Kakaku.com Q1 FY2027: Revenue rises 17% but profit dips on tender-offer costs

Kakaku.com posted first-quarter revenue of ¥25.7 billion, up 17.0% from a year earlier, driven by a surge in Tabelog’s online reservation revenue and the consolidation of Engage in the HR segment. However, operating profit slipped 5.6% to ¥6.88 billion, and net profit attributable to shareholders decreased 6.3% to ¥4.69 billion. The decline was largely due to expenses for financial and legal advisors related to the tender offer for Kakaku.com’s shares. The newly introduced adjusted EBITDA stood at ¥8.96 billion, indicating solid underlying earnings power. Revenue up, but profit down on tender-offer costs sums up the quarter.

Kakaku.com operates four segments: Kakaku.com, Tabelog, HR, and Incubation. Segment results (after eliminations, in millions of yen) are as follows:

Kakaku.com revenue slid 5.4% to 5,518 million yen as a sharp 26.1% drop in the “Finance” category (credit cards and loans) and a 12.3% decline in “Services” offset modest gains in “Shopping” (+2.6%) and “Automotive” (+8.2%). Monthly unique users remained solid at 26.88 million, but the weak demand for high-margin financial advertising weighed on profits.

Tabelog delivered a standout performance, with revenue jumping 17.9% to 10,918 million yen and operating profit up 20.1% to 6,276 million yen. Online reservations soared 24.4% to 37.03 million customers, and the number of paid-plan restaurants rose to 102,800. Dining reservation revenue surged 27.3%, making online reservations the segment’s profit driver. Tabelog’s monthly users reached 90.49 million.

HR, which now includes the real estate HR firm Engage consolidated in April 2026, saw revenue leap 44.5% to 6,741 million yen. The legacy Kyujin Box business grew 14.2%, and Engage added 1,413 million yen. But integration costs and goodwill amortization pushed operating profit down 36.0% to just 228 million yen (3.4% margin). Scaling profitability in the expanded HR business remains a key challenge.

Incubation achieved strong growth, with revenue up 14.7% to 2,525 million yen and profit surging 44.6% to 565 million yen. “Travel & Mobility” grew 19.2%, and “Lifestyle” soared 78.7%, driven by services like LiPLUS and Bus Hikaku Navi. New businesses are entering the monetization phase.

Total assets rose ¥7.7 billion from the end of the previous fiscal year to ¥100.2 billion, primarily due to goodwill and intangible assets from the Engage acquisition (+¥7.497 billion) and higher cash holdings (+¥1.539 billion). Liabilities increased ¥7.891 billion to ¥35.196 billion, reflecting short-term borrowings of ¥4.5 billion and growth in other current liabilities. Shareholders’ equity remained nearly flat at ¥65.009 billion, with an equity ratio of 64.7%.

Operating cash flow fell to ¥3.564 billion (vs. ¥4.928 billion a year earlier) on lower pretax profit and tax payments. Investing cash flow stood at -¥1.182 billion, largely from the ¥4.944 billion outlay for Engage. Financing cash flow was -¥0.849 billion, as ¥4.932 billion in dividend payments was partially offset by the increase in short-term borrowings.

Notably, the company’s full-year dividend forecast for FY2027 is ¥0, compared with ¥50 per share in FY2026. The decision to suspend dividends appears aimed at preserving cash for growth investments and navigating the tender offer situation. The impact of the dividend suspension on shareholders will require close attention.

Key risks and challenges facing Kakaku.com include:

• Tender-offer uncertainty: The ongoing tender offer has already generated advisory costs and could affect management control, strategic direction, and future decision-making, with potential for additional expenses.
• HR segment profitability: While Engage is boosting revenue, integration costs and goodwill amortization will weigh on profit near-term. Shifting the segment to a high-margin model similar to Kyujin Box remains a work in progress.
• Kakaku.com’s financial category slump: Persistent weakness in credit card and loan advertising demand could further erode profits at the high-margin comparison-shopping business, which faces intensifying competition.
• Overreliance on Tabelog: Tabelog still contributes the bulk of group profit, making earnings vulnerable to restaurant industry cycles and regulatory risks.
• M&A execution risk: Following the Engage deal, further large acquisitions could lead to goodwill impairment or failure to achieve expected synergies.

For the fiscal year ending March 2027, Kakaku.com forecasts revenue of ¥114.5 billion (+21.6%), operating profit of ¥30.8 billion (+13.1%), and net profit attributable to shareholders of ¥20.7 billion (+10.1%). Adjusted EBITDA is projected at ¥36.0 billion. While first-half operating profit is expected to dip 1.0% to ¥13.7 billion, a second-half rebound is anticipated to drive full-year growth. The forecast, unchanged from the initial May 2026 guidance, reflects the full-year contribution from Engage and continued expansion at Tabelog. Double-digit full-year revenue and profit growth is the plan, hinging on these drivers.