Hakuhodo DY Holdings, a Japanese advertising company, experienced a significant drop in shares following the announcement of a first-half loss and a downward revision of its full-year earnings forecasts. The company attributed this decline to weaker business performance in North America.
At present, the shares are down by 8.9% at 1,167.5 yen, with an earlier decrease of as much as 12% earlier today.
In its post-market close update on Monday, Hakuhodo revealed that it recorded a net loss of Y10.87 billion ($71.6 million) for the six months ending September 30. This starkly contrasts with the previous year's net profit of Y11.71 billion during the same period.
The negative impact on the company's bottom line can be attributed to higher expenses and weaker earnings in North America. Additionally, strategic investments domestically have further burdened the company's financial performance.
Furthermore, Hakuhodo incurred larger special losses in the first half, including Y3.76 billion in valuation losses from marketable securities. The company also witnessed a 4.7% decline in first-half revenue from the previous year, amounting to Y399.56 billion.
As a result of these developments, Hakuhodo has revised its earnings forecasts for the fiscal year ending March 2024. The new projection expects a 55% drop in net profit to Y14.00 billion, down significantly from the previously estimated Y27.00 billion.
