CAICA DIGITAL announced its consolidated financial results for the second quarter ending October 2024. The company reported sales of 2.866 billion yen, marking a 5.2% increase from the same period last year. The operating loss significantly improved to 196 million yen from the 1.397 billion yen loss recorded in the previous year. Similarly, the ordinary loss narrowed to 320 million yen from 1.534 billion yen, and the net loss reduced to 425 million yen from 1.35 billion yen.
Financial Performance:
- Sales: 2.866 billion yen (up 5.2% year-on-year)
- Operating loss: 196 million yen (improved from a 1.397 billion yen loss)
- Ordinary loss: 320 million yen (improved from a 1.534 billion yen loss)
- Net loss: 425 million yen (improved from a 1.35 billion yen loss)
The financial services business recorded a valuation loss of 273 million yen on crypto assets (Kaika Coin) held as cost of sales. However, the IT services business, CAICA Technologies, performed well, contributing to the increase in sales.
In terms of profits, while EWJ incurred one-time expenses related to remaining operations after business discontinuation, the consolidated operating loss improved significantly. This improvement was due to reduced selling, general, and administrative expenses following the sale of a cryptocurrency-related subsidiary and the discontinuation of EWJ’s business.
Non-Operating and Extraordinary Losses:
- Non-operating expenses: 131 million yen, including an investment partnership operating loss of 84 million yen.
- Extraordinary loss: 108 million yen due to valuation losses on investment securities.
Business Outlook for FY2024:
CAICA DIGITAL is optimistic about its future financial performance for the fiscal year ending October 2024. The company projects:
- Sales: 6.302 billion yen (up 21.9% year-on-year)
- Operating profit: 169 million yen (compared to a loss of 2.378 billion yen in the previous year)
- Ordinary profit: 162 million yen (compared to a loss of 2.56 billion yen in the previous year)
- Net profit: 137 million yen (compared to a loss of 3.889 billion yen in the previous year)
- EPS: 1.11 yen
The forecasted turnaround reflects CAICA DIGITAL’s strategic efforts to streamline operations and enhance profitability across its business segments. The company’s focus on growth and efficiency indicates a promising outlook for the remainder of the fiscal year.
