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In the third quarter, ended December 31, 2007, the Benesse Corporation Group posted year-on-year growth in both sales and earnings. The top-line growth mainly reflected higher sales in the core Education Group, as well as the Language Company and the Senior Company. Meanwhile, earnings growth was the result of further cost-cutting in the AVIVA Business and other factors.

Compared to the same period a year earlier, consolidated third-quarter net sales increased 7.4%, or 19,508 million yen, to 283,455 yen million. This reflected a number of factors, which included making Tokyo Individualized Educational Institute, Inc. (TKG) a consolidated subsidiary in June 2007; an increase in the number of lessons taken at Berlitz International, Inc., particularly in Japan and Germany; and a strong performance at ELS Language Centers, which offer English instruction for students aiming to study overseas. An additional contributor to overall sales growth was an increase in resident numbers at nursing homes for the elderly operated by Benesse Style Care Co., Ltd. These positive factors compensated for a drop in sales due to falling student numbers in Benesse's correspondence course operations, the mainstay of its education business.

Profits rose on a consolidated basis compared to the previous third quarter thanks to the higher sales at Berlitz International, cost savings at AVIVA Co., Ltd. following management reforms, and other factors. This was despite lower profits due to decreasing sales in the correspondence course business. Operating income rose 3.8%, or 1,311 million yen, to 36,002 million yen, ordinary income increased 4.5%, or 1,596 million yen, to 37,123 million yen, and net income rose 1.4%, or 275 million yen, to 19,909 million yen.

Financial Report