Daily News

View All News

Japan – Increased costs dampen Creek & River’s Q1 net income

02 July 2015

Japanese staffing firm Creek & River (4763: JP) reported revenue for the first quarter ending 31 May 2015 of JPY 6.4 billion (USD 51.9 million), an increase of 4.6% compared with JPY 6.1 billion (USD 49.6 million) during the same quarter last year. 

  Q1 2015 Q1 2014 Change
Revenue JPY 6,369 million JPY 6,092 million +4.6%
USD 51.9 million USD 49.6 million
Gross Profit JPY 2,157 million JPY 2,029 million +6.3%
USD 17.6 million USD 16.5 million
Net Income JPY 245 million JPY 349 million -29.8%
USD 2 million USD 2.8 million

The company reported an increase of 17% in sales, general, and administrative expenses in Q1 2015, compared with a year ago.

Creek & River provides business agency, production, outsourcing, and consultation services in Japan, China, and Korea. It offers temporary staffing and employment placement services for the Creative sector; mainly for film/TV, game programming, and advertising industries. The company also provides medical staffing services.

Revenue by business segment was broken down as follows:

  Q1 2015 Q1 2014 Change
Creative Japan JPY 3,830 million JPY 3,507 million +9.2%
USD 31.2 million USD 28.6 million
Creative Korea JPY 968 million JPY 822 million +17.8%
USD 7.9 million USD 6.7 million
Medical Services JPY 895 million JPY 887 million +0.9%
USD 7.3 million USD 7.2 million
Other JPY 676 million JPY 876 million -22.8%
USD 5.5 million USD 7.1 million

The “Other” segment relates to the company’s IT, legal, and accountancy business.

In trading today, the company’s share price closed down 1.6% at JPY 620 (USD 5.05), an increase of 43.6% compared with a year ago. Based on its current share price, the company has a market value of JPY 14 billion (USD 114 million).