Daily Brief TMT/Internet: NTT (Nippon Telegraph & Telephone), Mobvoi, Airbnb Inc, Electronic Arts, Global Blue Group Holding AG, Palantir Technologies Inc, Skyworks Solutions, Vection Technologies Ltd and more

• The Kishida administration is looking for funding sources for its two big objectives – 1) raising the birthrate, 2) raising defense spending by 60% in 5yrs to 2% of GDP.
• The second is not new. It was in an “order” PM Kishida gave to FinMin Suzuki and MinDef Hamada last November. They need ¥48trln by end 2027. 
• Yesterday, in an LDP meeting, the idea of changing the NTT Law so the government could sell more NTT shares was mooted. It’s worth thinking about.

• Mobvoi (2185047D CH) is looking to raise about US$200m in its upcoming Hong Kong IPO. The deal will be run by CICC and CMBI.
• Mobvoi is an AI company with a focus on generative AI and voice interaction technologies.
• As per CIC, the firm is the largest revenue-generating AI company focusing on AI-generated content (AIGC) technologies in terms of 2022 revenue from AIGC solutions.

• Airbnb delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.
• The company experienced significantly high bookings, with over 120 million Nights and Experiences Booked in Q1.
• Revenue grew significantly year-over-year, and the quarter was the most profitable GAAP-based.

• Electronic Arts managed to surpass the revenue expectations as well as the earnings expectations of Wall Street in its recent quarterly result.
• The fiscal year 2023 saw EA SPORTS FIFA thrive, with double-digit growth in net bookings and FIFA 23 becoming the best-selling title in franchise history.
• We give Electronic Arts Inc. a ‘Hold’ rating with a revised target price.

• Global Blue is the leader in tax refunds for tourism shopping.
• The company provides the backend for refund processing, which includes software installed at merchants and service locations like kiosks and counters at airports, among other services.
• Global Blue helps to streamline the refund process, reducing the burden for merchants and shoppers.

• Palantir Technologies delivered an all-around beat in the most recent quarterly result with solid revenue growth driven by the U.S. commercial business and disciplined spending management.
• Their commercial segment saw significant revenue growth, while the government showed strength.
• Their expanding adjusted operating margins and strong cash flow generation highlight their ability to manage costs while driving revenue growth effectively.

• It was a decent second quarter for Skyworks as the results were on par with the analyst consensus estimates.
• The market trends, such as the growth of WiFi and electric vehicles, present significant growth potential for Skyworks.
• With its successful second-quarter performance, Skyworks’ expanding customer relationships, global scale, and efficient cash flow engine position them well for future growth opportunities in the rapidly evolving connectivity landscape.

Vection Technologies (VR1) recently announced that its ChatGPT-powered mixed reality solution, 3D Frame, will now be available on Apple’s macOS. The release further highlights the interoperability of VR1’s technology with global powerhouses in the virtual (VR) and augmented (AR) reality space, positioning it well to capitalise on the latest breakthrough advancements, such as Apple’s Vision Pro AR headset. 3D Frame’s cross-platform compatibility with Windows and macOS should ensure wider availability across devices and reaffirms VR1’s position as a major player in the field. Management also announced the proposed acquisition of Invrsion, which it expects to be immediately earnings accretive and brings with it a portfolio of tier 1 customers, including Walgreens, Coca-Cola and Diageo.