Hello, everyone. My name is Wada of Persol Holdings. Thank you very much for taking time out of your busy schedule to join us today. There are three points I would like to share with you today. The first is an overview of the first half results, and the second is an explanation of the placement market, which is a particular focus of our midterm management plan 2026, as well as the initiatives of Career SBU. The third is the interim dividend. The interim dividend is JPY 43, as forecasted, and the year-end dividend will be JPY 4.3. Since we have conducted a 10-for-1 stock split, we will pay out 50% of the adjusted EPS at the same level as the interim dividend. In the highlight, revenue was JPY 654.8 billion, and adjusted EBITDA was JPY 35 billion.
Gross profit was 6.8% year-on-year and is continuing to grow steadily. Although our performance is almost in line with the plan, we believe we have to closely monitor future market trends. In particular, the market is expected to change somewhat from the extremely prosperous market at and after the COVID-19 period. While closely monitoring these factors, we'll manage the entire company in the second half, including cost control. Details will be explained by Mr. Tokunaga, CFO. Please go ahead, Mr. Tokunaga. I'm Tokunaga, in charge of finance. I will now give you an overview of the financial results of the first half. First, let me give you an overview. The revenue increased 7.8% year-on-year to JPY 654.8 billion. The operating profit was JPY 26.3 billion, down 22% from the previous year.
Adjusted EBITDA, which we consider important, was down 19% to JPY 35 billion. Quarterly profit was JPY 16.7 billion, down 23%. As for the progress toward the full year forecast, the revenue is at 48%, and operating profit is at 48% as well. Next, I'd like to show you revenue by SBU. As you can see, BPO SBU saw a decline in revenue due to a large drop in COVID-19-related revenue, but the other SBUs achieved significant revenue growth. I will explain the details in another part of this presentation. Next, I'd like to show you operating profit by SBU. With the midterm management plan 2026, we have implemented a policy of spending strategic investment appropriately from the first quarter, so, the operating profit of Staffing SBU, BPO SBU, and Technology SBU decreased year-on-year.
However, the Career SBU, which is a main pillar of growth for this fiscal year, increased by 4.3%. In the Asia Pacific, with an increase of about 60%. Adjusted EBITDA by SBU is almost the same as that of operating profit, so, let me skip the explanation. Next is a forecast of operating profit in the second half. Last year, our strategy was to generate a large profit in the first half and make strategic investment in the second half. From the midterm management plan 2026, we are implementing strategic investment from the first quarter, aiming to achieve an almost unequal quarterly operating profit. In the second half, we are aiming to increase profit compared to the first half.
As for the Adjusted EBITDA, as was the case for the operating profit in the previous section, we are to make a steady profit in the second half. Next is analysis of the increase and decrease in operating profit compared to the first half of the previous year. First of all, gross profit increased by JPY 9.4 billion compared to the previous year. In particular, Career SBU achieved a large increase in gross profit of JPY 11.1 billion year-on-year. As for expenses, personal expenses, including investment in human capital, increased by JPY 10.6 billion, and advertisement expenses increased by JPY 4 billion. The following is the comparison of Adjusted EBITDA with the previous year.
In addition to the increase and decrease in operating profit, as I explained earlier, there was an increase in accrued paid leave and an adjustment for share-based payment expenses, but there were no major changes from the previous year. The following is the status of revenue by SBU for the first half. First, the overall progress was 48.9%. Next, I'd like to show you the status of operating profit and operating margin by SBU. Overall, the progress was 48.4%. The progress of Staffing SBU and Asia Pacific SBU exceeded 50%. On the other hand, the progress of BPO SBU and Technology SBU is slightly low in the first half, but due to the nature of the business, we expect to see an increase in profit in the second half. As for Career SBU, as Mr.
Wada mentioned earlier, progress in the first half was 44%, due in part to the business climate. In the second half, we would like to achieve an increase in profit by controlling costs. Next is adjusted EBITDA by SBU. It showed a similar progress as the operating profit mentioned earlier, so, I will omit the explanation. The following is the status of the balance sheet. The slide shows the status in September compared to the end of March, and there were no big changes. Looking at the liability section, we have repaid JPY 15 billion in both short-term and long-term borrowings. In addition, the equity increased by JPY 15.7 billion compared to the end of March. Regarding goodwill, there was a slight increase in Asia Pacific SBU due to the effect of exchange rates, but overall, there were no major changes.
Next, I'd like to explain the status of cash flow. Operating cash flow for the first half was JPY 40.8 billion, a significant increase. In addition, investment cash flow was -JPY 7.7 billion due to no business transfers or M&A in the first half, and free cash flow was JPY 33 billion compared to JPY 12.8 billion last year, which is a significant improvement. Next, I will give you an overview of financial results by SBU for the first half, as well as the current situation. First, our main business of Staffing SBU, the revenue increased by 7.4% year-on-year. As for Adjusted EBITDA, as shown in the lower left, it decreased by 6.3% due to changes in the social insurance system from last October and in the rate of premiums from this April.
But we believe other expenses were under control. Regarding current sales KPIs, the number of persons employed increased by 5.1% in the second quarter year-on-year, and the billing rates also increased by approximately 3%. Regarding the current sales performance, both the number of orders and confirmed contracts are slightly weak year-on-year. However, the number of contract terminations is improving, as you can see, and the number of persons employed was increased to 122,000. As part of Staffing SBU initiatives, we offer reskilling opportunities to our staff members, and we also offer finance-related services to help them achieve well-being. Due to time constraints, I will skip the details. The second SBU is BPO SBU.
As I explained at the beginning of this presentation, both revenue and adjusted EBITDA are negative, as in the first quarter, because of the drop in revenue due to COVID-19. On the other hand, the organic businesses other than the pandemic-related ones are performing well, with a 14.4% increase compared to the previous year. Let me briefly explain the major initiatives at BPO SBU. The top middle shows the Work Lab in Kobe, Myodani, that we opened in collaboration with the city of Kobe, and the bottom left shows the carbon neutrality initiatives that we are supporting for enthusiastic efforts made by various companies. The third SBU is Technology SBU, which is performing well with a 14% increase in revenue compared to the previous year. This SBU has three major KPIs, including the number of engineers, the operating rate, and billing rate.
As I explained at the announcement of the first quarter financial results, we hired 480 new graduates, and as of today, all of them have been assigned to their respective positions. As a result, the operating rate of the IT department improved to 85%, and operating rate of the engineering department has grown to 93.5%. We would like to further improve the operating rates to around 95% in the third and fourth quarters. As for the Technology SBU initiatives, we have already announced that we have established a joint venture called PERSOL and Serverworks. Together with Serverworks, a very leading AWS billing service provider, we are currently preparing for the launch of the service in April next year. We also exhibit the mobility system that we are involved in at Japan Mobility Show. The fourth SBU is Career SBU.
This SBU is the pillar of our growth in the current midterm management plan and this fiscal year. First, the revenue increased by 29%. We have announced a forecast of 30% for the full year, but for the first half, the revenue increased by 29%. Adjusted EBITDA increased by approximately 10% because we made strategic investments. Looking at the breakdown, the placement business increased by approximately 30%, and the job recruitment media increased by approximately 20%. While keeping a close eye on business conditions and controlling costs, we will control Career SBU in the second half of the year. As for the Career SBU initiatives, we believe that the shortage of IT engineers is a major issue in Japan, so we have formed business alliances with the other companies, and we are training IT engineers. The last SBU is Asia Pacific SBU.
We have increased revenue by 6% and Adjusted EBITDA by 15%. We disclosed the Asia Pacific SBU's midterm management plan in August last year ahead of time, and the performance is on track. Let me explain some details. Staffing, which accounts for about 60%, is now returning to the level of pre-COVID-19 in most countries, although there were some sluggish countries in Asia.... We have established a shared service center in Malaysia, where we are working to reduce costs. Our second business, facility management, which manages facilities at airports, waterworks, and schools, is also performing steadily, so, we are able to achieve an overall increase in both revenue and profit. This is a breakdown of revenue and operating profit of PERSOLKELLY and Programmed in Asia Pacific SBU.
The first half result of Programmed, who operates mainly in Australia and New Zealand, were JPY 2.8 billion, compared to JPY 1 billion in the first half of the previous year, so, we believe this business is favorably progressing. In Australia, we are in charge of facility management at Melbourne Airport, and this time, we are able to win an award. I would like to skip the details due to time constraints. Lastly, I will touch upon the status of others and adjustment which are not a part of any SBU. As for others, the R&D function unit increased its revenue, while adjusted EBITDA was almost flat. Regarding adjustment, as shown on the slide, inter-segment adjustments with SBUs increased, resulting in a large negative figure. But we believe that the actual increase in expenses is being controlled at around JPY 600 million-JPY 700 million.
This concludes my explanation about the overview of the first half of the fiscal year. Now, I'd like to explain about the placement business, the mid- to long-term strategy for Career SBU. First, let me talk about the market. We have been working on various initiatives for 2030, and we expect the placement market will continue to grow significantly toward 2030. In particular, we see this market growing at a CAGR of more than 9%, and we believe that it will continue to be very promising. Particularly, the growth of the high career group, which is highlighted in red, is expected to be greater than that of the other general employee group and executive group. We therefore see the market as increasing the number of job changes and the willingness to change jobs among this high career group.
As you can see on the next page, our specialty is in this volume zone, the general employee group. The annual salary range of JPY 4 million-JPY 6 million is the largest volume zone, and we have a wide coverage. On top of this, we are targeting the high career group, where the market will be growing, and so, we are working to grow this group as well. As you can see, we are now promoting doda X. In this domain, in particular, we are accumulating a solid database to create value in the future. We are proceeding with this. The next page describes how we will differentiate doda's strategy and our placement business from our competitors in leading them to success.
First, from the job seeker's point of view, doda offers a variety of services that, if used, will lead to employment, in other words, to finding a job. The first step is to join our community, and then you can receive training, coaching, and experience reskilling and upskilling through direct side jobs, or you can be approached directly by a recruiter. From the recruiting company's point of view, using media, direct recruiting, job placement services, or any other method, they want to hire good personnel that they wish to acquire. To increase such a hiring rate drastically, our approach and strategy are to provide a one-stop shop for both services within doda's one database. This is now working very well, and as I mentioned earlier, in Career SBU, we have achieved 29% growth. Next, I would like to move on to the dividend section.
As we implemented a 10-for-1 split of the common stock, this table is shown this way deliberately so, that you can see the comparison with the previous year. As I explained earlier, 50% Adjusted EPS will be used for dividends, and interim dividend of 43 JPY is shown in this chart. The reference level is 4.3 JPY, and year-end dividend will be 4.3 JPY after our 10-for-1 split. For the full year, we plan to pay a total of JPY 19.689 billion in dividends. And finally, I'd like to share with you the group topics. As I mentioned in the table 2 slides ago, doda’s initiatives are to support the reskilling and upskilling, which will be lead to a job change or other such activities in the future.
We have started a free skills and reskilling service for individuals based upon this concept. We have named this service PERSOL MIRAIZ. We are not only providing the infrastructure, but also various counseling services, and of course, support the continued learning, as well as companion service that will lead to a job change in the future. That's how we have started PERSOL MIRAIZ. Lastly, I think that reskilling is very important theme, and I recognize that it is also very important for Japanese companies to increase productivity in order to respond to this shortage of the human resources and lack of popularity, to improve individual skills and to allocate human resources to new businesses. We at PERSOL want to promote these initiatives to the market as well, and particularly, while we can provide opportunities directly through the placement business.
But in the stage prior to that, there are people who have actually taken on a side job or dual income job and have felt that their skills had improved and that they were able to reskill themselves. And we can present such data to the market and support better job changes or reskilling within the companies. Because we are working to become a career well-being creation company, we would like to continue promote efforts toward the realization of well-being through work, especially for those who are working. That is all from me.