Internet Initiative Japan - New Pricing Plans Are Competitive and Impact Is Manageable

Internet Initiative Japan - Potential Growth Remains Under-Appreciated (Initiation of Coverage)

Internet Initiative Japan Q4 20 Results – Blowout Quarter / Guidance and Massive Dividend Hike

Internet Initiative Japan - Q2 20 Results: Profitability Beat Drives Guidance Upgrade, Dividend Hike

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

Internet Initiative Japan / Equity Bottom-Up

<p>There are two stories in the Q3 20 results report from IIJ. The first is the positive B2B story as corporate demand driven by digitization accelerates. Sales to enterprise customers remain robust (mobile +6%, cloud +11%, security +12%) and that upside is easier to see with IIJ than other telecom companies with a larger consumer base. The second is confidence in potential margin improvement as higher revenue is layered over a fixed cost base. Q3 revenue grew 6% and whilst that is the best in four quarters, it is the corresponding EBITDA (+34%) and operating profit (+80%) growth that catch the eye.  The end result is a second management upgrade to the full-year outlook in as many quarters. </p>

There are two stories in the Q3 20 results report from IIJ. The first is the positive B2B story as corporate demand driven by digitization accelerates. Sales to enterprise customers remain robust (mobile +6%, cloud +11%, security +12%) and that upside is easier to see with IIJ than other telecom companies with a larger consumer base. The second is confidence in potential margin improvement as higher revenue is layered over a fixed cost base. Q3 revenue grew 6% and whilst that is the best in four quarters, it is the corresponding EBITDA (+34%) and operating profit (+80%) growth that catch the eye.  The end result is a second management upgrade to the full-year outlook in as many quarters. 

Internet Initiative Japan Q3 20 Results: A Second FY20 Guidance Upgrade Highlights Margin Confidence