Internet Initiative Japan Stock Dips On Weak FY18 Profit; Sees Growth In FY19

(RTTNews) - Shares of Internet Initiative Japan Inc. (IIJIY) were trading around 6 percent lower in Japan after the Internet related network services provider reported Tuesday sharply lower net profit in its fiscal 2018, despite higher sales. Looking ahead for fiscal 2019, the company projects higher operating income and sales.

For the year, net income attributable to the company fell 47 percent to 2.72 billion Japanese yen from last year's 5.11 billion yen.

Adjusted net income attributable was 3.5 billion yen, down 17.1 percent from last year.

Operating income declined 8.2 percent year-over-year to 6.21 billion yen.

The drop in results reflected a large margin decrease impact in network services due to the smaller than expected NTT Docomo's unit price revision for mobile data communication with regards to mobile services offering costs.

This was despite stronger than expected enterprise recurring revenue as well as improvement in system integration margin.

Total revenues increased 9.2 percent to 192.33 billion yen from 176.05 billion yen a year ago.

Looking ahead for fiscal 2019, the company projects revenues of 204.0 billion yen, up 6.1 percent year-over-year, and operating income of 7.0 billion yen, up 12.8 percent from the previous year.

Annual Cash Dividend would be 27 per share.

In Japan, Internet Initiative shares were trading at 2,086 yen, down 6.08 percent.