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Financial results presentation3834Asahi Net,Inc.Information and Communications, Services and Others

Presentation Materials for the Interim Financial Results Briefing for the Fiscal Year Ending March 2027

In the first half of the fiscal year ending March 2027, revenue increased 0.8% year on year, driven by higher traffic volumes for “v6 Connect” and continued growth in FTTH subscriptions. Operating profit, however, decreased by ¥490 million due to higher depreciation expenses for the core system and the upfront investment in promotional expenses to acquire subscribers.

Worth reading
89Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
490
¥ million (year-on-year decrease in operating profit)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Financial results presentationFY2027/3 interim period8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥6,779 million+0.8%
Operating profit¥527 million-48.2%
Ordinary income¥541 million-47.4%
Net income¥376 million-48.1%
Operating profit margin7.8 %
Results for the three months of the current quarter
Net Sales
¥3,402 million
Operating profit
¥284 million
Full-year earnings forecast
Net Sales
¥14,000 million
Operating profit
¥1,800 million
EBITDA
¥3,345 million
Capital Expenditure
¥2,500 million
Net income for the current fiscal year
¥1,300 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales48.4 %
Operating profit29.3 %
Ordinary income29.6 %
Net income for the current fiscal year28.9 %
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
v6 Connect75
All units in apartment buildings23
Hikari Collaboration20
Other FTTH15
ADSL-10
LTE・WiMAX-15
manaba-24
Other-30
Operating profit
Increase in sales53
Product cost of sales, line procurement, etc.-6
Cost of sales and depreciation expense-273
Cost of sales, outsourced services, and personnel expenses-49
Other costs-77
Selling, general and administrative expenses-136
New initiatives
  • Strengthening acquisition channels and A/B testing of the web application page
  • New WiMAX service for IoT device manufacturers
  • Strengthening the security infrastructure for email and other services
  • manaba AI learning-log analysis and student-support solution
  • Joint research with the University of Tsukuba
  • Raise the starting salary for new graduates joining in 2027 to ¥4 million
Key KPIsA metric the company considers important as a management benchmark.
  • FTTH connectivity subscriptions519 Thousand IDs
    yoy_change16
  • Mobile connectivity subscriptions48 Thousand IDs
    yoy_change1
  • FTTH churn rate0.59 %
  • Number of v6 Connect partner operators10 companies
  • manaba contracted IDs758 Thousand IDs
    yoy_change-27
  • Schools adopting manaba across all faculties79 Universities and junior colleges
  • EBITDA¥1,333 million
  • EBITDA margin19.7 %
Segment results
Internet Connectivity Services
Net Sales
¥6,142 million+1.4%
ISP ASAHI Net
Net Sales
¥4,881 million+0.2%
VNE v6 Connect
Net Sales
¥1,260 million+6.4%
Internet-related services
Net Sales
¥636 million-4.7%
manaba
Net Sales
¥266 million-8.5%
Other related services
Net Sales
¥370 million-1.8%
Financial targets
Equity ratio
88.1 %
Capital expenditures
¥1,424 million interim period
Annual Dividend
¥26 per share
Interim13
End of period13
Payout ratio
51.8 %
Total payout ratio
51.8 %
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFY2027/3 interim period
Net Sales¥6,779 million (YoY +0.8%)
Operating profit¥527 million (YoY -48.2%)
Ordinary income¥541 million (YoY -47.4%)
Net income¥376 million (YoY -48.1%)
Operating profit margin7.8 %
Results for the three months of the current quarterNet Sales ¥3,402 million / Operating profit ¥284 million
Full-year earnings forecastNet Sales ¥14,000 million / Operating profit ¥1,800 million / EBITDA ¥3,345 million / Capital Expenditure ¥2,500 million / Net income for the current fiscal year ¥1,300 million
Progress against full-year forecastNet Sales 48.4 % / Operating profit 29.3 % / Ordinary income 29.6 % / Net income for the current fiscal year 28.9 %
Segment resultsInternet Connectivity Services Net Sales ¥6,142 million (YoY +1.4%) / ISP ASAHI Net Net Sales ¥4,881 million (YoY +0.2%) / VNE v6 Connect Net Sales ¥1,260 million (YoY +6.4%) / Internet-related services Net Sales ¥636 million (YoY -4.7%) / manaba Net Sales ¥266 million (YoY -8.5%) / Other related services Net Sales ¥370 million (YoY -1.8%)
Breakdown of Factors Affecting the ChangeNet Sales v6 Connect 75 / All units in apartment buildings 23 / Hikari Collaboration 20 / Other FTTH 15 / ADSL -10 / LTE・WiMAX -15 / manaba -24 / Other -30 / Operating profit Increase in sales 53 / Product cost of sales, line procurement, etc. -6 / Cost of sales and depreciation expense -273 / Cost of sales, outsourced services, and personnel expenses -49 / Other costs -77 / Selling, general and administrative expenses -136
Key KPIsFTTH connectivity subscriptions 519 Thousand IDs, Mobile connectivity subscriptions 48 Thousand IDs, FTTH churn rate 0.59 %, Number of v6 Connect partner operators 10 companies, manaba contracted IDs 758 Thousand IDs, Schools adopting manaba across all faculties 79 Universities and junior colleges, EBITDA ¥1,333 million, EBITDA margin 19.7 %
Financial targetsEquity ratio 88.1 % / ROE Not disclosed
Annual Dividend¥26 per share
Payout ratio51.8 %
Capital expenditures¥1,424 million (interim period)
New initiativesStrengthening acquisition channels and A/B testing of the web application page, New WiMAX service for IoT device manufacturers, Strengthening the security infrastructure for email and other services, manaba AI learning-log analysis and student-support solution, Joint research with the University of Tsukuba, Raise the starting salary for new graduates joining in 2027 to ¥4 million
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Higher traffic volumes for “v6 Connect” and continued growth in FTTH subscriptions drove the increase in revenue. Operating profit declined due to higher depreciation expenses associated with the renewal of the core system, upfront promotional spending to acquire subscribers, and increases in outsourced services and personnel expenses.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Presentation Materials for the Interim Financial Results Briefing for the Fiscal Year Ending March 2027 | Asahi Net,Inc. (3834) timely disclosure | Komori