Highlights of Financial Results for 1Q23 | FY23 Targets | ||||||
First Half | Full Year | ||||||
Total revenues | up | 5.6 | % | YoY2 | |||
Operating profit | down | 0.5 | % | YoY | |||
Profit before tax | down | 17.2 | % | YoY | |||
Net profit3 | down | 18.4 | % | YoY | |||
Overview of 1Q23 Financial Results and Business Outlook
“Legacy Japanese enterprises’ internal trunk networks and systems have been gradually shifting to more complex and combined ones with adopting Internet technologies. As the consequence to this movement, we are seeing dramatically increasing business opportunities to acquire large-scale network replacement transactions, which have been mainly covered by system integrators and telecom carriers. For such projects, we offer our various Internet-related network services elements including cybersecurity related services line-up and systems integration (SI) function in front. As we believe that one of our competitive advantages would be stable network operation capability, once Japanese enterprises become to utilize ICT4/DX (Digital transformation) more and new technologies such as AI for their businesses, our business values would become further significant. We would like to pursue our consistent business growth strategy going forward,” said
“We started 1Q23 with continuous demands for network enhancement and replacement among Japanese enterprises. We had 5.6% of revenue growth among which network services revenues excluding mobile services grew by 11.1% YoY and operating profit slightly decreased by 0.5% YoY. Generally, since 1Q is the calm season in
“We established a new shareholder structure by inviting KDDI as one of our largest shareholders with the same position of
________________________________________
1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with IFRS, unaudited and consolidated.
2 YoY is an abbreviation for year over year change.
3 Net profit is “profit for the year attributable to owners of the parent.”
4 Information and Communication Technology (ICT) is a general term of technologies in relation to hardware, software, system and data communication used for information communication by computers.
5 For details, please refer to our press release titled “Partial Disposal of Shares of Common Stock Held by Nippon Telegraph and Telephone Corporation (Largest Shareholder), Acquisition of Shares of Common Stock by KDDI Corporation, Acquisition of Treasury Stock, etc.” (https://www.iij.ad.jp/en/ir/news/2023/pdf/20230518_E.pdf).
1Q23 Financial Results Summary
We have omitted segment analysis because most of our revenues are dominated by network services and systems integration (SI) business.
Operating Results Summary | ||||||
1Q22 | 1Q23 | YoY Change | ||||
JPY millions | JPY millions | % | ||||
Total revenues | 58,190 | 61,420 | 5.6 | |||
Network services | 33,234 | 36,354 | 9.4 | |||
Systems integration (SI) | 24,269 | 24,341 | 0.3 | |||
ATM operation business | 687 | 725 | 5.5 | |||
Total costs | (45,490 | ) | (47,620 | ) | 4.7 | |
Network services | (24,431 | ) | (26,133 | ) | 7.0 | |
Systems integration (SI) | (20,659 | ) | (21,085 | ) | 2.1 | |
ATM operation business | (400 | ) | (402 | ) | 0.5 | |
Total gross profit | 12,700 | 13,800 | 8.7 | |||
Network services | 8,803 | 10,221 | 16.1 | |||
Systems integration (SI) | 3,610 | 3,256 | (9.8 | ) | ||
ATM operation business | 287 | 323 | 12.5 | |||
SG&A, R&D, and other operating income (expenses) | (7,674 | ) | (8,797 | ) | 14.6 | |
Operating profit | 5,026 | 5,003 | (0.5 | ) | ||
Profit before tax | 6,623 | 5,481 | (17.2 | ) | ||
Profit for the period attributable to owners of the parent | 4,391 | 3,583 | (18.4 | ) | ||
(Note) Systems integration includes equipment sales. |
Segment Results Summary | ||||
1Q22 | 1Q23 | |||
JPY millions | JPY millions | |||
Total revenues | 58,190 | 61,420 | ||
Network services and SI business | 57,531 | 60,716 | ||
ATM operation business | 687 | 725 | ||
Elimination | (28 | ) | (21 | ) |
Operating profit | 5,026 | 5,003 | ||
Network services and SI business | 4,809 | 4,750 | ||
ATM operation business | 237 | 253 | ||
Elimination | (20 | ) | - |
1Q23 Revenues and Income
Revenues
Total revenues were
Network services revenue was
Revenues for Internet connectivity services for enterprise were
Revenues for Internet connectivity services for consumers were
Revenues for Outsourcing services were
Revenues for WAN services were
Network Services Revenues Breakdown | |||||||
1Q22 | 1Q23 | YoY Change | |||||
JPY millions | JPY millions | % | |||||
Total network services | 33,234 | 36,354 | 9.4 | ||||
Internet connectivity services (enterprise) | 9,516 | 10,772 | 13.2 | ||||
IP services (including data center connectivity services) | 3,446 | 3,908 | 13.4 | ||||
IIJ Mobile Services | 5,060 | 5,773 | 14.1 | ||||
Enterprise mobile services (IoT usages etc.) | 2,634 | 3,147 | 19.5 | ||||
IIJ Mobile MVNO Platform Service (MVNE) | 2,426 | 2,626 | 8.2 | ||||
Others | 1,010 | 1,091 | 8.0 | ||||
Internet connectivity services (consumer) | 6,099 | 5,993 | (1.7 | ) | |||
IIJmio Mobile Services | 5,310 | 5,170 | (2.6 | ) | |||
Others | 789 | 823 | 4.3 | ||||
Outsourcing services | 10,944 | 12,534 | 14.5 | ||||
WAN services | 6,675 | 7,055 | 5.7 |
Number of Contracts and Subscription for Connectivity Services (Note 1) | |||||||
As of | As of | YoY Change | |||||
Internet connectivity services (enterprise) | 2,582,448 | 3,163,457 | 581,009 | ||||
IP service (greater than or equal to 1Gbps) (Note 2) | 787 | 1,369 | 582 | ||||
IP service (less than 1Gbps) (Note 2) | 1,247 | 1,390 | 143 | ||||
IIJ Mobile Services | 2,489,768 | 3,066,250 | 576,482 | ||||
Enterprise mobile services (IoT usages etc.) | 1,457,464 | 1,951,122 | 493,658 | ||||
IIJ Mobile MVNO Platform Service (MVNE) | 1,032,304 | 1,115,128 | 82,824 | ||||
Others | 90,646 | 94,448 | 3,802 | ||||
Internet connectivity services (consumer) | 1,464,327 | 1,541,272 | 76,945 | ||||
IIJmio Mobile Services | 1,125,756 | 1,203,323 | 77,567 | ||||
Others | 338,571 | 337,949 | (622 | ) | |||
Total contracted bandwidth (Gbps) (Note 3) | 7,600.9 | 9,375.7 | 1,774.8 | ||||
(Notes) | |||||||
1. | Numbers in the table above show number of contracts except for “IIJ Mobile Services (enterprise)” and “IIJmio Mobile Services” which show number of subscriptions. | ||||||
2. | The numbers of IP service contracts include the numbers of IIJ data center connectivity service contracts. The number of IP services (greater than or equal to 1Gbps) contracts as of | ||||||
3. | Total contracted bandwidth is calculated by multiplying number of contracts under “Internet connectivity services (enterprise)” except for “IIJ Mobile Services” and the contracted bandwidths of the services respectively. Total contracted bandwidth as of |
SI revenues, including equipment sales, were
Systems construction and equipment sales, a one-time revenue, was
Orders received for SI, including equipment sales, totaled
Order backlog for SI, including equipment sales, as of
ATM operation business revenues were
Cost of sales
Total cost of sales was
Cost of network services revenue was
Cost of SI revenues, including equipment sales was
Cost of ATM operation business revenues was
Selling, general and administrative expenses and other operating income and expenses
Selling, general and administrative expenses, including research and development expenses, totaled
Other operating income was
Other operating expenses was
Operating profit
Operating profit was
Finance income and expenses, and share of profit (loss) of investments accounted for using equity method
Finance income was
Finance expense was
Share of loss of investments accounted for using equity method was
Profit before tax
Profit before tax was
Profit for the period
Income tax expense was
Profit for the period attributable to non-controlling interests was
Profit for the period attributable to owners of parent was
Financial Position as of
Figures for the fiscal year ended
As of
As of
As of
As of
As of
As of
1Q23 Cash Flows
Cash and cash equivalents as of
Net cash provided by operating activities for 1Q23 was
Net cash used in investing activities for 1Q23 was
Net cash used in financing activities for 1Q23 was
Future Prospects including FY2023 Financial Targets
As for financial results for 1Q23, although systems construction and equipment sales, one-time revenues, were lower than expected partly due to a delay and requiring longer lead time to recognize as revenues, other business domains were within our expectation. Therefore, financial targets for the fiscal year ending
Presentation
Presentation materials will be posted on our web site (https://www.iij.ad.jp/en/ir/) on
About
Founded in 1992, IIJ is one of Japan’s leading Internet-access and comprehensive network solutions providers. IIJ and its group companies provide total network solutions that mainly cater to high-end corporate customers. IIJ's services include high-quality Internet connectivity services, mobile services, security services, cloud computing services, and systems integration. Moreover, IIJ operates one of the largest Internet backbone networks in
For inquiries, contact:
IIJ Investor Relations | Tel: +81-3-5205-6500 | E-mail: ir@iij.ad.jp | URL: https://www.iij.ad.jp/en/ir |
Disclaimer:
Statements made in this press release regarding IIJ’s or management’s intentions, beliefs, expectations, or predictions for the future are forward-looking statements that are based on IIJ’s and managements’ current expectations, assumptions, estimates and projections about its business and the industry. These forward-looking statements, such as statements regarding revenues and profits, are subject to various risks, uncertainties and other factors that could cause IIJ’s actual results to differ materially from those contained in any forward-looking statement.
Condensed Consolidated Statements of Financial Position (Unaudited)
Millions of yen | Millions of yen | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 42,472 | 37,266 | ||||
Trade receivables | 41,340 | 34,639 | ||||
Inventories | 3,188 | 5,247 | ||||
Prepaid expenses | 15,341 | 21,183 | ||||
Contract assets | 2,178 | 2,075 | ||||
Other financial assets | 1,918 | 1,592 | ||||
Other current assets | 241 | 238 | ||||
Total current assets | 106,678 | 102,240 | ||||
Non-current assets | ||||||
Tangible assets | 23,321 | 26,045 | ||||
Right-of-use assets | 46,675 | 43,524 | ||||
9,859 | 10,097 | |||||
Intangible assets | 16,616 | 17,548 | ||||
Investments accounted for using equity method | 5,785 | 5,471 | ||||
Prepaid expenses | 12,579 | 15,514 | ||||
Contract assets | 106 | 93 | ||||
Other investments | 19,150 | 21,808 | ||||
Deferred tax assets | 325 | 204 | ||||
Other financial assets | 4,637 | 4,738 | ||||
Other non-current assets | 587 | 606 | ||||
Total non-current assets | 139,640 | 145,648 | ||||
Total assets | 246,318 | 247,888 | ||||
Millions of yen | Millions of yen | |||||
Liabilities and Equity | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Trade and other payables | 22,313 | 19,580 | ||||
Borrowings | 16,828 | 29,580 | ||||
Income taxes payable | 4,034 | 1,565 | ||||
Contract liabilities | 10,169 | 11,782 | ||||
Deferred income | 79 | 63 | ||||
Other financial liabilities | 18,105 | 19,577 | ||||
Other current liabilities | 6,336 | 6,054 | ||||
Total current liabilities | 77,864 | 88,201 | ||||
Non-current liabilities | ||||||
Borrowings | 3,602 | 1,840 | ||||
Retirement benefit liabilities | 4,513 | 4,631 | ||||
Provisions | 794 | 795 | ||||
Contract liabilities | 7,411 | 8,124 | ||||
Deferred income | 319 | 281 | ||||
Deferred tax liabilities | 610 | 1,088 | ||||
Other financial liabilities | 30,695 | 30,738 | ||||
Other non-current liabilities | 1,083 | 1,012 | ||||
Total non-current liabilities | 49,027 | 48,509 | ||||
Total liabilities | 126,891 | 136,710 | ||||
Equity | ||||||
Share capital | 25,562 | 25,562 | ||||
Share premium | 36,738 | 35,582 | ||||
Retained earnings | 51,202 | 52,281 | ||||
Other components of equity | 6,571 | 8,570 | ||||
(1,831 | ) | (12,027 | ) | |||
Total equity attributable to owners of the parent | 118,242 | 109,968 | ||||
Non-controlling interests | 1,185 | 1,210 | ||||
Total equity | 119,427 | 111,178 | ||||
Total liabilities and equity | 246,318 | 247,888 | ||||
Condensed Consolidated Statements of Profit or Loss (Unaudited)
Three Months Ended | Three Months Ended | |||||
Millions of yen | Millions of yen | |||||
Revenues | ||||||
Network services | 33,234 | 36,354 | ||||
Systems integration | 24,269 | 24,341 | ||||
ATM operation business | 687 | 725 | ||||
Total revenues | 58,190 | 61,420 | ||||
Cost of sales | ||||||
Cost of network services | (24,431 | ) | (26,133 | ) | ||
Cost of systems integration | (20,659 | ) | (21,085 | ) | ||
Cost of ATM operation business | (400 | ) | (402 | ) | ||
Total cost of sales | (45,490 | ) | (47,620 | ) | ||
Gross Profit | 12,700 | 13,800 | ||||
Selling, general and administrative expenses | (7,858 | ) | (8,795 | ) | ||
Other operating income | 194 | 30 | ||||
Other operating expenses | (10 | ) | (32 | ) | ||
Operating Profit | 5,026 | 5,003 | ||||
Finance income | 1,747 | 802 | ||||
Finance expenses | (136 | ) | (170 | ) | ||
Share of profit (loss) of investments accounted for using equity method | (14 | ) | (154 | ) | ||
Profit (loss) before tax | 6,623 | 5,481 | ||||
Income tax expense | (2,136 | ) | (1,824 | ) | ||
Profit (loss) for the period | 4,487 | 3,657 | ||||
Profit (loss) for the period attributable to: | ||||||
Owners of the parent | 4,391 | 3,583 | ||||
Non-controlling interests | 96 | 74 | ||||
Total | 4,487 | 3,657 | ||||
Earnings per share | ||||||
Basic earnings per share (yen) | 24.31 | 20.01 | ||||
Diluted earnings per share (yen) | 24.19 | 19.91 | ||||
*IIJ conducted a stock split at a ratio of two-for-one with an effective date of | ||||||
Basic earnings per share and diluted earnings per share are calculated as if the stock split had been conducted at the beginning of the previous fiscal year. |
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Three Months Ended | Three Months Ended | ||||
Millions of yen | Millions of yen | ||||
Profit (loss) | 4,487 | 3,657 | |||
Other comprehensive income, net of tax | |||||
Items that will not be reclassified to profit or loss | |||||
Net change in fair value of equity instruments designated as measured at fair value through other comprehensive income | (952 | ) | 1,441 | ||
Total items that will not be reclassified to profit or loss | (952 | ) | 1,441 | ||
Items that may be reclassified to profit or loss | |||||
Exchange differences on translation of foreign operations | 702 | 686 | |||
Financial assets measured at fair value through other comprehensive income | (1 | ) | ― | ||
Share of other comprehensive income of investments accounted for using equity method | 16 | 12 | |||
Total of items that may be reclassified to profit or loss | 717 | 698 | |||
Total other comprehensive income, net of tax | (235 | ) | 2,139 | ||
Other comprehensive income | 4,252 | 5,796 | |||
Other comprehensive income attributable to: | |||||
Owners of the parent | 4,156 | 5,722 | |||
Non-controlling interest | 96 | 74 | |||
Other comprehensive income | 4,252 | 5,796 | |||
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
Three months ended | ||||||||||||||||||||||
Owners of the parent’s shareholders’ equity | Non-controlling interests | Total equity | ||||||||||||||||||||
Share capital | Share premium | Retained earnings | Other components of equity | Total | ||||||||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||||||||
Balance, | 25,562 | 36,518 | 37,024 | 6,275 | (1,851 | ) | 103,528 | 1,093 | 104,621 | |||||||||||||
Cumulative impact of adopting IAS12 | - | - | 111 | - | - | 111 | - | 111 | ||||||||||||||
Restated balance at | 25,562 | 36,518 | 37,135 | 6,275 | (1,851 | ) | 103,639 | 1,093 | 104,732 | |||||||||||||
Comprehensive income | ||||||||||||||||||||||
Profit (loss) | - | - | 4,391 | - | - | 4,391 | 96 | 4,487 | ||||||||||||||
Other comprehensive income | - | - | - | (235 | ) | - | (235 | ) | - | (235 | ) | |||||||||||
Total comprehensive income | - | - | 4,391 | (235 | ) | - | 4,156 | 96 | 4,252 | |||||||||||||
Transactions with owners | ||||||||||||||||||||||
Disposal of treasury shares | - | 12 | - | - | 20 | 32 | - | 32 | ||||||||||||||
Dividends paid | - | - | (2,258 | ) | - | - | (2,258 | ) | (49 | ) | (2,307 | ) | ||||||||||
Stock-based compensation | - | 22 | - | - | - | 22 | - | 22 | ||||||||||||||
Total transactions with owners | - | 34 | (2,258 | ) | - | 20 | (2,204 | ) | (49 | ) | (2,253 | ) | ||||||||||
Balance, | 25,562 | 36,552 | 39,268 | 6,040 | (1,831 | ) | 105,591 | 1,140 | 106,731 | |||||||||||||
Three months ended | ||||||||||||||||||||||
Owners of the parent’s shareholders’ equity | Non-controlling interests | Total equity | ||||||||||||||||||||
Share capital | Share premium | Retained earnings | Other components of equity | Total | ||||||||||||||||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | Millions of yen | |||||||||||||||
Balance, | 25,562 | 36,738 | 51,202 | 6,571 | (1,831 | ) | 118,242 | 1,185 | 119,427 | |||||||||||||
Comprehensive income | ||||||||||||||||||||||
Profit (loss) | - | - | 3,583 | - | - | 3,583 | 74 | 3,657 | ||||||||||||||
Other comprehensive income | - | - | - | 2,139 | - | 2,139 | - | 2,139 | ||||||||||||||
Total comprehensive income | - | - | 3,583 | 2,139 | - | 5,722 | 74 | 5,796 | ||||||||||||||
Transactions with owners | ||||||||||||||||||||||
Purchase of treasury shares | - | - | - | - | (11,405 | ) | (11,405 | ) | - | (11,405 | ) | |||||||||||
Disposal of treasury shares | - | (53 | ) | - | - | 87 | 34 | - | 34 | |||||||||||||
Cancellation of treasury shares | - | (1,122 | ) | - | - | 1,122 | - | - | - | |||||||||||||
Dividends paid | - | - | (2,644 | ) | - | - | (2,644 | ) | (49 | ) | (2,693 | ) | ||||||||||
Stock-based compensation | - | 19 | - | - | - | 19 | - | 19 | ||||||||||||||
Transfer from other components of equity to retained earnings | - | - | 140 | (140 | ) | - | - | - | - | |||||||||||||
Total transactions with owners | - | (1,156 | ) | (2,504 | ) | (140 | ) | (10,196 | ) | (13,996 | ) | (49 | ) | (14,045 | ) | |||||||
Balance, | 25,562 | 35,582 | 52,281 | 8,570 | (12,027 | ) | 109,968 | 1,210 | 111,178 | |||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended | Three Months Ended | |||||
Millions of yen | Millions of yen | |||||
Cash flows from operating activities | ||||||
Profit (loss) before tax | 6,623 | 5,481 | ||||
Adjustments | ||||||
Depreciation and amortization | 7,055 | 7,285 | ||||
Loss (gain) on sales/disposals of property and equipment | (162 | ) | 21 | |||
Shares of loss (profit) of investments accounted for using equity method | 14 | 154 | ||||
Finance income | (1,747 | ) | (802 | ) | ||
Finance expenses | 136 | 170 | ||||
Other | 41 | 78 | ||||
Changes in working capital | ||||||
Decrease (increase) in trade receivables | 3,568 | 6,907 | ||||
Decrease (increase) in inventories | (674 | ) | (2,008 | ) | ||
Decrease (increase) in prepaid expenses | (3,289 | ) | (8,488 | ) | ||
Decrease (increase) in contract assets | (558 | ) | 117 | |||
Decrease (increase) in other assets | (3 | ) | 18 | |||
Decrease (increase) in other financial assets | (117 | ) | 125 | |||
Increase (decrease) in trade and other payables | (832 | ) | (2,819 | ) | ||
Increase (decrease) in contract liabilities | 554 | 2,021 | ||||
Increase (decrease) in deferred income | (1 | ) | 0 | |||
Increase (decrease) in other liabilities | (943 | ) | (408 | ) | ||
Increase (decrease) in other financial liabilities | 1,255 | 1,303 | ||||
Increase (decrease) in retirement benefit liabilities | (23 | ) | 119 | |||
Subtotal | 10,897 | 9,274 | ||||
Interest and dividends received | 182 | 191 | ||||
Interest paid | (133 | ) | (150 | ) | ||
Income taxes paid | (6,091 | ) | (4,299 | ) | ||
Cash flows from operating activities | 4,855 | 5,016 | ||||
Cash flows from investing activities | ||||||
Purchases of tangible assets | (1,839 | ) | (3,670 | ) | ||
Proceeds from sales of tangible assets | 791 | 250 | ||||
Purchases of intangible assets | (1,149 | ) | (2,689 | ) | ||
Purchases of other investments | (161 | ) | (245 | ) | ||
Proceeds from sales of other investments | 9 | 231 | ||||
Payments for leasehold deposits and guarantee deposits | (9 | ) | (285 | ) | ||
Proceeds from collection of leasehold deposits and guarantee deposits | 10 | 65 | ||||
Payments for refundable insurance policies | (19 | ) | (19 | ) | ||
Other | 1 | (4 | ) | |||
Cash flows from investing activities | (2,366 | ) | (6,366 | ) | ||
Cash flows from financing activities | ||||||
Repayment of long-term borrowings | (750 | ) | (1,015 | ) | ||
Net increase (decrease) in short-term borrowings | - | 12,000 | ||||
Purchase of treasury shares | - | (11,405 | ) | |||
Proceeds from other financial liabilities | - | 3,582 | ||||
Payments of other financial liabilities | (4,819 | ) | (5,010 | ) | ||
Dividends paid | (2,258 | ) | (2,644 | ) | ||
Other | (48 | ) | (43 | ) | ||
Cash flows from financing activities | (7,875 | ) | (4,535 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | 552 | 679 | ||||
Net increase (decrease) in cash and cash equivalents | (4,834 | ) | (5,206 | ) | ||
Cash and cash equivalents, beginning of the period | 47,391 | 42,472 | ||||
Cash and cash equivalents, end of the period | 42,557 | 37,266 | ||||
Notes to Condensed Consolidated Financial Statements (Unaudited)
Going Concern Assumption
Nothing to be reported.
Changes in Accounting Policies
As a result of the accordance of IAS 12 "Income Taxes"(revised
The accordance of this standard also requires retrospective adjustments to the Consolidated Financial Statements of the previous fiscal year. As a result, the consolidated statement of financial position of the previous fiscal year for, "Deferred tax assets" increased by
Furthermore, the cumulative effect of the accordance of this standard has been reflected the Consolidated Statement of Changes in Shareholder's Equity of previous first quarter cumulative period, as a result, "Retained earnings" increased by
Segment Information
IIJ and its subsidiaries (collectively “the Company”) primarily operates its network service and system integration business, which provides a comprehensive range of network solutions to meet its customers’ needs by cross-selling a variety of services, including Internet connectivity services, WAN services, outsourcing services, systems integration and sales of network-related equipment, and the ATM operation business. Therefore, the Company defined two reportable segments: “Network service and systems integration business” and “ATM operation business.”
Segment information for the Company is as follows:
Three months ended | |||||||||
Reportable segments | |||||||||
Network service and systems integration business | ATM operation business | Adjustments | Consolidated | ||||||
JPY millons | JPY millons | JPY millons | JPY millons | ||||||
Revenue | |||||||||
Customers | 57,503 | 687 | - | 58,190 | |||||
Intersegment transactions | 28 | - | (28 | ) | - | ||||
Total revenue | 57,531 | 687 | (28 | ) | 58,190 | ||||
Segment operating profit | 4,809 | 237 | (20 | ) | 5,026 | ||||
Finance income | 1,747 | ||||||||
Finance expense | (136 | ) | |||||||
Share of profit (loss) of investments accounted for using the equity method | (14 | ) | |||||||
Profit before tax | 6,623 | ||||||||
Three months ended | |||||||||
Reportable segments | |||||||||
Network service and systems integration business | ATM operation business | Adjustments | Consolidated | ||||||
JPY millons | JPY millons | JPY millons | JPY millons | ||||||
Revenue | |||||||||
Customers | 60,695 | 725 | - | 61,420 | |||||
Intersegment transactions | 21 | - | (21 | ) | - | ||||
Total revenue | 60,716 | 725 | (21 | ) | 61,420 | ||||
Segment operating profit | 4,750 | 253 | - | 5,003 | |||||
Finance income | 802 | ||||||||
Finance expense | (170 | ) | |||||||
Share of profit (loss) of investments accounted for using the equity method | (154 | ) | |||||||
Profit before tax | 5,481 | ||||||||
Intersegment transactions are based on market price.
Subsequent Events
Nothing to be reported.
Note: The following information is provided to disclose
Consolidated Financial Results for the Three Months ended
Company name:
Exchange listed:
Ticker symbol: 3774
URL: https://www.iij.ad.jp/
Representative:
Contact:
TEL: (03) 5205-6500
Scheduled date for filing of quarterly report (Shihanki-houkokusho) to Japan’s regulatory organization:
Scheduled date for dividend payment: -
Supplemental material on quarterly results: Yes
Presentation on quarterly results: Yes (for institutional investors and analysts)
(Amounts of less than
1. Consolidated Financial Results for the Three Months ended
(1) Consolidated Results of Operations
(% shown is YoY change)
Revenues | Operating profit | Profit (loss) before tax | Profit (loss) for the period | Profit (loss) attributable to owners of the parent | Other comprehensive income | ||||||||||||
JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | ||||||
Three Months ended | 61,420 | 5.6 | 5,003 | (0.5 | ) | 5,481 | (17.2 | ) | 3,657 | (18.5 | ) | 3,583 | (18.4 | ) | 5,796 | 36.3 | |
Three Months ended | 58,190 | 9.8 | 5,026 | 15.3 | 6,623 | 23.8 | 4,487 | 26.6 | 4,391 | 25.2 | 4,252 | (3.0 | ) |
Basic earnings per share | Diluted earnings per share | |
JPY | JPY | |
Three Months ended | 20.01 | 19.91 |
Three Months ended | 24.31 | 24.19 |
(Note) IIJ conducted a stock split at a ratio of two-for-one with an effective date of
(2) Consolidated Financial Position
Total assets | Total equity | Total equity attributable to owners of the parent | Ratio of owners' equity to total assets | |
JPY millions | JPY millions | JPY millions | % | |
As of | 247,888 | 111,178 | 109,968 | 44.4 |
As of | 246,318 | 119,427 | 118,242 | 48.0 |
(Note) Figures for the fiscal year ended
2.Dividends
Annual Dividends | |||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |
JPY | JPY | JPY | JPY | JPY | |
Fiscal Year Ended | ― | 29.25 | ― | 14.63 | ― |
Fiscal Year Ending | ― | ||||
Fiscal Year Ending | 17.18 | ― | 17.18 | 34.36 |
(Notes)
- Changes from the latest forecasts disclosed: No
- IIJ conducted a stock split at a ratio of two-for-one effective as of
October 1, 2022 . The interim dividend for the fiscal year endedMarch 31, 2023 is on a pre-split basis, and if calculated on a post-split basis, the interim dividend is14.625 yen per share and the total annual dividend is29.255 yen per share.
3.Targets of Consolidated Financial Results for the Fiscal Year ending
(
(% shown is YoY change)
Revenues | Operating profit | Profit (loss) before tax | Profit (loss) for the year attributable to owners of the parent | Basic earnings per share | |||||
JPY millions | % | JPY millions | % | JPY millions | % | JPY millions | % | JPY | |
Interim Period Ending | 138,000 | 13.1 | 13,400 | 19.9 | 13,000 | 1.1 | 8,850 | 2.5 | 49.74 |
Fiscal Year Ending | 286,000 | 13.2 | 31,500 | 15.7 | 30,350 | 11.1 | 20,720 | 9.9 | 116.82 |
(Notes)
- Changes from the latest forecasts disclosed: None
- As for the details about our financial targets for the fiscal year ending
March 31, 2024 , please refer to “Future Prospects including FY2023 Financial Targets ” which is disclosed on page 8 of this earnings release. - YoY change of Profit (loss) for the year attributable to owners of the parent is compared with the previous year's figures after retrospective application of IAS 12 "Income Taxes."
- IIJ acquired 3,928,500 shares of treasury stock on
May 19, 2023 . The target of basic earnings per share is the amount after the acquisition of treasury stock.
* Notes:
(1) Changes in significant subsidiaries: None
(2) Changes in accounting policies and estimate
- Changes in accounting policies required by IFRS: Yes
- Other changes in accounting policies: None
- Changes in accounting estimates: None
As for the details, please refer to “Changes in Accounting Policies” in Notes to Condensed Consolidated Financial Statements (Unaudited), which is disclosed on page 16 of this earnings release.
(3) Number of shares issued (common stock)
- Number of shares issued (inclusive of treasury stock):
As ofJune 30, 2023 : 183,141,100 shares
As ofMarch 31, 2023 : 187,069,600 shares - Number of treasury stock:
As ofJune 30, 2023 : 6,329,602 shares
As ofMarch 31, 2023 : 6,371,732 shares - Number of weighted average common shares outstanding:
For the three months endedJune 30, 2023 : 179,022,096 shares
For the three months endedJune 30, 2022 : 180,638,862 shares
* IIJ conducted a stock split at a ratio of two-for-one with an effective date of
* Status of Audit Procedures
This document is not subject to the audit procedures by certified public accountant or independent auditor.
* Explanation on the Appropriate Use of Future Outlook and other special instructions
i) Forward-looking statements
Forward-looking statements disclosed in this document are based on IIJ Group’s expectation, estimates, and projections based on information available to
ii) Others
Presentation material will be disclosed on TDnet as well as posted on our website on
Source:
2023 GlobeNewswire, Inc., source