Worth reading
58In focus
Scored from 2 of 6 sectionsDirection
Neutral
Direction inferred from the company’s description.Scale
98.2
USD millionWording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending March 20274 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Operating profit¥61 100 million current fiscal year consolidated operating profit forecast
Full-year earnings forecast
Operating profit
61 Hundreds of millions of yen
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Line capacity to be sold after Candle’s IRU contract: Not disclosed due to confidentiality obligations, but the company stated that it would hold a certain amount of line capacity.
- Candle’s maintenance contract revenue: Not disclosed due to confidentiality obligations. The company explained that standard annual maintenance fees are generally equivalent to several percent of the IRU contract value.
- Timing of Candle’s revenue recognition: Expected in either the fiscal year ending March 2028 or the fiscal year ending March 2029, depending on when construction is completed.
- ¥10 billion operating profit target: The company intends to build on growth in existing businesses and businesses including Candle and the Philippines cable landing station business, rather than depend on a single large IRU contract.
- Baler/Poro Point cable landing stations: Discussions are under way with multiple international submarine cable owners. The company described completion and handover of Baler within the year as an important milestone.
- Wakayama project: The company expects to make a final investment decision around the second quarter of the fiscal year ending March 2027. The timing of revenue recognition has not been determined.
- InfiniVAN listing: Preparations will continue, but the specific timing will be determined based on market conditions and business progress.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
A business environment supporting investment in communications infrastructure, continued growth in existing businesses, and the accumulation of revenue opportunities including Candle and the Philippines cable landing station businessNew initiatives
- Capture demand for communications infrastructure originating from Candle, including cable landing stations, backhaul, interconnection, and data center connectivity
- Advance the Open Access CLS policy at the Baler/Poro Point cable landing stations
- Explore the development of an international submarine cable landing station business in Wakayama Prefecture
- Continue preparations for InfiniVAN’s listing
Medium-term management plan targets
Operating profit
100 Hundreds of millions of yen
Target fiscal yearFiscal years ending March 2028 through March 2030
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Operating profit | ¥61 100 million (current fiscal year consolidated operating profit forecast) |
| Full-year earnings forecast | Operating profit 61 Hundreds of millions of yen |
| Assumptions Underlying the Business Outlook | A business environment supporting investment in communications infrastructure, continued growth in existing businesses, and the accumulation of revenue opportunities including Candle and the Philippines cable landing station business |
| Medium-term management plan targets | Operating profit 100 Hundreds of millions of yen |
| Key points of the Q&A | Line capacity to be sold after Candle’s IRU contract: Not disclosed due to confidentiality obligations, but the company stated that it would hold a certain amount of line capacity., Candle’s maintenance contract revenue: Not disclosed due to confidentiality obligations. The company explained that standard annual maintenance fees are generally equivalent to several percent of the IRU contract value., Timing of Candle’s revenue recognition: Expected in either the fiscal year ending March 2028 or the fiscal year ending March 2029, depending on when construction is completed., ¥10 billion operating profit target: The company intends to build on growth in existing businesses and businesses including Candle and the Philippines cable landing station business, rather than depend on a single large IRU contract., Baler/Poro Point cable landing stations: Discussions are under way with multiple international submarine cable owners. The company described completion and handover of Baler within the year as an important milestone., Wakayama project: The company expects to make a final investment decision around the second quarter of the fiscal year ending March 2027. The timing of revenue recognition has not been determined., InfiniVAN listing: Preparations will continue, but the specific timing will be determined based on market conditions and business progress. |
| New initiatives | Capture demand for communications infrastructure originating from Candle, including cable landing stations, backhaul, interconnection, and data center connectivity, Advance the Open Access CLS policy at the Baler/Poro Point cable landing stations, Explore the development of an international submarine cable landing station business in Wakayama Prefecture, Continue preparations for InfiniVAN’s listing |
Items this document does not state (23)
Net SalesOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsBreakdown of Factors Affecting the ChangeKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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 company withheld information on the line capacity and maintenance contract revenue related to Candle’s IRU contract due to confidentiality obligations. IRU revenue and profit are expected to be recognized in either the fiscal year ending March 2028 or the fiscal year ending March 2029, depending on when construction is completed. The ¥10 billion operating profit target is not dependent on a single large IRU contract, but is intended to be achieved by building on growth in existing businesses and revenue opportunities including Candle and the Philippines cable landing station business.
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.