Wedge Holdings Reports Second Half Loss Amid Legal Challenges

TOKYO, May 15 (Pulse News Wire) – Wedge Holdings CO.,LTD. (2388.T) reported a lower net profit of -¥285 million for the six months ended March 31, 2026, compared to a profit of ¥79 million in the same period last year.

Revenue increased by 12.8% to ¥1.829 billion due to robust performance in its content division, but higher operating costs led to a significant decline in profitability. The content division saw revenue grow by 12.8% to ¥1.829 billion, driven by strong contract wins and royalty income. However, operating expenses surged, resulting in a loss of -¥267 million, down from a profit of ¥94 million previously. The digital finance division also struggled, posting lower revenues and incurring investment losses amid ongoing legal disputes. Cash flow was negatively impacted, with cash and equivalents decreasing by ¥3 million to ¥13 million as of March 31, 2026. Operating activities used up ¥79 million, while investing activities consumed -¥285 million, primarily due to loan disbursements.

Legal challenges continued to weigh heavily on the company's finances. A lawsuit filed by JTrust Asia Pte. Ltd. against Group Lease PCL., a subsidiary involved in financing operations, resulted in multiple court dismissals but remains unresolved. Additionally, GL Finance PLC., another affiliate, faced license revocation and potential liquidation, adding further uncertainty to future earnings. Given the ongoing litigation risks and unpredictable nature of the content industry, Wedge Holdings decided not to release full-year forecasts for the fiscal year ending September 2026.

The company plans to focus on resolving legal issues and optimizing operational efficiency to improve long-term profitability.