While continuing to invest strategically to grow in Enterprise Business,
Record-High Sales and Operating Income for Q3 nine months
In this FY2022, triggered by the formation of AGEST, Inc. ("AGEST") as the core company of Enterprise Business, we have started to invest aggressively to build a solid foundation for businesses for its further growth. Specifically, in order to expand the human capital of engineers as an essential part for businesses growth, we have strengthened AGEST’s recruitment team and established new office to provide a comfortable working environment with our engineers. In addition, the Group focused on raising AGEST awareness and establishing a "tech" brand by holding regularly IT seminars, strengthening exposure to the media, and disseminating information through the owned media "Sqripts,” newly launched in December. Through these strategic investments, we have steadily strengthened our human capital to support growth, including high-skill engineers and talented sales managers. We have also developed solutions and improved operations by leveraging the specialized knowledge and broad-ranging experience of these new human resources. In these ways, we have made significant progress in establishing "next-generation QA (Quality Assurance) solutions" to support our clients in such DX era.
In Entertainment Business, the Domestic debugging continued to grow strongly as a leading company. We also promoted initiatives to expand businesses in global areas, where is considerable room for growth, such as strengthening the cross-border services in South Korea.
As a result, net sales for the Q3 nine months grew significantly to 26,879 million yen (YoY 126.5%). This was due to the fact that Enterprise Business continued to grow at a high rate of YoY 1.5 times, partly due to the effects of M&A, and that Entertainment Business also achieved double-digit sales growth. Though SG&A expenses increased due to strategic investments made in Enterprise Business, operating income increased YoY 100.8% to 2,140 million yen, due to the contribution of the sales growth of high-margin Entertainment Business.
In FY2022 Q4, we aim to achieve its full year targets by maintaining high levels of sales and profitability in Entertainment Business, while expanding sales and improving profitability in Enterprise Business by realizing the benefits of strategical investments.
We look forward to the continued support of our shareholder.
February 9, 2023
President and CEO Yasumasa Ninomiya