Risk of Downward Revisions to Contract Unit Prices Due to Mobile Phone Charge Cuts
First written in FY2020. 2 of 6 entries say "Softened", first in FY2022. Latest entry: FY2025.
Tobila Systems moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 8 of 14 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「In addition, the Company is focusing on expanding its solutions business, which is not dependent on sales to major domestic telecommunications carriers, in order to reduce customer-concentration risk.」
To address the risks of dependence on telecommunications carriers for contract unit prices and revenue, the Company explicitly stated that it would expand the solutions business to reduce this dependence. - FY2024RestatedAnnual report
「The Company maintains good relationships with major domestic telecommunications carriers by regularly providing reports on special fraud and phishing scams based on its own research. In addition, cooperation with all 3 major telecommunications carriers enables the early detection and sharing of trends in nuisance-call and SMS blocking, providing differentiation. The Company is also focusing on expanding businesses such as TobilaPhone Biz outside its mobile services to reduce customer-concentration risk.」
The Company continues to recognize the risks of dependence on telecommunications carriers and changes to contract terms, and identified report provision, cooperation with the 3 major carriers and expansion of corporate businesses as countermeasures. - FY2023SoftenedAnnual report
「Because we depend on telecommunications carriers for approximately 70% of our revenue (17th fiscal year), any downward revision to contract unit prices could affect future earnings.」
Revenue dependence on telecommunications carriers declined from 74.8% or more in the previous fiscal year to approximately 70%. - FY2022SoftenedAnnual report
「The nuisance-call filtering service provided by the Company effectively has no competitors or alternatives, and we believe the likelihood of substitution by other companies or price competition with them is low. However, as the Company depends on telecommunications carriers for 74.8% or more of its revenue (fiscal year 16), any downward revision to contract unit prices could affect future earnings.」
The Company stated that its revenue dependence on telecommunications carriers had declined from 80% or more in the previous fiscal year to 74.8% or more. It identified expanding alliances and launching new and adjacent businesses as measures to address the dependency risk. - FY2021WorsenedAnnual report
「As the Company depends on telecommunications carriers for 80% or more of its revenue (current fiscal year), any downward revision to contract unit prices could affect future earnings.」
The Company stated that its dependence on telecommunications carriers for revenue was 80% or more in the current fiscal year, up from 77% or more in the previous fiscal year, indicating a higher quantified dependency risk. - FY2020First statedAnnual report
「If the earnings of telecommunications carriers deteriorate due to lower mobile phone rates, among other factors, the carriers may request downward revisions to the unit prices under their contracts with us. ... As the Company depends on telecommunications carriers for 77% or more of its revenue (fiscal year 14), any downward revision to contract unit prices could affect future earnings.」
The Company newly identified government-led reductions in mobile phone rates as a risk that could lead to downward revisions to contract unit prices, linking it to its dependence of 77% or more on telecommunications carriers.