reports
- Lindsay Whipp
- Chris Hoare
- Chris Hoare
KDDI (Buy, ¥6,600, +25%) Q3 24 Quick Take: Improving bottom-line; exp...
KDDI reported an improved bottom-line trend, supported by its steady topline and Lawson’s contribution. While mobile ARPU was marginally down in Q3, it was still growing sequentially, and the company anticipates mobile communication ARPU revenue to inflect back to growth in the next quarter on the back of continued up-trading and UQ to AU brand migration.
- Lindsay Whipp
PSA Information Technology / IT Services: NTT Data (9613 JT) – The Dat...
Tags: NTT Corp (9432 JT), Equinix (EQIX US), Iron Mountain (IRM US), Amazon (AMZN US), Microsoft (MSFT US), Google (GOOG US), Digital Realty Trust (DLR US), QTS (owned by Blackstone (BX US)), CyrusOne (owned by KKR (KKR US) and Global Infrastructure Partners (pvt), Cyxtera (owned by Brookfield Infrastructure Partners (BIP US)), Cologix (pvt), Meta (META US), Apple (AAPL US), Oracle (ORCL US), Netflix (NFLX US), Money Forward (3994 JT), Digital Realty Trust (DLR US), DataBridge Group (DBRG US), N...
- Chris Hoare
Japanese Telcos & Internet What to expect in 2025: Mixed
After 3 good years, 2024 was not great for the Japanese incumbents; with KDDI and SoftBank rising modestly and NTT falling, but all underperforming the Nikkei. In our view, risk is rising in Mobile, although we continue to see the sector as fundamentally undervalued. Rakuten performed well in 2024, but this was really to do with balance sheet risk easing on the back of cost cutting/refinancing rather than better traction in Mobile.
- Chris Hoare
Japanese Telcos Q2 FY24 review: Stable growth with better profitabili...
Service revenue slowed for the incumbents but stayed in the low-single digit band, with Softbank still ahead followed by NTT. Mobile divergence continues to play out with SB leading the pack and is likely to remain so in our view. Industry EBITDA improved as NTT inflected to growth and led to a strong EBIT beat this quarter.
- Lindsay Whipp
- Chris Hoare
- Chris Hoare
KDDI (Buy, TP: ¥6,600, +39%) KDDI indicating a structural step up in S...
KDDI today announced an increase in their share buyback from ¥300-¥400bn this year. On the call, the company indicated that this pace could be maintained at least for next year suggesting a structural increase in share buybacks. Thoughts below.
- Chris Hoare
KDDI (Buy, TP: ¥6,600, +39%) Q2 24 Quick Take: Softer against tougher ...
KDDI’s results were okay in Q2 as it was pegged against a tougher comparable. Topline remained ahead of expectations while EBIT was slightly behind YTD though we believe it is likely to improve on the back of DX, synergies from Lawson, mobile and declining roaming losses from Rakuten
- Chris Hoare
NTT DATA Collaborates with Leading Academic Medical System on New Mode...
PLANO, Texas--(BUSINESS WIRE)-- , a global leader in healthcare IT, and Duke Health, a world-class academic and healthcare system, are collaborating to create a highly interactive and technologically advanced model for augmented home care delivery. This new home-care model will integrate multiple technologies, including a GenAI-driven virtual agent from Ellipsis Health, automation, device interoperability, remote patient monitoring and a patient app and portal. The solution will keep medical staff in direct contact with the patient to ensure a human is always in the loop while allowing patien...
- Pelham Smithers
- Chris Hoare
Japanese Telcos - Takeaways from Meetings with the Japanese Telcos + R...
We met with all 3 of the incumbent Japanese Telcos & Rakuten in Tokyo this week. Every time we visit, we are reminded of how much better the telco industry is in Japan vs other DMs, as the MNOs continue to expand their scope of operations beyond traditional telco driving higher returns and growth.
City of Brownsville, Texas, Taps NTT DATA to Build Connected City With...
PLANO, Texas & BROWNSVILLE, Texas--(BUSINESS WIRE)-- a global digital business and IT services leader, has been selected by the , to deploy NTT DATA’s Smart Solutions and Private 5G (P5G) wireless connectivity. The city seeks to enhance citizen services, increase public safety, achieve sustainability and effectively manage growth by leveraging real-time data analytics and AI empowered by a seamless and secure wireless network. “The future is coming to life in Brownsville today as we partner with NTT DATA to set a new standard for smart, connected and sustainable cities,” said John Cowen, Jr...
- Chris Hoare
Japanese Telcos Q1 FY24 review: Softbank outperforming
Incumbents led a faster service revenue growth in Q1 driven by non-mobile, with Softbank ahead. Industry mobile growth kept steady but the continued divergence in mobile trend between NTT and peers appears to confirm the benefits of integrated financial services. Softbank was the notable share gainer this quarter (1.1% MSR gain sequentially), having grown its mobile ARPU for the first time since FY19.
- Chris Hoare
NTT (Buy, TP: ¥240, +61%) Q1 FY24 Quick Take: Profitability largely i...
NTT reported before close today and while revenue was ahead of estimates and guidance, operating income and profit were largely in line with its full year guidance. In contrast to peers, Mobile performance is lagging with ARPU trend not recovering. Separately, the company announced a buyback up to ¥ 200bn (US$ 1.37bn), a positive given the stock’s YTD performance.
- Chris Hoare
KDDI (Buy, TP: ¥6,600, +51%) Q1 24 Quick Take: Solid
KDDI reported after close today, with both topline and EBIT tracking slightly ahead of full year guidance. Enterprise continued to show good momentum and helped support the topline beat. With Lawson delisted since July, the deal is expected to be completed by September, as planned. Multi-brand mobile revenue continues to trend positively, with positive commentary around the transition from UQ mobile to AU brand.
NTT DATA Selected as Prime Contractor for FBI’s Mission Critical Servi...
HERNDON, Va.--(BUSINESS WIRE)-- , a digital business and IT services leader has announced the company was selected as a prime contractor by the Federal Bureau of Investigation (FBI). NTT DATA will provide IT services through the FBI’s Information Technology Supplies and Support Services 2nd Generation (ITSSS-2) Blanket Purchase Agreement (BPA). The ITSSS-2 BPA has an $8 billion ceiling with an eight-year period of performance from June 21, 2024, through June 21, 2032. ITSSS-2 will be the primary contract vehicle for the FBI to obtain critical IT services and be available for use by all compo...
- Chris Hoare
Japanese Telcos Q4 FY23 review: Diverging mobile
Service revenue trends for the three incumbents were faster as mobile inflected, coupled with improvements in non-mobile. Meanwhile, the sector’s EBITDA grew strongly which was well flagged in Q3. Divergence in mobile trend appears to confirm the benefits of integrated financial services with mobile as NTT and peers diverged further; former extended its decline while peers accelerated to near 3% YoY.
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.