To our Shareholders and Investors
To all of our shareholders and other investors, I extend my warmest greetings and gratitude for your support of Okinawa Cellular Telephone Company.
Allow me to offer my greetings and report on our business results for the fiscal year ending March 2017 (April 1, 2016-March 31, 2017).
In this fiscal year, our revenues and income have once again increased over the previous year, with operating revenues of 63,017 million yen (0.6% year-on-year increase), operating income of 11,703 million yen (4.4% year-on-year increase), and net income for the current term of 7,999 million yen (6.6% year-on-year increase). This marks five consecutive terms of revenue and income growth, and sets a new record for income.
In our mobile telecommunications business under the "au" and "UQ" brands, robust support from our customers has enabled us to reach 656,200 total subscriptions by the end of March (up 2.1% year-on-year).
In our fixed-line telecommunications business, which is focused on "au HIKARI Chura," continued strength in new customer growth has pushed au HIKARI Chura subscriptions past the 70,000 mark, totaling 76,700 subscriptions (up 15.9% year-on-year) at the end of the fiscal year.
In terms of new projects, in March 2017 we launched sales of Yasai Monogatari home hydroponic gardening kits that use IoT.
For the fiscal year ending March 2018 (April 1, 2017-March 31, 2018), we are projecting further increases in revenues and income, with operating revenues of 63,100 million yen (0.1% year-on-year increase), operating income of 12,000 million yen (2.5% year-on-year increase), and net income for the term of 8,200 million yen (2.5% year-on-year increase.)
So that we can provide a more stress-free communications environment to our customers, each and every one of our employees will keep an awareness of our motto "All for the Hometown" along with a sense of speed in carrying out our business efforts.
We will continue to sustain a robust financial base, and strive to be an attractive company for all shareholders and investors. I hope very much for your continued support and encouragement.
1. Basic Management Policy
To quickly and flexibly respond to customers' needs in this constantly changing business environment, with its increasing speed and diversification, Okinawa Cellular Telephone Company works to improve the added value of its mobile telecommunications, contributing to the development of society by providing high-quality services at low cost and working to become a company that satisfies customers and deserves their trust and respect.
In addition, by building a high-revenue corporate structure that emphasizes cash flow, we make our basic company management policy one of working hard to become a company that is attractive to our shareholders and investors.
2. Basic Policy on Distribution of Profits
Okinawa Cellular Telephone Company acknowledges that return of its profits to its shareholders is a vital component of its operations, and makes a basic policy of continuously paying stable dividends as it takes into account the strengthening of its financial structure and internal oversight to ensure its future business development.
3. Mid- to Long-Term Company Operations Strategy
Okinawa Cellular Telephone Company, as both a member of the KDDI Group and a telecommunications company that provides cellular phone services in the Okinawa Prefecture region, works to provide new value with its foundation of a high-quality, stable telecommunications network and its business operations from the perspective of its customers in the region. In addition, we proactively contribute to the development of society through environmental protection programs and programs aiming to solve social issues related to cellular phone services. These are some of the ways we are working to further our TCS (Total Customer Satisfaction) activities and continuously improve our corporate quality to earn the satisfaction of all of our stakeholders.
And focusing on spectrum management and the introduction of new communications systems, we will take a thorough approach to effective capital investment and cost reduction, and will make efforts toward further strengthening of our financial structure and toward building a high-revenue business structure.
4. Challenges to Address
Okinawa Cellular's mobile phone business has arrived at an even more challenging revenue environment, due to factors such as the maturity of the mobile phone market and falling ARPU resulting from our expansion of discount services. However, by providing high added-value services to our subscribers at low prices, we will work to strengthen the power of our brand and to reduce churn rates. Furthermore, backed by our strong affiliation with the KDDI group, we will actively pursue the integration of communications services beyond the framework of cellular phones, such as fixed-line and broadcasting services, and the introduction of appealing new services.