Okinawa Cellular Telephone Company (9436) Q1 2025 earnings summary

Executive summary

• Operating revenues increased 7.1% year-over-year to 19,812 million yen, driven by growth in Multi-Brand communications, au Denki sales, and higher handset sales and ARPU.

• Operating income declined 3.4% year-over-year to 4,370 million yen due to higher provisions for handset trade-ins, increased sales-related costs, and higher operating expenses in au Denki and mobile sales.

• Net income attributable to owners of parent fell 10.2% year-over-year to 2,987 million yen.

• Mobile, FTTH, and au Denki segments all made steady progress toward full-year forecasts, with notable subscriber growth.

• Capital investment totaled 1,153 million yen, focused on high-speed data transmission, FTTH service equipment, and reflecting a reactionary decline after completing remote island submarine cables.

Financial highlights

• Operating revenues: 19,812 million yen (+7.1% YoY); operating income: 4,370 million yen (−3.4% YoY); recurring profits: 4,373 million yen (−3.8% YoY); net income: 2,987 million yen (−10.2% YoY).

• Net income per share: 61.98 yen (down from 64.09 yen YoY).

• EBITDA decreased 1.7% YoY to 6,062 million yen.

• Free cash flow dropped 66.2% YoY to 3,765 million yen, mainly due to changes in loans to subsidiaries and affiliates.

• Capital expenditures decreased 51.3% YoY to 1,153 million yen.

Outlook and guidance

• Both revenues and income are progressing in line with full-year forecasts, with operating revenue and income at 25% and 27% of annual targets, respectively.

• Full-year forecast unchanged: operating revenues projected at 80,000 million yen (+2.6% YoY), operating income at 17,500 million yen (+2.9% YoY), net income at 12,250 million yen (+1.0% YoY).

• Dividend forecast for FY ending March 2025 is 120 yen per share, up from 110 yen in the previous year.

• No significant impact from COVID-19 anticipated, but ongoing monitoring of economic and competitive conditions.