P.69 Communication Services Group
69 03. Performance & Data
Communication Services Group
Creating new value and helping realize a sustainable society by combining cutting-edge technologies with our core strengths in the media, telecommunications, and broader communications services sectors.
Main relevant material issues Shinichi Kato Group CEO, Communication Services Group
▍Quantitative information
| (FY) | 2024 | 2025 | 2026 Forecast |
|---|---|---|---|
| Invested capital (Billions of yen) | 600.0 | 570.0 | 570.0 |
| ROIC (%) | 5% | 3% | 3% |
| Profit for the year: | ¥25.8 billion | ¥16.0 billion | ¥15.0 billion |
| Underlying profit: | ¥8.0 billion | ¥15.0 billion | ¥15.0 billion |
- 800 600 400 200 0
- 15 10 5 0
FY2025 Investment｜Approx. ¥27.0 billion
Main investment areas
- Mobile device business
Major asset replacement
- Sale of T-Gaia
▍External Environment: Business Environment
Opportunities
- Growing global demand for Japanese content, such as anime
- Limitations of maintenance and inspection operations that rely on manual visual inspections, driven by aging public infrastructure and worsening labor shortages
Risks
- Emergence of country risks, especially in developing nations, due to changes in policies and regulations
▍Internal Environment: Key Strengths
- Domestic network directly connected to consumers (Cable television household subscriptions in Japan:
No. 1)
- Expertise in building overseas telecommunications infrastructure
▍Business Strategy
- Strengthen the information/telecommunications infrastructure business and expand/upgrade value-added services
- Expand/upgrade the domestic 5G-sharing infrastructure and solutions
- Leverage the cable platform to expand/upgrade new services
- Transform and evolve entertainment shopping by integrating TV, digital, and in-person channels
- Roll out anime IP–related merchandising and video production businesses overseas
- Maximize the performance of global CVC and PE
▍Medium-Term Management Plan 2026
Initiatives in final year of medium-term management plan
- Leverage communications and AI technologies to expand public infrastructure solutions businesses for railway and airport operators
- Roll out merchandising and video production businesses overseas to maximize revenue from anime IP
Initiatives for next medium-term management plan
- Promote asset replacement to deliver value
- Promote digital and AI strategies to cut costs at major subsidiaries and thus achieve profit growth
- Establish a new, substantial earnings pillar
▍Business Development
- Smart Communication Platform SBU
- Next-Generation Telecommunication SBU
- Media SBU
- Innovation & Investment SBU 5G-sharing infrastructure (Japan)
Telecommunications business (Ethiopia) Media businesses in cable television (Japan) TV shopping (Japan) Mobile device installment sales (Kenya) Global CVC (Start-up investment) in 5 bases
▍Key Market Trends
We aim to expand our business in overseas markets for Japanese anime, which is earmarked for significant growth
Japanese anime market trend (Trillions of yen)
- Overseas
- Japan
12 10 8 6 4 2 0 2024 result 2030 forecast 2035 forecast (Year)
Source: Anime Industry Report (2030 and 2035 forecasts are based on the report)