Q3 2024 KDDI Corp Earnings Call
And those quakes underpinned beliefs, we offer a heartfelt support.
Katie do you all have been.
Working with related parties to quickly restore telecommunication services and support.
From the left to four early restoration unsecured communication of base stations, we have been providing 200 units for portable existing base stations utilizing Starlink. In addition, we provided 550 units styling to vacation centers and disaster response agencies. There has been an N O Corporation with NTT Docomo.
Mutual utilization in base stations on ships, what Softbank, a mutual utilization in oil refueling basis, helping carried out to moving to the right out evacuation centers, we are providing wireless lan and charging facilities to help we evacuated feel safer.
We continue our activities for full restoration.
Now, let me focus on the third quarter business results first on consolidated results.
In the third quarter of the fiscal year ending in March 2020 for cumulative results enjoyed increased revenues and income. The left shows operating revenues, which were four 2 billion $265 5 billion again up two points year, representing year on year. The progress ratio at 78, 5%. The REIT is operating income which was <unk>.
$847 9 billion yen up 0.4% year on year progress ratio, what 78, 5% of them, we'll continue to aim for full year forecast.
Next on taxes for change in the consolidated operating income steady growth in focused areas overcame a decrease in rock and roaming revenue.
From the left to group a N V and <unk> revenue and directly down roaming revenue, while minus 31 billion in multi brand communications auto revenues were minus 70 million. Yeah. Gx was plus 11 3 billion again for financial business there was a temp.
Barry accounting impacting FY 2023, which was minus $18 2 billion. Excluding that the result was plus 12 2 billion yen energy business was plus 12.2 billion yen as a result operating income was $847 9 billion up.
$3 2 billion yen year on year.
Next concerns multi brown to auto revenues the leftist shows the accumulative of communications out the revenues from the first through the third quarter in FY March 2020 for flat year on year higher revenues expected in the fourth quarter. The right shows total ARPA revenues, which Oh.
On the upward trend quarterly.
Next onto business segment.
The left shows operating revenues, which were driven by next to cool with plus 34% year on year.
Moving to the right operating income where our growth was led by Iot and data centers.
Mobile communications revenue also increased third quarter year on year result was 11.4% percent first through the third quarter. Cumulative result was seven 7% growth. We are steadily expanding the income increase and continue to aim for a full yet Doug.
<unk> digit growth.
Next let me share with you our satellite growth strategy. It was a further growth orbit.
First on <unk> communications.
We'll focus on sustainable revenue growth and network quality improvement.
This is five G communications growth strategy promote initiatives in both communications and value added services and aimed at maximizing total ARPA revenues and lifetime values. Please look at the left regarding communications up of revenues with the attractiveness of au promotion of data usage and building.
High quality network, we will further grow the revenues.
Moving to the right K DDR has a track record on strength in providing value added services, such as finance energy and entertainment. We will further expand these services.
Please look at the bottom in addition to promoting these airports and trying to enhance customer engagement.
We will utilize data driven generative AI and partnering to expand customer contact points.
Sure.
Next this shows communications business momentum the left shows multi brand Ids, which have been moving favorably.
<unk>.
31.206 million.
Initial target of.
31 million by the end of the term has been achieved ahead of schedule.
We see an increasing new contracts, especially for U can mobile and au to Youku mobile migration slowed.
We are strengthening our initiatives to continue to be chosen by customers, including attractiveness of au and higher network quality.
Next our multi branded upper.
It maintained its upward trend in both communications and value added ARPA. The left shows communications AVO, which was 3000 990 million up 30 and quarter on quarter with an increase of data use our pool of au and you can mobile glu in a you have about 80% select unlimited use.
Each plant in UK mobile over 70% selected.
Medium and large plans.
The rideshare is value added ARPA, which was 1270 yen up 'twenty, yes quarter on quarter.
Product support related knees increased two while increases in credit card and mortgage loans are driving growth.
Yeah.
To raise the attractiveness of a U we are expanding bundled service of telecommunication plus value added that meet customers' needs as shown on the left customers' needs are changing in line with the changes in service use environment demand for data is growing with the developer.
A five G and interest in asset building is also growing partly due to the new Nissan.
On the right we are maximizing the value provided by expanding our bundled services in response to those changes the au money activity plan launched in September last year has been well received and we are enjoying strong subscriber growth.
Through these initiatives.
We aim to increase <unk> and reduce the churn rate.
Next is on our efforts to improve network quality.
<unk> has long been deploying five G areas along customers lifeline to connect their daily lives.
As shown on the left we are accelerating area expansion and plan to open approximately 90000 base stations by the end of March.
In addition, <unk> is working to enhance the quality of the customer experience by strengthening the <unk> area and communication quality.
Right side.
Sub six frequencies will be fully utilized in FY 2024, enabling high speed large capacity and low latency communications over a wider area.
We are planning to deploy the largest number of sub six base stations in the industry. This fiscal year, and we'll refine our communication quality further.
We are also promoting efforts to respond to diversification of youth scenes by utilizing Starlink left side, we are creating areas, where we stay close to customers extraordinary scenes, such as mountains festivals narrow time and disasters.
We are now planning to start handling starlink in au shops to meet customers' needs for disaster measures.
Right side rigor.
Regarding direct communication between satellite and smartphone.
Spacex launched six satellites compatible with direct communication and succeeded in the communications test in January this year.
Toward the start of service in 2024, we will promote verification with Spacex and telecom carriers and government in each country.
Yeah.
Next is Dx.
K DDI business will expand customer contact points and promote partnering.
To strengthen our corporate business in Japan, and overseas, we launched a new corporate business brand S. K DDI business to accelerate our customers' Dx promotion.
Right side.
<unk> strength is the large number of domestic and overseas customer contact points, such as Iot mobile and data centers and the operational system, we have cultivated over the years.
We will promote value added data business by combining the vast amount of data obtained from those customer contact points with abundant group assets and AI and data infrastructure. We will also strengthen partnering to create industry specific Dx solutions.
K DDI business will contribute to customers' Dx promotion and the resolution of social issues.
Iot and data centers, which serve as customers contact points to support the data business are expanding globally left side the number of Iot connections exceeded.
$45 5 million combined with SURA com.
<unk> on a standalone basis exceeded $39 5 million achieving its initial target ahead of schedule.
Growth in connected cars has been particularly strong the entire group will continue to aim for further extension.
Right side.
Connectivity data center revenue is growing at 21, 7% year on year, thanks to increased demand.
We opened new facilities in Frankfurt and Paris in 2023.
And are receiving many inquiries.
We will continue to invest aggressively, particularly in Europe, North America and Asia.
Next is our initiatives with our partners to promote Dx left side, we established a new company next the next aware with Sadosky to promote Dx in the logistics industry.
By combining the strengths of the two companies Nick's aware aims to realize warehouse automation and data driven optimization to solve problems faced by the logistics industry right.
Right side, Japan Airlines, and <unk> Smart drone formed a capital and business alliance for the social implementation of drones.
The partnership aims for a safe and secure flight management and expansion of usage by utilizing gels Air transport business technology, NK, DDI Smart drones flight management system and communication infrastructure.
Next is finance and energy business, we aim to further expand our customer base through synergy with telecommunications.
Financial business is progressing steadily left side.
<unk> financial Holdings operating income grew strongly by 87, 7% year on year, excluding the impact of accounting treatment changes in the year ending March 2023 as shown in the middle settlement and loan transaction volume also grew strongly.
Italy by 23, 3% year on year.
Right side or financial customer base, such as credit cards and banking is also growing steadily.
Next is focused services, namely credit card and bank businesses left side.
<unk> Gold card grew strongly reaching 1.07 million members, which is up by 48, 6% year on year growth is accelerating through synergy with telecom as shown in the middle au pay card subscription rate for au money activity plan is $4 four.
Times that of other rate plans of which gold card selection rate is approximately three five times right.
Right side mortgage loan balance grew strongly to reach two six trillion yen up by 66% year on year.
Next is energy related initiatives.
In addition to expanding the number of contracts, we will promote initiatives for carbon neutrality left side au denki is working to stabilize its business by reviewing the procurement and sales method.
We aim to achieve sustainable business growth by increasing the number of contracts going forward.
<unk> side, we are promoting the use of renewable energy generation for base stations.
Upper row au.
<unk> renewable energy started operating solar power plant in December 2023, the electricity generated is supplied to <unk> base stations.
Bottom row.
We started a demonstration trial to generate electricity by wrapping bendable to rubber skite solar cell around the base stations.
Next initiatives toward further growth.
WC Mobile World Congress Barcelona is fast approaching this later this month <unk>.
<unk> will exhibit for the first time this year under the theme life transformation enhancing the power to connect.
Left side at M. W E T.
<unk> will introduce Dx and Alex initiatives for the future, including mobility space and net versus.
Right side <unk>.
<unk> is aiming for the next stage of growth.
And evolving the Lx area to realize the future society of consumption diversification mobility Society, and new technology utilization.
We will discuss these strategies in more detail in our next full year financial results briefing.
Okay.
Finally, today's summary.
Consolidated results for the first nine months show an increase in both revenue and income we will continue to aim to achieve our full year forecast steady growth in focus areas overcame the decrease in rocked and roaming revenue.
We will promote each initiative of the satellite growth strategy toward a further growth orbit in five G Communications K D. D. I will promote initiatives for sustainable <unk> revenue growth and network quality improvement in corporate business, we will promote K DDI business and accelerate customer.
<unk> Dx promotion based on our strength in telecom.
In finance and energy business, we will further expand our customer base by synergy with telecommunications and will further evolve Alex area for sustainable growth and realization of future Society. This concludes my explanation. Thank you very much for your kind attention.
Thank you for waiting we now would like to start our meeting on <unk> financial results of the third quarter for fiscal year, ending March 'twenty for questions and answer session. Thank you.
So much for joining us out of your busy schedules.
I M U M C.
Carver from IR Department.
The meeting is broadcast live on the Internet with Japanese and English simultaneous translation.
Please be advised to about to meeting will be later made available on our IR website for on demand distribution.
So let me introduce today's attendees.
Vice President executive director of personal business and global consumer business sector ammonia.
Senior managing Executive Officer, CTO Executive director technology sector Yoshimura.
Senior managing Executive Officer Executive Director solution business sector in General manager <unk> Group's strategy Division Gras Executive Officer, Deputy Executive director of personal business sector, and executive Director business Exploration Development Division Matsuda, Managing Executive Officer, CFO Executive director corporate sector signed shortly.
Executive Officer Executive Director of corporate Management Division corporate sector Arcata.
Yeah.
Today, we have uploaded three items related to business results one presentation punching detailed materials on our IR.
Website. Please read the disclaimer in each document about what is listed into material outperformance, including what will be shared during the Q&A on subscription targets.
Managing Executive Officer CFO side shows you a brief you on the summary of the business results followed by the questions and answer session.
So I showed you the floor is yours.
Thank you very much for joining us indicated DDS business results meeting after of your busy schedules.
Before entertaining your questions, let me share with you a summary of the third quarter results of the fiscal year ending in March 2024.
The cumulative results at the third quarter of the fiscal year March 2020, full recorded increasing revenues and income. The left shows operating revenues, which were four 2 billion $265 5 billion yen up two points.
Representing you on the progress ratio was 73, 5%.
Phytoncide.
Yeah on air plus 0.4% to the progress ratio versus 78, 5%.
We will continue to aim for full year forecast.
Mixed.
On factors support changing the consolidated operating income steady growth in focused areas overcame a decrease in rock and roaming revenue.
From the left to group a N V and <unk> revenue and record in roaming revenue minus 31 billion yen.
Brown to communications auto revenues were minus 70 million yen Gx was plus 11 3 billion yen for financial business. So there was a temporary accounting impacting FY 2023, which was minus <unk> eight gene point 2 billion yen. Excluding that's the result was plus 12.
2 billion yen energy business was plus 12 2 billion yen as a result operating.
Income was 847 9 billion up 3.2 billion yen year on year.
Next concerns multi brand to ARPA revenues.
The left shows that the cumulative communications off of revenues from the first through the third quarter and if our March 2020 for one year on flat higher revenues are expected in the fourth quarter.
The right shows total ARPA revenues, which are owned.
Upward trend quarterly.
Yeah.
Next is telecom business momentum.
Left side multi brand Ids performed well at 31.06 million.
The initial target of $31 million was achieved ahead of schedule.
New subscriptions are increasing especially for UQM mobile while au to Youku mobile migration has slowed.
We will continue to strengthen our initiatives to raise the attractiveness of au and improve network quality to continue to be chosen by customers.
Next is multi brand our pool.
Both communications and value added ARPA, who are maintaining an upward trend.
Left side Communications <unk> reached 3990 yen up by 30 and on a quarter on quarter basis.
<unk> and Youku mobile RPM grew thanks to increased data usage.
More than 80% of au subscribers chose unlimited usage and over 70% of Youtube mobile subscribers chose medium and large capacity plan.
Right side value added ARPA reached 1270 yen up by 20 and on a quarter on quarter basis growth was driven by an increase in product support related needs as well as growth in credit cards and mortgage loans.
Next is business segment results left side operating revenue growth was driven by next core which grew by 34% year on year.
To the right operating income was driven by growth in Iot and data centers and to increase in mobile communications revenue.
Growth was 11.4% in Q3 alone and seven 7% in Q3 year to date.
Profit growth is steadily increasing and we continue to aim for full year double digit growth.
Finally, today's summary.
The consolidated results were just explained.
We will promote each initiative of the satellite growth strategy toward a further growth orbit.
In five G communications.
<unk> will promote initiatives for a sustainable <unk> revenue growth and network quality improvement.
In corporate business, we will promote K DDI business and accelerate customers' Dx promotion based on our strength in telecom.
In finance and energy business, we will further expand our customer base by synergy with telecommunications and will further evolve Alex area for sustainable growth and realization of future Society.
This concludes my explanation.
We will now move on to the Q&A session. Thank you very much again for today.
Music social what do you think you now.
Now we would like to entertain your questions.
So as we would like to offer an opportunity to ask questions to as many of you as possible and limit your questions to two if you have two questions.
Wait for the answer to your first question and raised the second question. Please.
Algeria.
How to raise a question.
Please stop the raised Hans icon of the June when invited after the motivator announces your name and affiliation top a mute under Oscar a question, we'll accept questions until the scheduled time.
First question.
Diverse equities on those young please on mute and raise a question.
On <unk> can you hear me, yes, we can hear you.
Two questions. The first question ARPA revenues.
This time, it's almost flat.
As further interpretation outlook in the fourth quarter is likely to increase.
Share with me your interpretation I would probably look at the substance subscribers about doing okay in terms of the <unk>.
Perhaps you could have done better that's how I look at it but.
This is the breakdown what are the factors behind on going forward.
Regarding those factors towards the fourth quarter, how are they going to move what is your outlook. Please.
Thank you for your questions multi brown to upper revenues related question.
EMEA will address your question.
About Apple.
First a communications off of revenues.
They are brisk right on track.
Looking at the third quarter, if you look at the data.
Third quarter alone minus 900 million yeah, one yeah.
So this is negative figure with us just to buy us several hundred million dollars, but unfortunate, but first quarter through the third quarter.
Year on year this difference.
Drunk so in the fourth quarter is likely to be on the positive territory. So that we can have the <unk>.
Growth in the next fiscal year, we are making a vote regarding a pool.
Regarding news, where they were a bit weak as we look at the factors voice and data.
Regarding voice.
It's a bit weak.
Last year.
Turning the voice.
Partly because of the COVID-19.
The it was weak but.
And we were not really able to see that.
On the other hand, the data has been enjoying steady growth.
And we believe the data will continue to enjoy growth. So we believe that is going to move into the favorable manner, a communication software revenues.
First through the third quarter it enjoyed steady growth through regarding the fourth quarter because of the seasonal variation every year, there's a little bit going dung, but we hope that we can at least keep it flat or even do better. So please feel reassured.
Reassured.
Thank you.
Second question.
Page six.
Regarding that charge.
At the very end and.
Others, how should I interpret those others.
Pluses six point to 16.7, Billy Yeah, and I think the cumulative number but second whether that's plus $15 5 billion. So first quarter second quarter as I look at the second quarter strong growth first quarter not much so regarding that.
Others part.
To begin with.
Is it.
My interpretation should I interpret that I shouldn't expect much growth.
Sure.
Till December.
Handout sales.
They were really sold.
Overwhelmingly.
Maybe it's because of the OE first impacted by the increase in the sales that's part of the picture under.
You expected it to grow a little more but this others push on digital to grow and as of late.
Yeah.
Was the performance of flat.
How should I interpret this that's my question.
Thank you.
Thank you for your question.
Yeah.
And this material page three this is step chart on the right hand side to $16 7 billion others. You raised that question. So allow me to address your question others 16 7 billion yen what are the major factors do you guys see.
Regarding the major ones depreciation degrees.
So the $11 5 billion increase in income.
We already disclosed them by quarter depreciation degrees.
Regarding the size no major changes in the third quarter it accumulated to $11 5 billion yen.
Regarding others, how to use <unk> or support for configuration product shop, or two revenue increase deduct another positive factor regarding the numbers I Hope you will forgive me for not disclosing them on the other hand.
As you said.
Handset sales devices sales as a result of the promotion.
Sales support or commission.
They incurred in rather.
Large amounts of show product support.
Revenue increase was somewhat offset.
Especially regarding the sales promotion.
There was significant activity in the third quarter so the.
Second to the third quarter. This positive increase was not so significant did I answer your question.
Thank you.
Thank you very much.
We will take the next question. Please use the raise hand button on zoom.
Next question.
<unk> S.
F N B C Nikko Securities Mr. Kikuchi, Please on mute yourself and ask the question. This is kikuchi speaking thank you very much.
I have two questions.
First.
Is on the churn rate.
The environment of churn rate third quarter compared to Q2 and on a year on year basis.
Sub brand.
Our mix is increasing and that is a large factor I understand.
So am I right and what I want to understand is in Q4, the telecom business law was revised at the end of December.
And therefore churn rate declined and the contract cost declined and sub bread migration also slowed down this is ideal.
To see that but do you think that will happen or a.
Looking at the stores that it is unlikely.
So the churn rate and your fourth quarter outlook. Please that is my first question.
For the question.
So personal business question will be answered, especially on the competitiveness in churn rate.
Ammonia will answer the question.
Thank you for churn rate.
As you rightly mentioned.
The detail is au churn rate is improving you queue.
Is declining somewhat or the churn rate is increasing.
Yes.
But if we look further in.
The reason our churn rate is rising is because the sin alone customers is churn rate is increasing for customers with Sim only.
If our customers who buy with device the UK customers, who buy with device, we see not much change we don't see much change.
Going forward Telecom business law was revised so Sim alone will also be regulated so unlike third unfun to third quarter.
We will not we cannot use money for a much money for those who own legal for Sim.
So this part will be suppressed in the fourth quarter.
So the churn rate there will move in the positive direction.
But on the other hand with the revision of the business law.
The movement of the devices.
Up until December 2006.
There were some last minute demand and sales increased.
From the 27th.
We see a decline.
But this decline was only the first two weeks.
After that we're seeing a gradual recovery and right now.
It is pretty much flat year on year.
Yeah.
So for.
For the sales season in March we will accelerate the device sales and increase I D numbers. Thank you very much I hope this answers your question.
So telecom business law revision impact.
In your financial results and on your competitiveness what impact do you anticipate.
Thank you very much for the question so the impact of the revision of telecom business law.
Ammonia will answer the question.
So as I mentioned earlier.
Before and after December 27th there were some big impact, but we are seeing a recovery after that.
So going forward.
We will try to achieve.
The last year's level.
A seller device. So that we can achieve last years level and increase the number of Ids and the communication <unk> revenue.
We hope that we can increase our results on the cost side.
As you know the acquisition cost will incur.
But with I F R S.
They will not be much impact on the single year basis.
So we think this will be a positive.
Thank you that was the first point and second point.
At the beginning of the year you said you will see a V type recovery next year in the communications revenue.
Does it seem likely it doesn't really seem so so for next year.
To achieve your medium term plan I think you're still convinced they will achieve the plan if there are.
Measures on cost side and revenue side to achieve the medium term target.
Share them with us.
Thank you for the question.
So that question.
Is for the consolidated basis or personal segment.
Alone.
Overall these overall medium term plan target.
Thank you.
For this fiscal year.
Financial results.
From third to fourth quarter.
We talked about cost just earlier.
We need to enhance our competitiveness in the fourth quarter.
So to prepare ourselves to be more competitive we need to invest more costs.
But.
Consolidated base consolidated.
Operating income of one trillion 80 billion yen will still be pursued the target we had at the beginning of the year and next year.
I'm, sorry to say this but.
We want to share that with you along with the guidance when we announce the full year financial results, but we have been maintaining the operating income increase.
So we want to do.
Maintain the trend.
And achieve profit increase.
<unk> business or we want to to.
To turn this around and no change in our stance there. Thank you very much.
Thank you very much.
Next question please.
Right. Please stop raise Honda icon. If you have a question next question Nomura Securities Zoom Arsenal Sun. Please on mute yourself and raise a question.
There might be some overlapping regarding my question number one personal business second concerning the corporate business. So two questions.
So sorry, because they're a little follow ups in the third quarter Communications Arbor.
Year on year is smoked really on the increase.
The larger capacity data increase on to your mobile.
The relations about the mix in the fourth quarter whats going to happen.
The access charge in the fourth quarter, it's not going to go down compared with the previous year in the fourth quarter is likely to increase but am I correct.
Sales promotion as you mentioned already.
In your explanation on the handset sales there was sales promotion with some commission, but using iPhone Ifr Elias.
I don't really think cost is incurred.
It's because their installment.
And also churn rate to January under one roof.
Going back to <unk> I think you are referring to sales.
What about the churn rate is it year on year. So I'm. So sorry about the follow up questions. But these are collateral for clarification. Thank you for your questions personal auto.
John.
Sales promotion cost.
EMEA will address your question.
First about <unk>.
At the risk of repeating myself.
At the moment do we believe that it's D recovering nicely regarding a you.
Money activity plan has been doing very well.
Onto Mox plant the unlimited plan has seen a lot of increase.
Our <unk> has gone up as well as for you Q.
<unk> has been doing very well within youku and to meet capacity large capacity geochemical me and Tokotoko B the ratio of these two have gone up.
You can you are you.
Regarding bobbi Brown to abboud, they have been increasing nicely.
So.
Communications ARPA revenue are concerned going forward.
We believe this trend is likely to continue.
So please interpreting this right now about the churn.
Regarding the January data, we don't have them at our hands. So we don't really know.
But regarding January.
Because of the backlash of perhaps of the last minute sales in December child rate seems to have increased a little but I think it route.
We recover.
And acquisition cost regarding the acquisition cost as I said.
<unk> is it will be deferred so in a single year basis, I don't think there's going to be a larger impact by the in this fiscal year it.
It will be listed so that portion might increase a little I hope I answered your question.
The fourth quarter access judge will not go down so much as in the last two years so.
So in the fourth quarter ear, ONEOK up or perhaps is likely to go up on my correct on the churn rate.
Compared with January March last year.
It's about the same level.
<unk>.
Could you clarify those points please.
Sorry.
You State your question again in the fourth quarter ARPA.
In terms of data, it's expanding and access charge.
Negative portion.
Is not so much as the fourth quarter in the previous year. So they're all through in the fourth quarter E. O now it's going to go up on my correct in assuming that yes, you are correct in assuming that.
Regarding the impacts of axis strategy without start to we believe that we can recover to the positive territory insurance Abaxis Judge I think it's moving nicely.
Ill linear we believe it is going to be in the positive territory by the churn rate for Q other fourth quarter as a whole regarding that.
We don't really know the outlook were estimated to difficult for me to say probably.
Because of the revised U.
Telecom business law I don't think of the liquidity goes down the liquidity should be raised due to your own yeah, almost comparable to the last year's results D. That's where we're looking at.
Thank you next concerns of corporate business.
Third quarter fourth quarter.
Contact Center business integration, Canada data Centre acquisition.
There are Mondays integration there is an impact from those.
So going forward how the ink.
Income will be increased to it's difficult to see it on the extension of the existing business, but looking at the next fiscal year.
They may akshay can make a contribution and there might be some organic increases but in terms of operating income double digit growth is pursued organic or including all these mergers in the next fiscal year.
No changes do about goal or.
Objective on my correct in assuming that.
Could you do you revisit to that again.
Thank you for your question.
On that month cohort I will address your question.
Yeah.
Thank you.
Festival this fiscal years.
Income from the quota one first quarter to the third quarter first quarter on second quarter.
There was no impact from my Monday, So starting from the second half of the that's being added to Canada data Center and call Center I'm talking about the <unk>.
Also the higher fuel cost compared with the previous year. There was some impact in the first half but in the second half that's gone so starting from the third quarter. The income level has expanded.
This regarding this fiscal year since the beginning of the time double digit income growth is something we have been stating so towards that goal, we would like to move steadily.
As for going forward.
This data center call Center integration.
The income from them that will be felt on a full year basis in the next fiscal year.
Our next core business.
Steadily they are enjoying growth, but there are three areas onto each is enjoying growth.
So in the next fiscal year.
We believe that we can have that robust growth I hope I answered your question.
Thank you.
Thank you very much that's all from me.
Thank you very much we will take the next question.
Please use the raise hand button on zoom, if you have any questions.
Okay.
Next question.
Okay Some securities.
Mr. Okumura please.
Amir yourself.
Hello Okamoto from August on Securities.
Thank you.
I have two questions.
Overlapping questions.
One is.
The corporate and mobile or competitive landscape.
So towards the end of the year left them mobile net adds increased accelerated I saw in the release in corporate I think it's the peer.
Beer net add.
So maybe not much impact on you, but is that the correct understanding.
And January March quarter, given the situation in this quarter.
What is the business environment against peers with any changes in the competitive landscape.
Thank you for the question.
So corporate business mobile.
Situation.
Yes.
So mobile, including corporate and mobile.
Ammonia will answer that question.
So competitive landscape, especially these are erupt in.
As you rightly said.
Corporate new subscribers is increasing.
But on consumer side, and the business side corporate side, we do not see much impact.
So 6 million Mark was exceeded.
6 million connections, but vis vis a N N P. No big difference and look we look at the roaming traffic and theres not much change there either so.
No notable change.
Did I answer your question.
Thank you.
And my second question is.
On next year's view.
The operating income guidance not numbers, but I want to ask you for the image.
The reopening.
It will decline roaming revenue will decline, but our pool will revenue will increase and the focus area or will increase and cost efficiency can be can bear fruit and so we think the profit the income will jump up next year.
Or are there risks that.
That you did not anticipate or any cost increase that you anticipate just the general direction is fine. Thank you very much.
Thank you for the question.
So let me answer your question.
Right now.
We are taking various measures for next year and depending on how this builds up our starting line will be determined.
So in order to increase our income we are taking a thorough measures.
Our medium term plan target and the revenue and operating income are now being revisited.
So we will start discussing the plan for next year, and then fix it and announce it in May.
So the numbers and the breakdown will be in May I hope you could wait until may.
But our general thinking is that.
We will continue pursuing for growth.
Yeah.
So the focus areas.
Our business segment.
Energy and finance businesses.
So the increase in.
Income increased trend. This is what I would like you to take a look at going forward I am sorry for a very ballpark rough view does this answer your question. Thank you very much.
Thank you very much for answering my question.
Thank you.
Next question. Please if you have a question please top the rays hunt button on the zoom.
Yeah.
If you have a question please.
Sue.
There seems to be nowhere, who would like to raise a question with this reply to conclusion.
Meeting on the fiscal year, ending March 31, 2024, K T. G. I F Q3 financial results. Thank you so much for joining us.