Okinawa Cellular Telephone Company (9436) investor relations material

Executive summary

• H1 FY2027 revenue rose 7.8% YoY to ¥45,354 million; operating profit increased 29.3% to ¥12,092 million, and profit attributable to owners of parent rose 26.2% to ¥8,252 million.

• Churn improved for a fourth consecutive quarter, while mobile net additions exceeded the prior-year level for a third consecutive quarter.

• FY2027 guidance was raised to ¥93,000 million revenue, ¥20,900 million operating profit and ¥14,250 million parent-attributable profit.

Financial highlights

• H1 ordinary profit was ¥12,271 million versus ¥9,424 million YoY; EBITDA rose 20.7% to ¥15,108 million.

• Operating revenue increased ¥3,286 million YoY: total mobile revenue +¥1,657 million, handset sales revenue +¥1,141 million and other revenue +¥488 million.

• Operating profit rose ¥2,741 million YoY; organic growth was 13.4% and one-time factors contributed 15.9%.

• An extraordinary investment securities valuation loss of ¥429 million was recorded; reported profit before income taxes was ¥11,841 million excluding this loss.

Outlook and guidance

• FY2027 forecast increased by ¥3,000 million for revenue, ¥1,800 million for operating profit, ¥1,850 million for ordinary profit and ¥1,000 million for parent-attributable profit.

• Revised forecast assumes higher total mobile revenue, handset sales and au Denki sales; higher handset costs are partly offset by lower communication facilities fees.

• Forecast EPS is ¥155.53; projected annual dividend is ¥70 per share, split between ¥35 at Q2 and ¥35 at year-end.

• FY2030 targets include ¥100 billion revenue, growth-area sales above ¥30 billion and EPS growth above 30% vs. FY Mar.25.