IIJ Q2 profit surges 37% on revenue growth

12 Nov 2007

Japan-based internet connectivity and system integration solutions provider Internet Initiative Japan (IIJ) has reported a strong climb in second quarter profits, thanks in the main to a surge in revenue growth from internet connectivity and value added services (VAS), the company said in a statement. IIJ also maintained its full year 2007 guidance. The Tokyo-headquartered firm saw a 37.1 year-on-year rise in net profit to JPY2.91 billion (USD25.3 million) in the three months ended 30 September 2007, up from JPY2.12 billion a year ago. Second-quarter revenue climbed 16.3% in the same period from JPY14.01 billion to JPY16.29 billion, driven by internet connectivity and VAS which contributed JPY7.94 billion in the period under review, up 28.9% from JPY6.16 billion in the prior-year quarter. Systems integration revenues in the quarter rose 10.3% to JPY7.97 billion, while equipment sales revenues were JPY391 million, down 37.9% year-on-year. Operating income for the fiscal second-quarter was JPY1.13 billion (up 38.6%), while adjusted EBITDA rose 23.1% to JPY2.32 billion from JPY1.88 billion in 2Q06.

Commenting on the results, Koichi Suzuki, president and chief executive officer, said, ‘We continued to record good results in 2Q07. The revenues and operating income have shown a steady increasing trend supported by the favourable increase in monthly recurring revenues from our internet connectivity and value added services, or VAS. Revenues from internet connectivity services increased continuously in 2Q07 mainly due to the shift by corporate customers to higher speeds and our business expansion in the home users market by our acquisition of hi-ho Inc. Corporate customers keep showing strong demands for our outsourcing services including anti-spam services and data centres to reduce the risk of interruptions to their businesses and increase security measures.’

For the full year ending 31 March 2008, IIJ has maintained its earlier forecast of revenues of JPY69 billion, net income of JPY5.6 billion, operating income of JPY4.6 billion and income before income tax expense of JPY5.1 billion.

Japan, Internet Initiative Japan (IIJ)