Japan Weekly | Mitsubishi Motors, Mercari, Panasonic, Z Holdings

Mercari (4385) | Analysts Anchored to Outdated Views

Mercari (4385) | No Path to Profitability

Mercari (4385) | We Were Wrong…its Worse

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<ul>
<li>Domestic results were better than we expected driving operating income to its highest level in six quarters.  Management will launch credit card services to boost fintech exposure</li>
<li>The US business remains a drag on results with platform sales down 5% YoY and expanding operating losses. A downgrade to expectations is likely in the quarters ahead</li>
<li>Q1 results were better than we expected but a weak US business and higher spending ahead may disappoint markets that bid shares 28% higher over the last month</li>
</ul>


Domestic results were better than we expected driving operating income to its highest level in six quarters.  Management will launch credit card services to boost fintech exposure
The US business remains a drag on results with platform sales down 5% YoY and expanding operating losses. A downgrade to expectations is likely in the quarters ahead
Q1 results were better than we expected but a weak US business and higher spending ahead may disappoint markets that bid shares 28% higher over the last month


Mercari - Q1 23 Results Reaction: Strong Domestic Drives OP Beat but Spending to Rise