By Kosaku Narioka
Hakuhodo DY Holdings shares fell sharply after the Japanese advertising company posted a first-half loss and lowered its full-year earnings forecasts, citing weaker business in North America.
The shares were recently 8.9% lower at 1,167.5 yen after falling as much as 12% earlier Tuesday morning.
Hakuhodo said Monday after market close that it booked net loss of Y10.87 billion ($71.6 million) for the six months ended Sept. 30, compared with Y11.71 billion net profit in the year-earlier period.
Higher expenses and weaker earnings in North America weighed on the company’s bottom line, as did continued strategic investments at home.
Hakuhodo also booked bigger special losses, including Y3.76 billion valuation losses from marketable securities. First-half revenue dropped 4.7% from a year earlier to Y399.56 billion.
Hakuhodo cut its earnings forecasts for the fiscal year ending March 2024. It now projects net profit to drop 55% to Y14.00 billion, down from Y27.00 billion previously expected.
Write to Kosaku Narioka at [email protected]
Read the full article here
