IPS, Inc.
4390・Prime Market・Information & Communication
Business
IPS Co., Ltd. is a telecommunications infrastructure company that upholds "Open Door" as its corporate philosophy, primarily providing international and domestic telecommunications lines centered on the Philippines. As the third international telecommunications carrier in the Philippines, it holds usage rights to the International Telecommunications Line (C2C Line) and has established a position as a carrier's carrier. The company continues to expand its telecommunications infrastructure base through the Corporate Internet Connection Service (InfiniVAN) offered via its subsidiary InfiniVAN, Inc., utilization of the Philippine Domestic Telecommunications Line (PDSCN) submarine cable network, and participation in the new international submarine cable "Candle." Domestically, IPS Pro Co., Ltd. provides call center solutions, while in the Philippines, the company is also nurturing a LASIK and preventive medicine business. The group is a diversified organization consisting of 8 consolidated subsidiaries.
Business Model
In the International Telecommunications Business, the company acquires usage rights (IRU) for the International Telecommunications Line (C2C Line) and other lines under long-term contracts, earning revenue through two segments: a wholesale division that sells (carrier's carrier) capacity to Philippine CATV operators and telecommunications carriers, and an enterprise division in which InfiniVAN, Inc. provides Corporate Internet Connection Service (InfiniVAN) on a monthly billing basis. The Domestic Telecommunications Business primarily offers solutions combining license sales of the "AmeyoJ" call center system with per-second billing services. The Medical & Healthcare Business is based on a medical revenue model derived from LASIK surgery and the operation of health checkup centers.
Company Strengths
In 2020, the company acquired usage rights to the C2C Line, becoming the third international telecommunications carrier in the Philippines, following the two major companies that hold submarine cable rights. The Philippines is an oligopolistic market where new entry is difficult due to foreign investment restrictions and other regulations, and existing licenses and usage rights function as entry barriers that competitors cannot easily replicate in a short period.
The Philippine Domestic Telecommunications Line (PDSCN), completed in December 2023, established a domestic backbone network connecting Luzon, the Visayas, and Mindanao. Combined with the C2C Line, this enables the provision of communication services across the entire Philippines, significantly expanding the sales area for regional telecommunications operators and CATV operators.
The number of billed customers for InfiniVAN, Inc.'s Corporate Internet Connection Service (InfiniVAN) reached 2,103 as of the end of December 2025 (an increase of 510 from the same period the previous year). As a monthly billing-based recurring revenue model, the accumulation of customers forms a stable revenue base.
ENVALITH's Perspective
Performance Trend
Revenue increased 58.5% over five fiscal years, from ¥10,728 million in FY2022 (ending March 2022) to ¥16,999 million in FY2026 (ending March 2026). Operating income more than doubled over the same period, from ¥2,456 million to ¥5,370 million, with the operating margin improving from 22.9% to 31.6%. In FY2026 (ending March 2026), revenue growth was driven by the acquisition of large-scale contracts in the International Telecommunications Business and expansion into regional areas through utilization of the Philippine Domestic Telecommunications Line (PDSCN). As an external factor, the recognition of a foreign exchange gain of ¥516 million due to yen depreciation boosted ordinary income and net income (compared with a foreign exchange loss of ¥276 million in the previous fiscal year). The factors behind the temporary decline in net income in FY2025 (ending March 2025), such as foreign exchange losses and subsidiary relocation expenses, have since been resolved. For FY2027 (ending March 2027), the company forecasts revenue of ¥20,080 million (up 18.1% year on year) and operating income of ¥6,100 million (up 13.6% year on year).
Growth Strategy
Diversifying international line revenue through expansion of Philippine telecommunications infrastructure and participation in CANDLE, while stabilizing profitability in the medical business
Continuing to expand the provision of lines and services from Metro Manila into provincial areas. The enactment of the Philippines' "Konektadong Pinoy Act" is expected to accelerate new entry by emerging regional telecommunications operators, and further expansion of the customer base is anticipated. The number of billable customers for the Corporate Internet Connection Service (InfiniVAN) reached 2,103 as of the end of December 2025.
Construction of an international submarine cable landing station is underway in Baler, on the east coast of Luzon Island, Philippines. Upon completion, the company aims to generate international line sales revenue through capacity sales and full-period (FP) sales to global companies and hyperscalers. Construction in progress has expanded to ¥11,067 million, indicating that investment is now in full swing.
The company aims to improve profitability by launching its own in-house version of receiving-party billing services such as "0120", while also working to expand sales in new areas such as the "AI Agent Service" utilizing Voice AI technology developed by an Indian startup. Due to increased investment costs related to new services, FY2027 (ending March 2027) is planned to see higher revenue but lower profit.
SDPCC achieved monthly profitability in the second half of 2025, recording segment profit of ¥80 million for the full year of FY2026 (ending March 2026). The number of corporate and individual patient visits has been steadily increasing, and FY2027 (ending March 2027) is planned to achieve higher revenue and profit. Although the competitive environment for LASIK remains challenging, the company will continue to improve profitability through marketing reviews and greater operational efficiency.
Last updated: July 19, 2026