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Creek & River Reports Q1 Financial Results, Plans for Growth Despite Profit Decline

First Quarter Sees Modest Sales Increase Amid Significant Profit Decrease; Company Remains Optimistic for FY 2025
Japan
c 4763.TSE
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Creek & River Company announced its consolidated financial results for the first quarter of the fiscal year ending February 2025, revealing a mixed performance. The company reported sales of 12.854 billion yen, marking a slight increase of 0.8% from the same period last year. However, operating profit fell by 20.2% to 1.261 billion yen, ordinary profit decreased by 19.9% to 1.277 billion yen, and net profit dropped by 17.7% to 860 million yen.

The decline in profits was attributed to several factors, including reduced project volumes from major game publishers and delays in finalizing contracts for recruitment referral services. Despite these setbacks, Creek & River had anticipated a lower profit margin for the first quarter due to strategic investments, including the hiring of a record number of new graduates and development costs for original content slated for release later in the year.

Looking ahead, Creek & River maintains a positive outlook for the fiscal year ending February 2025. The company forecasts sales of 55 billion yen, a 10.4% increase from the previous fiscal year. Additionally, operating profit is expected to rise by 17.0% to 4.8 billion yen, ordinary profit by 16.0% to 4.8 billion yen, and net profit by 16.6% to 3.1 billion yen, with an EPS of 140.93 yen.

The company’s progress against its annual targets is promising, with sales achieving 23.4% of the annual plan, operating profit at 26.3%, ordinary profit at 26.6%, and net profit at 27.7%. This indicates a solid foundation for achieving its full-year objectives.

Despite the first quarter’s profit declines, Creek & River’s strategic investments and optimistic forecasts suggest a robust plan for recovery and growth, driven by anticipated returns from new content and an expanded workforce.

 

 

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