Impact of Weak Telecom Carrier Capital Investment and a Stronger Yen on the Telecom Carrier Business
First written in FY2017-Q2. 8 of 23 entries say "Worsened", first in FY2019-Q1. Latest entry: 2026-04-28.
Nec moved to the "Worse" side of this theme in 2019.
0 other companies' latest entry also says "Other".
- 2026-04-28OtherFinancial results presentation
「Telecommunications services: Carried out thorough asset cleanup as part of the review of the base-station business」
In FY2025, adjusted operating profit in telecommunications services fell by ¥30.6 billion year on year due to asset cleanup accompanying the review of the base-station business. For FY2026, the company forecasts higher profit from capturing the benefits of structural reform. - FY2026-H1MitigatedAnnual report
「Adjusted operating profit increased by ¥16.8 billion year on year to ¥28.6 billion, mainly due to higher revenue and cost efficiencies in the telecom services field.」
Cost efficiency advanced in the Telecom Services field, increasing adjusted operating profit in the Social Infrastructure Business by ¥16.8 billion year on year to ¥28.6 billion. Addressing risks related to telecommunications investment and profitability was identified as a factor behind the improvement in performance. - FY2025-H1MitigatedAnnual report
「Revenue from the Social Infrastructure Business increased by ¥9.5 billion, or 2.0%, year on year to ¥485.3 billion, mainly because sales to the aerospace and defense sectors increased. Adjusted operating profit increased by ¥11.3 billion to ¥17.7 billion, mainly because of higher revenue and improved profitability in the 5G business.」
Adjusted operating profit in the Social Infrastructure Business increased by ¥11.3 billion year on year to ¥17.7 billion, mainly because of improved profitability in the 5G business. The results reflect improvements in profitability risks associated with investment by telecommunications operators and 5G investment. - FY2024-Q2MitigatedAnnual report
「Adjusted operating profit increased by ¥13.1 billion year on year to ¥15.8 billion, mainly because of higher revenue, the effects of overseas 5G restructuring, and a decrease in one-time losses recorded in the same period of the previous year.」
The effects of overseas 5G restructuring and the decrease in one-time losses improved adjusted operating profit in the Social Infrastructure Business by ¥13.1 billion year on year, turning it profitable. - FY2023WorsenedAnnual report
「Adjusted operating profit decreased by ¥11.3 billion from the previous consolidated fiscal year to ¥24.1 billion, mainly because of one-time costs related to overseas 5G and higher investment costs.」
Although the Network Services Business recorded higher revenue, adjusted operating profit decreased by ¥11.3 billion because of one-time overseas 5G costs and higher investment costs. - FY2023-Q3MitigatedAnnual report
「Revenue from the Network Services Business increased by ¥10.9 billion, or 3.1%, year on year to ¥361.0 billion, mainly because of growth in the 5G business and patent licensing revenue. Adjusted operating profit deteriorated by ¥16.4 billion year on year to an adjusted operating loss of ¥0.6 billion, mainly because of one-time costs, including those associated with strategic overseas 5G orders, and higher investment costs related to 5G.」
Although the burden of 5G-related costs continued, the Network Services Business recorded higher revenue, and the adjusted operating loss narrowed from ¥13.3 billion for the first 6 months to ¥0.6 billion. - FY2023-Q2WorsenedAnnual report
「Revenue from the Network Services Business decreased by ¥5.9 billion, or 2.6%, year on year to ¥219.6 billion, mainly because capital investment by telecommunications operators remained weak. Adjusted operating profit deteriorated by ¥21.7 billion year on year to an adjusted operating loss of ¥13.3 billion, mainly because of one-time costs recognized for strategic overseas 5G orders, a temporary increase in costs as 5G-related investment was concentrated in the first half of the fiscal year, and lower profit at consolidated subsidiaries.」
While weak capital investment by telecommunications operators continued, one-time costs associated with strategic overseas 5G orders and the concentration of 5G investment in the first half were added to the pressure, resulting in a 2.6% decline in revenue and an adjusted operating loss of ¥13.3 billion. - FY2023-Q1WorsenedAnnual report
「Revenue from the Network Services Business decreased by ¥4.2 billion, or 4.0%, year on year to ¥100.1 billion, mainly because capital investment by telecommunications operators remained weak. Adjusted operating profit decreased by ¥8.4 billion year on year to an adjusted operating loss of ¥8.5 billion, because of lower revenue and higher investment costs related to 5G.」
As weak capital investment by telecommunications operators continued and higher investment costs related to 5G added to the pressure, the Network Services Business recorded lower revenue and adjusted operating profit deteriorated to a loss of ¥8.5 billion. - FY2022WorsenedAnnual report
「Revenue from the Network Services Business decreased by ¥27.3 billion, or 5.1%, from the previous consolidated fiscal year to ¥511.5 billion, mainly because lower revenue at consolidated subsidiaries outweighed growth in the 5G business. Adjusted operating profit decreased by ¥5.7 billion to ¥35.5 billion because of higher investment costs related to 5G and other factors.」
Although the 5G business increased, the Network Services Business recorded lower revenue, and adjusted operating profit deteriorated because of higher investment costs related to 5G. - FY2022-Q3WorsenedAnnual report
「Revenue from the Network Services Business decreased by ¥15.7 billion, or 4.3%, year on year to ¥350.1 billion, mainly because the fixed network field declined. Adjusted operating profit decreased by ¥4.1 billion year on year to ¥15.8 billion, mainly because of higher investment costs related to 5G.」
Amid higher investment costs related to 5G, the Network Services Business recorded a 4.3% decline in revenue because of the decrease in the fixed network field, while adjusted operating profit also deteriorated by ¥4.1 billion. - FY2022-Q2MitigatedAnnual report
「Revenue from the Network Services Business was ¥225.5 billion, largely unchanged year on year, as the expansion of the 5G business offset lower revenue at consolidated subsidiaries. Adjusted operating profit improved by ¥2.2 billion year on year to ¥8.4 billion, despite higher investment costs related to 5G, mainly because of improved profitability.」
Revenue remained broadly unchanged year on year as the 5G business expanded, while adjusted operating profit improved by ¥2.2 billion to ¥8.4 billion despite higher investment costs related to 5G. - FY2022-Q1MitigatedAnnual report
「Revenue from the Network Services Business increased by ¥5.3 billion, or 5.3%, year on year to ¥104.3 billion, mainly because of the expansion of the 5G business. Adjusted operating profit improved by ¥2.0 billion year on year but remained an adjusted operating loss of ¥0.1 billion, mainly because of higher revenue.」
Against the backdrop of the expanding 5G business, revenue from the Network Services Business increased by 5.3% and adjusted operating profit improved by ¥2.0 billion year on year. However, a loss of ¥0.1 billion remained. - FY2021-Q3MitigatedAnnual report
「Revenue from the Network Services Business increased by ¥43.1 billion, or 13.4%, year on year to ¥365.8 billion, mainly because revenue increased in the mobile and fixed network fields against the backdrop of telecommunications operators adopting 5G. Adjusted operating profit increased by ¥6.1 billion year on year to ¥19.9 billion, mainly because of higher revenue.」
Against the backdrop of telecommunications operators adopting 5G, revenue from the Network Services Business increased, while adjusted operating profit improved by ¥6.1 billion year on year to ¥19.9 billion. - FY2021-Q1WorsenedAnnual report
「Revenue from the Network Services Business increased by ¥4.2 billion, or 4.5%, year on year to ¥99.0 billion, mainly because revenue increased at consolidated subsidiaries. Adjusted operating profit, however, decreased by ¥2.0 billion year on year to an adjusted operating loss of ¥2.1 billion, as higher revenue was more than offset by increased investment costs related to 5G and other factors.」
Although revenue increased, adjusted operating profit deteriorated by ¥2.0 billion because of higher investment costs related to 5G, resulting in a loss of ¥2.1 billion. - FY2020-Q3Improvement in the performance of the Network Services BusinessAnnual report
「Revenue from the Network Services Business increased by ¥32.5 billion, or 10.5%, year on year to ¥341.4 billion, mainly because revenue increased, particularly in the fixed network field. Adjusted operating profit increased by ¥8.4 billion year on year to ¥18.1 billion, mainly because of higher revenue.」
Revenue from the Network Services Business increased, led by the fixed network field, while adjusted operating profit improved by ¥8.4 billion year on year to ¥18.1 billion. - FY2019WorsenedAnnual report
「Operating profit decreased by ¥4.1 billion from the previous consolidated fiscal year to ¥13.1 billion because, despite improved profitability in network infrastructure, losses were recognized on certain IT services projects and business structure improvement costs were recorded.」
While the impact of weak investment by telecommunications operators continued, losses on certain IT services projects and restructuring costs reduced operating profit in the Network Services Business by ¥4.1 billion. - FY2019-Q1WorsenedAnnual report
「Revenue from the Network Services Business decreased by ¥0.6 billion, or 0.7%, year on year to ¥77.6 billion, mainly because capital investment by telecommunications operators remained weak. Operating profit decreased by ¥1.6 billion year on year because of higher investment costs for 5G and other factors, resulting in an operating loss of ¥2.2 billion.」
As weak capital investment by telecommunications operators continued, higher investment costs for 5G and other factors, along with a deterioration in the project mix, were identified as new factors behind the deterioration in profit, resulting in an operating loss of ¥2.2 billion. - FY2018Profit deterioration, including restructuring costsAnnual report
「Operating profit decreased by ¥16.0 billion from the previous consolidated fiscal year because of lower revenue and the recognition of overseas restructuring costs, but remained positive at ¥2.0 billion.」
In the Telecom Carrier Business, in addition to lower revenue caused by weak capital investment and other factors, overseas restructuring costs were identified as a factor behind the deterioration in profit. - FY2018-Q3Change in the composition of revenue-decline factorsAnnual report
「Revenue from the Telecom Carrier Business decreased by ¥12.7 billion, or 3.1%, year on year to ¥403.2 billion. Although overseas TOMS (Telecom Operations Management Solutions) increased, Mobile Backhaul (Pasolink) and Marine Systems declined, while capital investment by telecommunications operators in Japan remained weak.」
While weak capital investment by telecommunications operators continued, declines in Mobile Backhaul and Marine Systems were identified as new factors behind the decline in revenue. Overseas TOMS, meanwhile, increased. - FY2018-Q2Specific revenue-decline factors, including the completion of large projectsAnnual report
「Revenue from the Telecom Carrier Business decreased by ¥10.2 billion, or 3.7%, year on year to ¥267.5 billion, mainly because, overseas, the Marine Systems business declined as large projects reached completion, while capital investment by telecommunications operators in Japan remained weak.」
In addition to the continuing weakness in capital investment by telecommunications operators, the completion of large overseas Marine Systems projects was identified as a factor behind the decline in revenue. Revenue decreased by ¥10.2 billion, or 3.7%, year on year. - FY2017RestatedAnnual report
「Revenue from the Telecom Carrier Business decreased by ¥85.9 billion, or 12.3%, from the previous consolidated fiscal year to ¥611.6 billion, mainly because capital investment by telecommunications operators in Japan and overseas remained weak and because of the impact of the stronger yen.」
Weak capital investment by telecommunications operators and the stronger yen were cited as factors that reduced full-year revenue by ¥85.9 billion, or 12.3%. - FY2017-Q3RestatedAnnual report
「Revenue from the Telecom Carrier Business decreased by ¥63.4 billion, or 13.0%, from the previous year to ¥424.1 billion, mainly because capital investment by telecommunications operators in Japan and overseas remained weak and because of the impact of the stronger yen.」
Weak capital investment by telecommunications operators and the stronger yen continued to weigh on revenue from the Telecom Carrier Business. - FY2017-Q2First statedAnnual report
「Revenue from the Telecom Carrier Business decreased by ¥45.2 billion, or 13.8%, year on year to ¥282.9 billion, mainly because capital investment by telecommunications operators in Japan and overseas remained weak and because of the impact of the stronger yen.」
Weak capital investment by telecommunications operators and the stronger yen were identified as actual factors behind the decline in revenue, which decreased by ¥45.2 billion, or 13.8%, year on year.