Komori
Financial results presentation4390IPS,Inc.Information and Communications, Services and Others

Materials for the Financial Results Briefing for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, consolidated revenue and profits increased, driven by growth in the International Communications business and improved profitability in the Domestic Communications and Medical & Healthcare businesses. The Company plans further revenue and profit growth for the fiscal year ending March 2027 and will continue growth investments, including in Candle and landing stations.

Worth reading
53Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
1734
¥ million (year-on-year increase in revenue)
Wording
—
How definitive the wording is.

Contents of this document

Financial results presentationFiscal year ending March 2026, full year11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥16,999 million+11.4%
Operating profit¥5,370 million+21.7%
Ordinary income¥5,787 million+42.1%
Net income¥4,196 million+64.9%
Operating profit margin31.6%; improved by 2.7 percentage points year on year (profit-generation ratio as stated in the materials)
Full-year earnings forecast
Net Sales
¥20,080 million
Operating profit
¥6,100 million
Ordinary income
¥6,177 million
Profit attributable to owners of the parent
¥4,200 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • International telecommunications business¥400 million
  • Domestic telecommunications business¥408 million
  • Medical and healthcare business¥165 million
  • Intersegment adjustments¥-18 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Assumed Exchange Rates
  • US$1: ¥150
  • PHP1: ¥2.6
Foreign exchange sensitivity
  • A ¥1 depreciation (appreciation) against the US dollar would increase (decrease) annual operating profit by approximately ¥15 million
  • A ¥0.1 depreciation (appreciation) against the Philippine peso would increase (decrease) annual operating profit by approximately ¥25 million
New initiatives
  • Joint construction of the new international submarine cable Candle with Meta, SoftBank and others
  • Construction of the Baler landing station and lease of the Poro Point landing station
  • Development of a next-generation data center hub under a memorandum of understanding with APECO
  • Licensing agreement with Gnani, an Indian AI startup
  • Opening of a new office in Subic
  • Provision of the Company's own numbers for inbound-side billing service "0120" from fiscal 2026
Key KPIsA metric the company considers important as a management benchmark.
  • Number of corporate internet connectivity service contracts2,103 Engagements
    Year on year against the same period last yearIncreased
  • ARPU7 Annual growth rate %
    Year on year against the same period last year7% growth each year over the past 3 years
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The number of corporate internet connectivity service contracts and ARPU. The target for the number of contracts at the end of 2026 has been revised to 3,000, while ARPU has grown by 7% annually over the past 3 years.
Segment results
International telecommunications business
Net Sales
¥12,943 million+15.4%
Operating profit
¥4,901 million+8.9%
Domestic telecommunications business
Net Sales
¥2,405 million-3.4%
Operating profit
¥397 million
Medical and healthcare business
Net Sales
¥1,650 million+6.1%
Operating profit
¥80 million
Medium-term management plan targets
Operating profit
¥10,000 million
Target fiscal yearNext medium-term management plan period (fiscal years ending March 2028 to March 2030)
Three-year cumulative operating cash flow
12,000 approximately million yen
Financial targets
Actual ROE
Fiscal year ending March 202624.6 %
Cost of capital
8 Approximately %
Market Size / Share
  • Asia-Pacific submarine cable system market
    Figures3.2
  • Asian AI data center/cloud market
    Figures5.6
  • Asia-Pacific data traffic ratio
    Figures49
Annual Dividend
Fiscal year ending March 2025
Interim¥20 per share
End of period¥20 per share
Total¥40 per share
Fiscal year ending March 2026
Interim¥20 per share
End of period¥20 per share
Total¥40 per share
Forecast for the fiscal year ending March 2027
Interim¥20 per share
End of period¥20 per share
Total¥40 per share
Payout ratio
Fiscal year ending March 2027 forecast12.5 %
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales¥16,999 million (YoY +11.4%)
Operating profit¥5,370 million (YoY +21.7%)
Ordinary income¥5,787 million (YoY +42.1%)
Net income¥4,196 million (YoY +64.9%)
Operating profit margin31.6%; improved by 2.7 percentage points year on year (profit-generation ratio as stated in the materials)
Full-year earnings forecastNet Sales ¥20,080 million / Operating profit ¥6,100 million / Ordinary income ¥6,177 million / Profit attributable to owners of the parent ¥4,200 million
Segment resultsInternational telecommunications business Net Sales ¥12,943 million (YoY +15.4%) / Operating profit ¥4,901 million (YoY +8.9%) / Domestic telecommunications business Net Sales ¥2,405 million (YoY -3.4%) / Operating profit ¥397 million / Medical and healthcare business Net Sales ¥1,650 million (YoY +6.1%) / Operating profit ¥80 million
Breakdown of Factors Affecting the ChangeFactors International telecommunications business / Amount ¥400 million, Factors Domestic telecommunications business / Amount ¥408 million, Factors Medical and healthcare business / Amount ¥165 million, Factors Intersegment adjustments / Amount ¥-18 million
Key KPIsIndicator name Number of corporate internet connectivity service contracts / Value 2,103 Engagements / Year on year against the same period last year Increased, Indicator name ARPU / Value 7 Annual growth rate (%) / Year on year against the same period last year 7% growth each year over the past 3 years
Unit price and quantity metricsThe number of corporate internet connectivity service contracts and ARPU. The target for the number of contracts at the end of 2026 has been revised to 3,000, while ARPU has grown by 7% annually over the past 3 years.
Assumptions Underlying the Business OutlookAssumed Exchange Rates US$1: ¥150, PHP1: ¥2.6 / Foreign exchange sensitivity A ¥1 depreciation (appreciation) against the US dollar would increase (decrease) annual operating profit by approximately ¥15 million, A ¥0.1 depreciation (appreciation) against the Philippine peso would increase (decrease) annual operating profit by approximately ¥25 million
Medium-term management plan targetsOperating profit ¥10,000 million / Three-year cumulative operating cash flow 12,000 approximately million yen
Financial targetsActual ROE 24.6 % / Cost of capital 8 Approximately %
Annual DividendFiscal year ending March 2025 Interim ¥20 per share / End of period ¥20 per share / Total ¥40 per share / Fiscal year ending March 2026 Interim ¥20 per share / End of period ¥20 per share / Total ¥40 per share / Forecast for the fiscal year ending March 2027 Interim ¥20 per share / End of period ¥20 per share / Total ¥40 per share
Payout ratio12.5 %
Market Size / ShareSubject Asia-Pacific submarine cable system market / Figures 3.2 Times (market size from 2020 to 2030), Subject Asian AI data center/cloud market / Figures 5.6 Times (market size from 2020 to 2030), Subject Asia-Pacific data traffic ratio / Figures 49 % (forecast for 2033)
New initiativesJoint construction of the new international submarine cable Candle with Meta, SoftBank and others, Construction of the Baler landing station and lease of the Poro Point landing station, Development of a next-generation data center hub under a memorandum of understanding with APECO, Licensing agreement with Gnani, an Indian AI startup, Opening of a new office in Subic, Provision of the Company's own numbers for inbound-side billing service "0120" from fiscal 2026
Items this document does not state (12)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey 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.

The main factors were solid performance in network construction services and carrier's-carrier transactions in the International Communications business, the absence of special factors from the previous fiscal year in the Domestic Communications business, and growth in LASIK and health screenings in the Medical & Healthcare business. Ordinary profit and net profit also benefited from the recording of ¥516 million in foreign exchange gains.

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.
Materials for the Financial Results Briefing for the Fiscal Year Ending March 2026 | IPS,Inc. (4390) timely disclosure | Komori