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Septeni Holdings Earnings Exceed Estimates in FY9/10 -- FY9/11 Estimates Call for Continued Growth

TOKYO, Nov 12, 2010 (BUSINESS WIRE) -- Septeni Holdings (JASDAQ, 4293), a leading Japanese Internet advertising and related services company, achieved earnings that surpassed its estimates for the fiscal year September 2010 despite weak employment conditions, a stronger yen, and uncertainties surrounding both corporate earnings and the overall economy. And while consolidated net sales fell by 1.2% year-over-year to JPY32.648 billion, operating and ordinary incomes managed to grow by 83.4% and 142.8% year-over-year to JPY1.098 billion and JPY1.024 billion respectively on improvements in gross profitability and reductions in sales, general and administrative costs. Net income also recovered to JPY545 million from losses recorded in the previous year.

Septeni Holdings (4293) FY9/08 FY9/09 FY9/10 yy chg FY9/11E yy chg Net Sales 30,700 33,046 32,648 -1.2% 35,000 7.2% Operating Income 1,125 598 1,098 83.4% 1,200 9.3% Margin 3.7% 1.8% 3.4% na 3.4% na Ordinary Income 1,010 421 1,024 142.8% 1,150 12.3% Net Income 563 -585 545 na 700 28.3% Earnings Per Share 4,454.13 -4,507.28 4,333.90 na 5,565.41 28.4% Total Assets 13,482 11,911 12,371 3.9% na na Net Assets 6,788 5,770 6,079 5.4% na na Equity Ratio 44.6% 44.0% 45.3% na na na Book Value Per Share 45,528.87 41,098.01 44,606.39 8.5% na na Dividend Per Share 800.00 900.00 1,000.00 11.1% 1,000.00 0.0% (mn yen, yen per share) Septeni's Internet Advertising division sales and operating income rose by 1.9% and 28.1% year-over-year to JPY27.387 billion and JPY1.146 billion respectively due to a bottoming and subsequent improvement in the Internet advertising market.

Sales of the Internet Related Business division fell by 20.1% year-over-year to JPY2.054 billion due in part to declines in the number of subscribers to existing contents and despite efforts to create new contents. At the same time Septeni's successful efforts to reduce costs allowed operating income to grow by 261% year-over-year to JPY166 million.

In the Direct Marketing division, weak market conditions led to 2.7% and 5.1% year-over-year declines in both sales and operating income to JPY2.242 billion and JPY184 million respectively. Sales of the other business division also fell by 26.9% year-over-year to JPY1.097 billion, while operating losses fell to JPY60 million from the JPY210 million loss seen in the previous term.

During the fiscal year September 2010, current assets grew by JPY682 million to JPY10.176 billion on the back of a JPY856 million increase in cash and equivalents, while fixed assets declined by JPY221 million to JPY2.195 billion.

Therefore total assets grew by JPY460 million to JPY12.371 billion. Increases in short term debt and unpaid corporate taxes contributed to a JPY320 million rise in current liabilities to JPY6.09 billion, while declines in leases and long term debt allowed fixed liabilities to fall by JPY169 million to JPY201 million.

Consequently total liabilities grew by JPY150 million to JPY6.291 billion. Net assets grew by JPY309 million to JPY6.079 billion.

In the fiscal year to September 2011 Septeni Holdings calls for sales, operating income and net incomes to rise by 7.2%, 9.3%, and 28.3% year-over-year to JPY35 billion, JPY1.2 billion, and JPY700 million respectively Septeni Holdings consists of a group of companies conducting various unique businesses in their respective specialized fields including technology and media content, with a central focus upon the Internet advertising agency business. The Septeni Group provides comprehensive e-marketing support services through cooperation and collaboration with all of its group companies.

SOURCE: Septeni Holdings CONTACT: Kaoru Hosaka for information regarding Septeni Holdings Investment Bridge Co., ltd +81-3-5842-5765 (Japanese correspondence only) mailto: septeni@cyber-ir.co.jp (English and Japanese correspondence) Copyright Business Wire 2010 -0- KEYWORD: Japan

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