FTGroup CO.,LTD.

Business Details

This segment comprises the retail electricity service, in which the company acts as a retail electricity provider offering "F-ene Denki" and "FT Denki"; the line service, in which the company operates the fiber-optic internet service "Hikari Sokutoku" as an FVNO; and other services, which include water-saving device "JET" and similar offerings. The segment is based on a stock (recurring-revenue) business model, deriving income from monthly usage fees and fixed-rate charges from customers, with Ecotech Solution Co., Ltd. among its main affiliated companies. In FY2026 (ending March 2026), the business structure changed following the transfer of the water-saving device business via a corporate split.

Recent Overview

Sales revenue declined significantly, but segment profit rose 25.1% year on year owing to the gain on business transfer

Sales revenue for FY2026 (ending March 2026) declined significantly to ¥16,222 million (down ¥3,416 million year on year). In the retail electricity service, although electricity procurement costs remained at low levels, the downward trend in selling unit prices continued and electricity sales volume also declined. On the other hand, following the transfer of Ecotech Solution Co., Ltd.'s water-saving device "JET" business via a corporate split effective March 1, 2026, a gain on business transfer of ¥2,296 million was recognized, resulting in a substantial improvement in segment profit to ¥5,732 million (up ¥1,150 million year on year).

Key Products

Growth Drivers

• Steady accumulation of stable recurring revenue from the proprietary fiber-optic brand "Hikari Sokutoku" (which performed steadily in FY2026, ending March 2026, as well)
• Improved profit margins from reduced electricity procurement costs during periods when wholesale electricity market prices remained at low levels
• Strengthening of the recurring-revenue base through continued focus on maintaining and expanding fixed monthly-fee services
• Faster and more efficient business operations resulting from the corporate split of the water-saving business, along with recognition of the related gain on business transfer

Risks

• Risk that fluctuations in wholesale electricity market prices directly affect the retail electricity service's earnings, causing significant volatility in performance
• Declining trend in electricity usage due to customers' growing energy-saving orientation, driven by government-led energy-conservation requests and rising utility costs
• Anticipated continued decline in sales revenue due to reduced electricity sales volume resulting from the policy of restraining new customer acquisition (a further year-on-year decline is expected in FY2027, ending March 2027)
• Risk of profit pressure if the downward trend in selling unit prices continues
• Uncertainty over the outlook for wholesale electricity market prices due to factors such as the situation in the Middle East, as well as price volatility risk depending on time of day and region
• Shrinkage in sales revenue scale due to the loss of the revenue source following the transfer of the water-saving device "JET" business