IIJ Revises its Full-Year Financial Target for FY2014 by the Revision of Wholesale Telecommunications Service Charge of NTT D...
March 24 2015 - 2:20AM
Internet Initiative Japan Inc. ("IIJ") (Nasdaq:IIJI) (TSE1:3774)
announced today that given the revision of wholesale
telecommunications service charge of NTT Docomo, Inc. ("Docomo"),
IIJ has revised its full-year financial target for the fiscal year
ending March 31, 2015 ("FY2014") from the target announced on
November 7, 2014.
1. Revision for the Consolidated Financial Target for
full FY2014
Full FY2014 (From April 1, 2014
to March 31, 2015) |
|
|
|
|
|
|
|
Total Revenues |
Operating Income |
Income before Income Tax
Expense(Benefit) |
Net Income attributable to IIJ |
Basic Net Income attributable to IIJ
per Share |
|
JPY millions |
JPY millions |
JPY millions |
JPY millions |
JPY |
Previous Target (A) |
122,000 |
6,500 |
6,500 |
4,000 |
87.07 |
New Target (B) |
123,000 |
5,050 |
5,150 |
3,100 |
67.48 |
Change (B-A) |
1,000 |
(1,450) |
(1,350) |
(900) |
-- |
Change (%) |
0.8% |
(22.3%) |
(20.8%) |
(22.5%) |
-- |
<Reference> FY2013 Actual |
114,272 |
5,723 |
6,275 |
4,442 |
100.26 |
The year-end dividend target remains unchanged from JPY11.00
announced on May 15, 2014.
2. Reason for Revision
IIJ provides mobile communications service through an MVNO
(Mobile Virtual Network Operator) scheme by purchasing mobile
infrastructure from Docomo.
Docomo calculates connection charge, a flat-rate per Mbps which
is the same charge for all of its MVNOs, every year based on its
actual costs in a previous year, along with the "Telecommunications
Business Law" and the "Guidelines related to Operation of the
Institution for Category II Designated Telecommunications
Facilities*1" which are administrated by the Ministry of Internal
Affairs and Communications. The connection charge had continuously
decreased every year, its decreased rate*2 became larger in recent
years, and it decreased by 56.6% last fiscal year.
Docomo calculated the connection charge for FY2014 based on its
FY2013 actual costs. IIJ recognized that the connection charge for
FY2014, which should be applied to our fiscal year ending March 31,
2015, has decreased, but the decreased rate was smaller than the
past years' results and our anticipation, which is incorporated in
our previous disclosed operating income target of JPY6.5 billion.
As a result, our network services' cost for FY2014 is estimated to
be approximately JPY1.26 billion*3 larger than our estimation and
it shall adversely impact our income results in the same
amount.
*1 The Guidelines, which were established in 2010 and revised in
2014, set forth clear rules for the calculation methods of
connection charges and relevant matters of telecommunications
carriers setting up category II designation telecommunications
facilities. (Source:
http://www.soumu.go.jp/main_sosiki/joho_tsusin/eng/Releases/Telecommunications/140311_02.html)
*2 Decreased rate in connection charge for a fiscal year is
defined as the percentage of decreased amount of connection charge
in comparison with the connection charge in a previous year.
Decreased rate in recent years is as follows: 56.6% (FY2013), 41.2%
(FY2012), 35.1% (FY2011)
*3 The breakdown of JPY1.26 billion is as follows: approximately
JPY0.20 billion and approximately JPY0.64 billion come from the gap
between our actual and our estimated connection charge, based on
Docomo's FY2013 costs, which should be applied to our network
services' costs for FY2013 and FY2014, respectively. Approximately
JPY0.42 billion comes from the impact of not recognizing the
decrease amount of connection charge based on our preliminary
estimate, based on Docomo's FY2014 costs, which should be applied
to our network services' costs for FY2014.
(*) The above target for FY2014 consolidated financial results
is based on information available at the time of the announcement
and the actual results may differ from the target due to various
factors.
CONTACT: Company name: Internet Initiative Japan Inc.
Company representative: Eijiro Katsu, President and
Representative Director
(Stock Code Number: 3774, The First Section of the
Tokyo Stock Exchange)
Akihisa Watai, Managing Director and CFO
TEL: 03-5205-6500
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