IPS, Inc.

Business Details

Holds usage rights to a submarine cable (C2C Line) connecting the Philippines with Singapore and Hong Kong, and provides international telecommunications lines on a wholesale basis to CATV operators and telecommunications carriers as a carrier's carrier. Combined with the domestic backbone network centered on the Philippine Domestic Submarine Cable Network (PDSCN), completed in December 2023, the segment promotes the expansion of telecommunications lines and services across the Philippines. It also operates a corporate Internet connection service through its subsidiary InfiniVAN, Inc., and handles Network Construction Services & Telecommunications Equipment Sales. This is the core segment, accounting for approximately 76% of consolidated net sales.

Recent Overview

Achieved increased revenue and profit through the acquisition of a large-capacity C2C contract and expanded regional deployment leveraging PDSCN

In FY2026 (ending March 2026), the company newly acquired a large-capacity contract for the C2C Line, and expanded the provision of lines and services from Metro Manila to regional areas through a network combining PDSCN and the C2C Line. Network construction services for regional telecommunications carriers and the provision of small-capacity lines also performed steadily. The number of billed customers of InfiniVAN, Inc. reached 2,103 as of the end of December 2025 (an increase of 99 from the end of the previous quarter), and the business as a whole achieved increased revenue and profit, with net sales of ¥12,943 million (up 15.4% year on year) and segment profit of ¥4,901 million (up 8.9% year on year). In addition, the company is working to strengthen its international telecommunications infrastructure, including deciding to participate in the new international submarine cable "CANDLE" consortium and proceeding with the construction of a cable landing station (CLS) in the Baler area on the east coast of the Philippines.

Key Products

Growth Drivers

• Expansion of large- and small-capacity sales of the C2C Line and expansion of the customer base as a carrier's carrier
• Expansion of the telecommunications line service area into regional areas of the Philippines utilizing PDSCN
• Increase in the number of billed customers of the corporate Internet connection service by InfiniVAN, Inc. (2,103 as of the end of December 2025)
• Increased telecommunications demand in the Philippines accompanying the active investment in AI and data centers
• Acquisition of international line sales revenue from global companies and hyperscalers through participation in the new international submarine cable "CANDLE"
• Acceleration of new market entry by regional emerging telecommunications carriers and expansion of the customer base following the enactment of the Philippines' "Konektadong Pinoy Act"
• Establishment of a new revenue source through the provision of landing services after the completion of the cable landing station (CLS) in the Baler area
• Revenue diversification through the steady performance of network construction services, including telecommunications equipment sales

Risks

• Risk of new competitors entering the market due to the relaxation of foreign investment regulations in the Philippines
• Foreign exchange risk related to fluctuations between the Philippine peso and the yen (valuation gains/losses on foreign-currency-denominated receivables and payables affect business performance)
• Ongoing capital expenditure burden for strengthening the domestic backbone network and constructing cable landing stations in the Philippines (construction in progress of ¥11,067 million)
• Risk of a slowdown in the growth of the Philippine economy (real GDP growth rate of 4.4% in 2025, down from 5.7% in 2024)
• Impact on the global economy from geopolitical risks (such as the situation in the Middle East) and uncertainty over U.S. tariff policy
• Risk of delays in the construction of the CANDLE cable and risk of difficult negotiations with international submarine cable operators