Decline in Information and Communications Business Revenue Due to Mobile Business Pricing Revisions
First written in FY2022-Q2. 2 of 3 entries say "Materialised", first in FY2022-Q3. Latest entry: FY2023-Q1.
The Kansai Electric Power Company 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 "Materialised".
- FY2023-Q1MaterialisedAnnual report
「On the revenue side, although the mobile business saw a decrease in call revenue and other items, sales to external customers increased by ¥921 million, or 1.8%, year on year to ¥52,059 million, mainly because fuel cost adjustment amounts increased in eo Electricity. Including intersegment sales, sales increased by ¥896 million, or 1.4%, year on year to ¥65,962 million.」
The decrease in call revenue in the mobile business continued to be reported as an actual result. Meanwhile, the information and communications business as a whole recorded higher revenue due to the increase in fuel cost adjustment amounts in eo Electricity. - FY2022-Q3MaterialisedAnnual report
「Although the number of FTTH lines increased due to growth in bundled contracts covering all units in apartment buildings and stronger demand for fixed-line services following the spread of COVID-19, and the number of eo Denki subscribers also increased, revenue from external customers declined by ¥7,173 million, or 4.4%, year on year to ¥155,230 million, mainly because of the impact of applying accounting standards and other rules related to revenue recognition and price revisions in the mobile business.」
The revision of mobile service prices continued to materialize as a factor behind the decrease in telecommunications revenue, and sales to external customers decreased by 4.4% year on year. - FY2022-Q2First statedAnnual report
「On the revenue side, sales to external customers decreased by ¥5,018 million, or 4.6%, year on year to ¥103,423 million, while sales including intersegment sales decreased by ¥5,799 million, or 4.2%, year on year to ¥133,401 million. This was despite an increase in FTTH lines as demand for fixed-line connections grew following the spread of COVID-19, and an increase in eo Electricity subscribers, due to the impact of applying accounting standards related to revenue recognition and revisions to mobile service pricing, among other factors.」
The revision of mobile service prices was disclosed independently for the first time as a factor behind the decrease in telecommunications revenue, alongside the application of the revenue recognition accounting standard and other relevant standards.