Decrease in overseas telecommunications sales following the end of the IRU revenue recognition period
First written in FY2020-Q2. 5 of 19 entries say "Advanced", first in FY2023-Q2. Latest entry: 2026-05-08.
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- FY2025AdvancedAnnual report
「The Group diversified its business by expanding not only major transactions but also sales of smaller-capacity circuits, while sales of telecommunications equipment combined with network services also remained firm.」
The International Telecommunications Business expanded its revenue sources beyond major IRU projects to include smaller-capacity circuit sales and telecommunications equipment sales. Revenue in the fiscal year ending March 2025 was ¥11,219 million, up 32.9% from the previous fiscal year. - FY2025-H1Higher revenue and profit driven by growth in PDSCN-related earningsAnnual report
「In addition to continuing efforts to promote sales of C2C circuits on the Group's international telecommunications network, for which it holds usage rights, the Group expanded service provision through PDSCN to regional telecommunications operators and other customers, and sales of PDSCN-related telecommunications equipment also remained strong. Overall, the business exceeded plan, resulting in increases in revenue and profit. As a result, revenue was ¥5,423 million, up 130.8% year on year, and segment profit was ¥2,183 million, up 521.5%.」
In the International Telecommunications Business, services provided through PDSCN to regional telecommunications operators and related telecommunications equipment sales expanded in addition to C2C circuit sales, resulting in revenue and profit growth above plan. - FY2024-Q3Continued declines in revenue and profit due to the reversal of a major IRU paymentAnnual report
「Although revenue was recognized from sales of telecommunications equipment and other items, revenue and profit declined because revenue in the same period of the previous fiscal year included a payment received for a major IRU project for C2C circuits. As a result, revenue was ¥3,950 million, down 9.2% year on year, and segment profit was ¥659 million, down 47.7%.」
The International Telecommunications Business recognized revenue from telecommunications equipment sales and other items. However, due to the reversal of the previous year's recognition of a payment received for a major IRU project for C2C circuits, revenue for the nine months ended the third quarter was ¥3,950 million and segment profit was ¥659 million, representing declines in both revenue and profit. - FY2024-Q2Declines in revenue and profit due to the reversal of a major IRU payment received in the same quarter of the previous fiscal yearAnnual report
「Although revenue was recognized from sales of telecommunications equipment and other items, revenue and profit declined because revenue in the same period of the previous fiscal year included a payment received for a major IRU project for C2C circuits. Results nevertheless exceeded the initial full-year plan. As a result, revenue was ¥2,349 million, down 16.6% year on year, and segment profit was ¥351 million, down 60.2%.」
The International Telecommunications Business recognized revenue from telecommunications equipment sales and other items and exceeded the initial plan. However, due to the reversal of the previous year's recognition of a payment received for a major IRU project for C2C circuits, revenue was ¥2,349 million and segment profit was ¥351 million, representing declines in both revenue and profit. - FY2024-Q1Declines in International Telecommunications revenue and profit due to the absence of a lump-sum paymentAnnual report
「In the International Telecommunications Business, the Group continued to strengthen sales of C2C circuits on its international telecommunications network, for which it holds usage rights, and sought to expand its recurring-revenue business. It also took proactive measures, including increasing its sales staff, to attract more corporate customers for its internet connectivity services. However, revenue and profit declined during the quarter because there was no revenue recognition from the lump-sum payment received for an IRU project for C2C circuits in the previous fiscal year.」
The Group continued strengthening C2C circuit sales and expanding its recurring-revenue business, and increased sales staff for its corporate connectivity services. Meanwhile, the lump-sum payment for an IRU project received in the same quarter of the previous fiscal year was absent in the current quarter, resulting in declines in revenue and profit in the International Telecommunications Business. - FY2023-Q3AdvancedAnnual report
「During the nine months ended the third quarter, the International Telecommunications Business increased earnings by capitalizing on growing demand for telecommunications circuits in the Philippines, strengthening sales of C2C circuits on the Group's international telecommunications network, for which it holds usage rights, and expanding its recurring-revenue business. As a result, revenue for the nine months ended the third quarter was ¥3,567 million, up 106.3% year on year, and segment profit was ¥1,143 million, up 208.6%.」
Strengthened C2C circuit sales and expansion of the recurring-revenue business translated into higher earnings, resulting in substantial increases in revenue and profit in the International Telecommunications Business. - FY2023-Q2AdvancedAnnual report
「During the six months ended the second quarter, the Group continued to strengthen sales of C2C circuits on its international telecommunications network, for which it holds usage rights, and sought to expand its recurring-revenue business. Circuit provisioning progressed smoothly, and revenue was also recognized in the second quarter from payments received for an IRU project for C2C circuits, resulting in substantial increases in revenue and profit above plan. As a result, revenue was ¥2,368 million, up 149.1% year on year, and segment profit was ¥786 million, up 328.0%.」
C2C circuit provisioning progressed smoothly, and payments received for an IRU project resulted in substantial increases in revenue and profit above plan. Revenue in the International Telecommunications Business was ¥2,368 million, and segment profit was ¥786 million. - FY2023-Q1Substantial revenue growth from IRU project receiptsAnnual report
「In the International Telecommunications Business, the Group continued to strengthen sales of C2C circuits on its international telecommunications network, for which it holds usage rights, and sought to expand its recurring-revenue business. During the quarter, revenue was also recognized from payments received for an IRU project for C2C circuits contracted in the previous fiscal year, resulting in substantial increases in revenue and profit.」
The Group continued strengthening C2C circuit sales and expanding its recurring-revenue business. Revenue recognized from payments received for an IRU project contracted in the previous fiscal year contributed to revenue of ¥1,191 million and segment profit of ¥392 million in the International Telecommunications Business. - FY2022Additional circuits and commencement of carrier's carrier services alongside timing of revenue recognitionAnnual report
「In November 2021, the Group additionally acquired usage rights under an IRU contract for C2C circuits connecting the Philippines and Hong Kong. In December 2021, it began providing services to a major telecommunications operator as a carrier's carrier. Although the capacity provided increased substantially as a result, revenue declined because fewer projects were recognized on a cash-receipt basis than in the previous fiscal year.」
In the International Telecommunications Business, capacity provided increased substantially and services to a major telecommunications operator commenced. However, revenue was ¥3,684 million, down 13.5% from the previous fiscal year, due to a decrease in projects recognized on a cash-receipt basis. - FY2022-Q3Cumulative revenue decline and recognition of a major project in the fourth quarterAnnual report
「The new major carrier's carrier project for the fiscal year ending March 2022 is scheduled to be recognized in the fourth quarter.」
The International Telecommunications Business recognized annual circuit fees for major C2C circuit projects, which are paid once a year, and recognition of the new major carrier's carrier project was also postponed to the fourth quarter. As a result, cumulative revenue was ¥1,729 million and segment profit was ¥370 million. - FY2022-Q2Cumulative revenue growth and postponement of new project recognitionAnnual report
「During the six months ended the second quarter of the current fiscal year, the Group expanded sales of its international telecommunications network. A project scheduled for the period, involving the acquisition of new telecommunications circuits by a Group company and their provision to telecommunications operators as a carrier's carrier, is now expected to be recognized in the fourth quarter of the fiscal year ending March 2022. However, sales contracts and capacity provided for C2C circuits to CATV operators and other customers increased steadily. As a result, revenue for the six months ended the second quarter was ¥950 million, up 25.8% year on year, while segment profit was ¥183 million, down 30.9%.」
Sales of the international telecommunications network and the number of C2C circuit contracts and capacity provided increased, while recognition of the planned new circuit acquisition and carrier's carrier project was postponed to the fourth quarter of the fiscal year ending March 2022. Cumulative revenue in the International Telecommunications Business was ¥950 million, and segment profit was ¥183 million. - FY2022-Q1Temporary revenue decline due to the IRU contract transition and delays in activationAnnual report
「During the quarter, revenue and profit declined because lease projects for major customers were switched to IRU contracts for C2C circuits, changing the timing of revenue recognition from monthly to once a year in the second half, while activation of the circuits was delayed due to the COVID-19 pandemic. The number of contracts and the capacity provided, however, are increasing in line with the annual plan.」
The switch to IRU contracts for C2C circuits changed the timing of revenue recognition from monthly to once a year in the second half. Delays in activation work due to the COVID-19 pandemic also contributed to declines in revenue and profit. Meanwhile, the number of contracts and the capacity provided are increasing in line with the annual plan. - FY2021-Q3Revenue growth following the launch of C2C circuitsAnnual report
「As a result, revenue was ¥3,324 million, up 249.4% year on year, and segment profit was ¥1,056 million, up 193.7%.」
The International Telecommunications Business, including the launch and commencement of services for C2C circuits, generated revenue of ¥3,324 million and segment profit of ¥1,056 million, representing substantial year-on-year increases in both revenue and profit. - FY2021-Q2Return to cumulative revenue growthAnnual report
「As a result, revenue was ¥755 million, up 17.3% year on year, and segment profit was ¥265 million, up 12.1%.」
The International Telecommunications Business, which reported a full-year revenue decline in the previous fiscal year due to the end of the IRU revenue recognition period, lower unit prices under new leases and the shift toward short-term leases, recorded revenue growth of 17.3% year on year and segment profit growth of 12.1% in the six months ended the second quarter of the current fiscal year. - FY2020Full-year revenue decline confirmedAnnual report
「During the current fiscal year, revenue declined because services provided to cable television operators around Manila consisted mainly of short-term international circuit leases with one-year contract terms, while it took time to begin supplying cable television operators in regional areas, where higher unit prices were expected.」
Following the end of the IRU revenue recognition period and the decline in lease unit prices, the shift toward short-term leases and delays in supplying regional customers also contributed to the decline. International Telecommunications Business revenue was ¥1,271 million, down 16.0% from the previous fiscal year. - FY2020-Q3Additional revenue-decline factorAnnual report
「The International Telecommunications Business during the third quarter of the current fiscal year was affected by the end of the revenue recognition period for IRUs entered into three years earlier and by lower unit prices under new lease agreements.」
In addition to the end of the IRU revenue recognition period, lower unit prices under new lease agreements were cited as factors behind the decline in International Telecommunications Business revenue. Revenue was ¥951 million, down 18.5% year on year. - FY2020-Q2First statedAnnual report
「In the International Telecommunications Business during the second quarter of the current fiscal year, revenue declined due to the end of the revenue recognition period for IRUs entered into three years earlier. In the Manila area, however, the household broadband market has expanded against a backdrop of rising income levels, benefiting telecommunications operators.」
The end of the revenue recognition period for previously executed IRUs was cited as a factor behind the decline in International Telecommunications Business revenue, while the expansion of the household broadband market in the Manila area was also reported.