Sparks Group ＜8739＞ announced consolidated financial results for the fiscal year ending 2024/3 on the 7th. Operating revenue increased 23.5% from the previous fiscal year to 16.498 billion yen, operating profit increased 31.1% to 7.476 billion yen, ordinary profit increased 28.6% to 8.090 billion yen, and net income attributable to parent company shareholders increased 44.2% to 6.519 billion yen.
The Group's balance of assets under management at the end of the year was 1,889.3 billion yen, up 25.9% from the end of the previous fiscal year. Balance rewards for the current year were 14.258 billion yen, up 12.0% from the same period last year. Success fees increased 463.8% from the same period to 2,054 billion yen, and operating revenue increased. Operating expenses and general administrative expenses increased 17.8% from the same period to 9.022 billion yen. This is mainly due to an increase in payment fees and an increase in labor costs associated with an increase in asset management balances of public offering investment trusts, while administrative outsourcing costs have decreased. As a result of these, operating income and ordinary income increased. Also, profit from the sale of investment securities was recorded at 1,335 billion yen, and as a result of recording corporate taxes, etc., net income attributable to parent company shareholders increased. Note, basic income (amount obtained by deducting ordinary expenses from the amount of balance remuneration that occurs on a regular basis), which is an indicator showing profitability that is a sustainable and stable foundation for business, increased 5.7% from the same period to 6.348 billion yen due to an increase in balance compensation exceeding that, and hit a record high.
Regarding the consolidated earnings forecast for the fiscal year ending 2025/3, the investment trust investment advisory business, which is the Group's main business, is in a situation where business results are greatly affected by the economic situation and market environment, so we recognize that future earnings forecasts are difficult. Note that, as a general rule, the balance of assets under management, which is one of the Group's important management indicators, is separately disclosed within the first 5 business days of each month.