IIJ reports 4.2% increase in revenue to JPY27.5bn in 1Q14

8 Aug 2014

Japanese broadband and network services provider Internet Initiative Japan (IIJ) has published its financial results for the three months ended 30 June 2014 (Q1 FY2014) reporting a 4.2% rise in revenue year-on-year, to JPY27.552 billion (USD271.33 million). The company has, however, experienced a significant drop in net profit, which slumped 48.5% to JPY491 million at end-June 2014, compared to the JPY954 million reported in the corresponding period of FY2013. Revenue generated by the network services and system integration (SI) business dominated the total turnover, amounting to JPY26.819 billion by end-June 2014, up from JPY25.939 billion in 1Q13, while the company’s ATM business generated JPY829 million in the period under review. IIJ reported adjusted EBITDA of JPY3.080 billion at 30 June 2014, an 8.8% decrease on the JPY3.376 billion reported in the corresponding period of 2013, while CAPEX fell by JPY263 million y-o-y to JPY2.630 billion.

In operational terms, the network provider reported that its business subscriber base reached 145,280 users in the twelve months to end-June 2014, while residential customers increased by 159,800 net additions to 669,056 in the period under review.

IIJ COO Eijiro Katsu commented: ‘Our Mobile Virtual Network Operator (MVNO) services for consumers have been growing rapidly with our low-cost LTE SIM card offerings. We started offering voice call services, mobile number portability (MNP) option and unlocked SIM smartphones in 1Q14. LTE SIM services have been receiving much attention in the Japanese market and we anticipate a certain volume of price-sensitive mobile carriers’ subscribers to switch within several years. Although our consumer service is growing, our main focus with MVNO business remains on enterprises. M2M and Mobile Virtual Network Enabler (MVNE) demands from blue-chips should continue to rise and become our important business growth drivers in near future by leveraging our large MVNO infrastructure and related services we develop on our own.’

Japan, Internet Initiative Japan (IIJ)