Internet Initiative Japan posts strong first half, revenue and profit surge

IIJ reported total revenues of JPY161.91 bn for the first half of FY2025, a 10.1% year-over-year increase, driven by strong growth in systems integration and network services. Operating profit surged by 30.6% to JPY15.39 bn, with net profit attributable to owners of the parent rising 34.2% to JPY10.03 bn. The company attributed this performance to increased SI/NW service revenue, a JPY1.17 bn reversal from retirement provisions, and a rebound from VMware-related impacts.

Looking ahead, IIJ reaffirmed its full-year FY2025 financial targets, anticipating JPY340.0 bn in total revenues and JPY36.5 bn in operating profit, with basic earnings per share projected at JPY130.00. The company plans an annual dividend of JPY39.00 per share. Key initiatives include ongoing large-scale service integration projects, expanding monthly recurring revenues, and strategic investments in data centers, including the Shiroi DC's third site construction.

The strong first-half results indicate that IIJ is on track to achieve its mid-to-long term vision of reaching JPY500.0 bn in total revenue with an operating margin of 12-15%. The company continues to leverage its network engineering capabilities, focusing on innovative service development and expanding its customer base.