through this acquisition, early entry into growth markets and substantial strengthening of its positioning within the performance marketing and influencer marketing markets in the ASEAN region is expected.

The consolidated full-year financial forecasts for the fiscal year ending April 2025 maintain the initial plans of 54 billion yen in revenue, 5.7 billion yen in operating profit, 5.5 billion yen in ordinary profit, and 3 billion yen in net income attributable to parent company shareholders.