Notice Regarding Upward Revision of the Full-Year Financial Targets for the Fiscal Year ending March 31, 2021
TOKYO, Feb. 08, 2021 (GLOBE NEWSWIRE) -- Internet Initiative Japan Inc. (“IIJ”, TSE1: 3774) announced revision of the full year financial targets for the fiscal year ending March 31, 2021 (“FY2020”, April 1, 2020 to March 31, 2021) based on IIJ’s recent business performance trends.
1.Revision for the Consolidated Financial Targets for FY2020 (From April 1, 2020 to March 31, 2021)
| Revenues | Operating Profit | Profit before Tax | Profit for the year attributable to owners of the parent | Basic earnings per share | |
| JPY millions | JPY millions | JPY millions | JPY millions | JPY | |
| Previous Targets (A) | 212,000 | 11,300 | 10,000 | 6,100 | 67.63 |
| New Targets (B) | 213,000 | 13,500 | 12,300 | 7,600 | 84.26 |
| Change (B-A) | 1,000 | 2,200 | 2,300 | 1,500 | |
| Change (%) | 0.5 | 19.5 | 23.0 | 24.6 | |
| < Reference > FY2019 Results (From April 1, 2019 to March 31, 2020) | 204,474 | 8,225 | 7,159 | 4,007 | 44.441 |
2. Reasons for Revision
In FY2020, as Japanese enterprises’ utilization of ICT2 related services advances, our enterprise recurring revenue3 growth has been exceeding our expectation and gross profit of network services has largely been increasing. Based on this, we revised our full-year financial targets for FY2020 on November 9, 2020 when we announced our first half of FY2020 financial results.
In the third quarter of FY2020, the growth of our enterprise recurring revenue continued to be strong, and further profit growth can be expected. In addition, we now have better visibility about the scale of system integration revenue and its profit, which tends to be recorded largely in the fourth quarter every year. Lastly, there was also a decrease in cost of network services due to mobile unit charge revised by Mobile Network Operators (MNOs) based on their FY2019 results. As a result, we revised our full-year financial targets for FY2020 for the second time.
As for dividend forecast revision along with the financial target upward revision, it will be considered when FY2020 profit for the year attributable to owners of the parent is fixed.
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1 IIJ conducted a stock split at a ratio of two-for-one with an effective date of January 1, 2021. Accordingly, the basic earnings per share is calculated as if the stock split was conducted at the beginning of the previous consolidated fiscal year.
2 ICT (Information and Communication Technology) is a general technological term for hardware, software, systems and data communication tools used for information communication by computers.
3 Enterprise recurring revenue: Enterprise recurring revenue is recurring revenue which excludes Internet connectivity services revenue for consumer and MVNE revenue. Recurring revenue is revenue that businesses can count on receiving every single month through continuous provision of services to customers.
< About Internet Initiative Japan Inc. >
Founded in 1992, IIJ is one of Japan's leading Internet-access and comprehensive network solutions providers. IIJ and its group companies provide total network solutions that mainly cater to high-end corporate customers. IIJ's services include high-quality Internet connectivity services, mobile services, security services, cloud computing services, and systems integration. Moreover, IIJ operates one of the largest Internet backbone networks in Japan that is connected to the United States, the United Kingdom and Asia. IIJ listed on the First Section of the Tokyo Stock Exchange in 2006.
< IIJ Investor Relations >
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< Disclaimer >
Statements made in this press release regarding IIJ’s or managements’ intentions, beliefs, expectations, or predictions for the future are forward-looking statements that are based on IIJ’s and managements’ current expectations, assumptions, estimates and projections about its business and the industry. These forward-looking statements, such as statements regarding revenues, operating and net profitability are subject to various risks, uncertainties and other factors that could cause IIJ’s actual results to differ materially from those contained in any forward-looking statement.
