Internet Initiative Japan Inc. (IIJIY) announced a decline in its first-quarter profit, reporting a drop of 18.4 percent compared to the previous year. The company’s profit attributable to owners of the parent stood at 3.58 billion yen, down from 4.39 billion yen. Earnings per share also experienced a decrease, amounting to 19.91 yen compared to 24.19 yen in the previous year.
Despite the decline in profit, operating profit only edged down 0.5 percent from the previous year to 5.0 billion yen. This indicates that the company has been able to manage its costs effectively. Meanwhile, total revenues for the first quarter of this year reached 61.4 billion yen, marking a 5.6 percent increase compared to the previous year. Notably, network services revenues excluding mobile services grew by 11.1 percent.
For the first half of the fiscal year, Internet Initiative Japan forecasts a steady growth trajectory. The company projects an attributable profit of 8.9 billion yen, representing a 2.5 percent increase from the previous year. Additionally, operating profit is expected to reach 13.4 billion yen, reflecting a growth rate of 20 percent. Total revenues for the first half are projected to reach 138 billion yen, indicating a 13.1 percent increase.
Looking further ahead to fiscal year 2023, Internet Initiative Japan remains confident in its growth prospects. The company anticipates an attributable profit of 20.7 billion yen, reflecting a 10 percent increase from the previous year. Similarly, operating profit is projected to reach 31.5 billion yen, representing a 15.7 percent growth rate. Total revenues for the fiscal year are expected to reach 286 billion yen, a 13.2 percent increase from the prior year.
Although the company’s shares in Japan experienced a decline of 4.61 percent, investors should consider the long-term growth potential indicated by the company’s projections. Internet Initiative Japan has set ambitious targets for the coming years, with a focus on profit and revenue expansion.
In summary, Internet Initiative Japan reported a decrease in its first-quarter profit, but managed to maintain steady growth in its operating profit and experienced an overall increase in total revenues. The company’s optimistic projections for the first half of the fiscal year and fiscal year 2023 indicate its commitment to continued expansion and profitability. Investors and stakeholders will closely monitor the company’s performance in the coming months to assess its ability to achieve its targets and deliver on its growth plans.
