IIJ FY profit grows 21.6% on strong MVNO traction

16 May 2016

Internet Initiative Japan (IIJ) has reported a 21.6% increase in net profit for the financial year ending in March as a result of strong expansion in the MVNO and cloud services sectors.

Net income reached 4 billion yen, on the back of a 14.3% increase in revenue to 140.6 billion yen.

Network services revenue increased by 14.9% to 79.29 billion yen, with consumer connectivity revenue surging 85.5% year-on-year to 15.26 billion yen. Enterprise revenue increased a more modest 7.6% to 17.59 billion yen.

Systems integration revenue expanded 12.3% to 54.19 billion yen and equipment sales ballooned by 51.1% to 3.27 billion yen.

IIJ's MVNO operations recorded strong subscriber growth, helping the company establish a solid position in the market.

The operator meanwhile launched a new cloud service platform in Japan, and established cloud operations in Indonesia and Thailand in partnership with local business operators.

For the current financial year, IIJ aims to increase its revenue by 13.1% year-on-year to 159 billion yen by increasing the operator's mobile and cloud revenue. Operating income is expected to increased by 18.9% to 7.3 billion yen.

“We believe that FY2015’s strong revenue growth trend has contributed in creating the foundation for our middle term growth. Under such momentum, we established [a] middle term business plan from FY2016 to FY2020,” IIJ COO and president Ejiro Katsu said.

“The plan, which aims to increase the revenue to approximately 250 billion yen at FY2020 and maintain double-digit annual operating income growth YoY, is a challenging one for us, yet we firmly believe the market growth opportunity is tremendous. We seek to execute our business expansion strategies accordingly.”

IIJ was Japan's first ISP, and has since expanded to become a full-service operator, providing network services, cloud computing, WAN, systems integration and MVNO services.

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