Japanese IT services provider Tenda reported robust first-quarter results, with net profit surging 94.4% year-on-year to 150 million yen ($1 million) for the three months ended August. The company’s performance was driven by its DX Solutions business, which saw continued strong demand from large clients.
Tenda’s consolidated sales climbed 43.4% to 1.535 billion yen ($10.2 million), while operating profit rose 57.4% to 190 million yen ($1.3 million). The DX Solutions segment, accounting for the bulk of revenue, grew 41.3% to 1.053 billion yen ($7 million), benefiting from recent acquisitions including Leesa Consulting.
However, the company faced headwinds in its other segments. The Techwise Consulting business saw flat sales and a 7.7% drop in profit due to restructuring costs. The Game Contents division, despite more than doubling sales, experienced a 21.1% profit decline following the loss of a major publishing contract.
Despite these mixed results, Tenda maintained its full-year forecast, projecting a 15.9% increase in sales to 6 billion yen ($40 million) and a 17.3% rise in net profit to 400 million yen ($2.7 million) for the fiscal year ending May 2025.
