Launch of MVNO Business Operations

「In light of these circumstances, the company will shift from a business structure dependent on one-time revenue generated when new lines are acquired to a more stable and profitable structure centered on recurring revenue earned continuously from lines held. As a specific measure, from October 2026 the company will revise its monthly base charges and expand recurring revenue by raising the monthly usage fee per line received from existing lines held.」

「During the current interim consolidated accounting period, the company continued to conduct active advertising and promotional activities to expand the number of lines held. However, resolving the inefficiencies in advertising initiatives that arose during the first quarter of the current consolidated accounting period took time, and the number of new lines acquired remained below expectations. As a result, revenue increased to ¥6,352,842 thousand, up 18.7% year on year, but on the profit front the gross profit margin deteriorated because the number of new line contracts acquired fell short of plan, resulting in a segment loss of ¥186,022 thousand, compared with profit of ¥412,110 thousand in the same period of the previous year.」

「Going forward, while continuing to strengthen the acquisition of new line contracts, the company will work to expand its medium- to long-term recurring revenue base by expanding options tailored to user needs, developing new pricing plans, and launching new fixed-line services.」

「During the current interim consolidated accounting period, the company sought to generate customer referrals from its own telecommunications media by strengthening coordination with its media business, while actively using media operated by other companies. As a result, the number of new lines acquired remained strong. Meanwhile, by analyzing the reasons for cancellations, the company sought to create revenue opportunities at cancellation by launching guidance for switching from WiMAX to fiber-optic lines.」

「As a result, the number of lines held exceeded 100,000 as of the end of June 2024」

「During the third quarter of the current consolidated cumulative period, the company sought to generate customer referrals from its own telecommunications media through coordination with its media business, while actively using media operated by other companies, including by launching trial TV commercials in February 2024. As a result, the number of new lines acquired continued to grow steadily. The number of lines held also exceeded 90,000 as of the end of March 2024」

「During the second quarter of the current consolidated cumulative period, the company sought to generate customer referrals from its own telecommunications media through coordination with its media business, while actively using media operated by other companies. As a result, the number of new lines acquired remained solid.」

「During the first quarter of the current consolidated cumulative period, the company sought to generate customer referrals from its own telecommunications media by strengthening coordination with its media business, while actively using media operated by other companies. As a result, the number of new lines acquired remained solid. In addition, by promoting changes to successor 5G lines among users whose existing 4G line contracts were expiring, the company sought to extend the contract period per user.」

「During the current consolidated fiscal year, the number of new lines acquired increased as referrals from the Company's own communications media remained solid, supported by stronger coordination with the media business, and as the company actively gained exposure on media operated by other companies. The company also sought to extend the contract period per user by encouraging users whose existing 4G line contracts were expiring to switch to successor 5G lines.」

「During the third quarter of the consolidated cumulative period, the number of new lines acquired increased as referrals from the Company's own communications media remained solid, supported by stronger coordination with the media business, and as the company actively gained exposure on media operated by other companies. The company also sought to extend the contract period per user by encouraging users whose existing 4G line contracts were expiring to switch to successor 5G lines.」

「The number of new lines acquired increased as referrals from the Company's own communications media remained solid, supported by stronger coordination with the media business, and as the company actively gained exposure on media operated by other companies. The company also sought to extend the contract period per user by encouraging users whose existing 4G line contracts were expiring to switch to successor 5G lines.」

「During the first quarter of the consolidated cumulative period, the number of new lines acquired increased as referrals from the Company's own communications media remained solid. The company also sought to extend the contract period per user by encouraging users whose existing 4G line contracts were expiring to switch to successor 5G lines.」

「Referrals from the Company's own communications media, which had been sluggish in the second half of the previous fiscal year, began to recover, and the number of new lines acquired increased, primarily through the new WiMAX 5G product. Meanwhile, to build a medium-term recurring revenue base, the company introduced a new pricing plan under which one-time revenue recognised when acquiring new contract lines declines while monthly revenue during the contract period increases. This extended the revenue period per contracted line, and the company conducted aggressive advertising and promotional activities to acquire new lines, temporarily increasing acquisition costs and reducing profitability during the period.」

「During the third quarter of the consolidated cumulative period, the number of new lines acquired, primarily WiMAX 5G, increased as referrals from the Company's own communications media continued to recover from the second quarter. Meanwhile, to build a medium-term recurring revenue base, the company introduced a new pricing plan under which one-time revenue recognised when acquiring new contract lines declines while monthly revenue during the contract period increases. This extended the revenue period per contracted line, and the temporary increase in acquisition costs to aggressively acquire new lines reduced profitability during the period.」

「During the second quarter of the consolidated cumulative period, the number of new lines acquired, primarily WiMAX 5G, showed an increasing trend as referrals from the Company's own communications media began to show signs of recovery. Meanwhile, to build a medium-term recurring revenue base, the company introduced a new pricing plan under which one-time revenue recognised upfront when acquiring new contract lines declines while revenue recognised monthly during the contract period increases. This extended the revenue period per contracted line, and the increase in one-time acquisition costs associated with acquiring new lines reduced profitability during the period. As a result, revenue was ¥2,161,018 thousand, up 5.9% year on year, and segment profit was ¥50,712 thousand, down 55.5% year on year.」

「During the first quarter of the consolidated cumulative period, the number of new lines acquired, primarily WiMAX 5G, showed an improving trend as referrals from the Company's own communications media began to show signs of recovery. Meanwhile, to build a medium-term recurring revenue base, the company introduced a new pricing plan under which one-time revenue recognised when acquiring new contract lines declines while monthly revenue during the contract period increases. This extended the revenue period per contracted line, and the increase in one-time acquisition costs associated with acquiring new lines reduced profitability during the period.」

「As a result, revenue was ¥3,866,481 thousand, down 0.2% from the previous fiscal year, and segment profit was ¥137,556 thousand, down 64.7% from the previous fiscal year.」

「Although communications fee revenue increased substantially as the number of lines in service grew following the acquisition of new line contracts, primarily in the fourth quarter of the previous fiscal year, sales incentive revenue declined as the number of new lines acquired fell. As a result, revenue was ¥2,949,246 thousand, up 21.4% year on year, while segment profit was ¥136,942 thousand, down 27.2% year on year.」

「During the second quarter of the consolidated cumulative period, acquisition of new line contracts declined due to the completion of demand for improving and upgrading communications environments following the increase in companies introducing telework and the increase in time spent at home in the fourth quarter of the previous fiscal year, as well as a decline in referrals from the Company's own communications media.」

「Acquisition of new line contracts declined as demand for improving and upgrading communications environments, driven by the increase in companies introducing telework in the fourth quarter of the previous fiscal year, ran its course.」

「As the increase in companies introducing telework in response to the spread of COVID-19 made the development and strengthening of home communications environments an urgent issue, demand increased for the Group's services, which require no installation work and can be shipped on the same day at the earliest. As a result, the fourth quarter saw the highest-ever number of new line contracts, and the scale of operations grew substantially.」

「MEモバイル's Wi-Fi router service “カシモWiMAX” attracted a large number of new contracts, supported by its customer convenience, including same-day product shipment and next-day service availability at the earliest, as well as effective marketing activities leveraging synergies with the media business.」

「During the second quarter of the consolidated cumulative period, the company focused on acquiring new line contracts while leveraging synergies with its media business, and expanded its options menu and conducted Web marketing activities. These efforts paid off, and performance remained strong, with the cumulative number of contracted lines reaching approximately 45,000.」

「During the first quarter of the consolidated cumulative period, the company focused on acquiring new line contracts while leveraging synergies with its media business, and conducted marketing activities on the Web and designed simple, easy-to-understand pricing plans. These efforts paid off, and performance remained strong, with the cumulative number of contracted lines exceeding 40,000, among other developments.」

「This was also due to a significant increase in sales in the communications field operated by the consolidated subsidiary ＭＥモバイル, which reached approximately 3.7 times the previous fiscal year's level.」

「Other factors include monetisation of owned media and growth in the communications field, operated by its subsidiary 株式会社ＭＥモバイル.」

「In addition, the agricultural-machinery and communications businesses, which began contributing to earnings from the third quarter of the previous consolidated fiscal year following the success of earlier investments, continued to grow steadily during the first quarter under review.」

「In the agricultural machinery field, which the Group entered during the previous consolidated fiscal year, and the communications field, operated by its subsidiary 株式会社ＭＥモバイル, upfront investment has paid off and contributed to the Group's earnings in the current consolidated fiscal year」

「At 株式会社ＭＥモバイル, a subsidiary established in the previous fiscal year, prior investments have paid off, and performance has grown to the point where the development and expanded sales of new products are contributing to consolidated results.」

「Launch of an MVNO (mobile virtual network operator) service leveraging its track record in purchasing used smartphones」

「⇒ Expansion of personnel and equipment for the newly launched MVNO (mobile virtual network operator) business」

「The company has expanded personnel and equipment for its newly launched MVNO (mobile virtual network operator) business」