Segment Highlights

Regarding the LP gas business, in addition to the increase in consolidated subsidiaries, the promotion of new customer acquisition resulted in an increase of 2 8 thousand customers from the end of the previous consolidated fiscal year, bringing the total to 8 07 thousand. Due to this increase in the number of customers and the rise in sales prices linked to procurement costs, sales amounted to 88,776 million yen (an increase of 6.1 % compared to the previous consolidated fiscal.
Regarding the city gas business, the number of customers remained at approximately 74 thousand, like the end of the previous consolidated fiscal year. Additionally, due to the impact of the raw material cost adjustment system, sales amounted to 17,094 million yen (a decrease of 1.1 % YoY).
As a result, the sales in this segment amounted to 105,871 million yen (an increase of 4.8 % YoY ), and in addition to the increase in sales, we implemented cost reductions, including customer acquisition costs, resulting in an operating profit of 6,652 million yen (an increase of 30.8 % YoY.

Regarding the consumer-oriented business, we promoted customer acquisition by collaborating with major mobile carriers in the ISP and mobile businesses. As a result of these initiatives, the number of broadband customers increased by 6 thousand from the end of the previous consolidated fiscal year, reaching 674 thousand. However, the number of LIBMO decreased by 1 thousand from the end of the previous consolidated fiscal year, totaling 79 thousand, and sales amounted to 23,425 m illion yen (a decrease of 3.3 % YoY ) due to a decline in ARPU.
In the corporate oriented business, sales amounted to 35,623 m illion yen (an increase of 9.8 % YoY ) due to the smooth progress of carrier services and cloud services.
As a result, the sales in this segment amounted to 59,049 million yen (an increase of 4.2 % compared to the same period), but operating profit decreased to 3,555 million yen (a decrease of 15.8 % compared to the same period) due to the strengthening of the organizational structure and increased network equipment costs.

Regarding the CATV business, we have focused on local information dissemination and program production as a community oriented operator, while also striving to enhance our content by partnering with major video distribution companies. Additionally, by acti vely conducting sales activities in new areas, the number of customers for broadcasting services increased by 3 thousand from the end of the previous consolidated fiscal year, reaching 922 thousand, and the number of customers for communication services in creased by 19 thousand from the end of the previous consolidated fiscal year, totaling 4 13 thousand.
As a result, the sales in this segment amounted to 36,488 million yen (an increase of 2.0 % YoY ), and operating profit was 5,567 million yen (an increase of 1.1 % YoY).

Regarding the Construction, Equipment, and Real Estate business, due to the smooth progress of orders for construction work, the sales in this segment amounted to 26,863 million yen (an increase of 7.3 % YoY ), and operating profit was 1,377 million yen (an increase of 17.6 % YoY).

large commercial facilities, web acquisition, telemarketing, and other initiatives, the number of customers increased by 24 thousand from the end of the previous consolidated fiscal year, reaching 191 thousand. As a result, the sales in this segment amounted to 9,764 million yen (an increase of 26.1 % YoY ), and operating profit was 450 m illion yen (an increase of 27.9 % YoY).

Among other businesses, in the nursing care business, the number of users slightly decreased, resulting in sales of 1,398 million yen (a decrease of 0.9 % YoY ). In the ship repair business, sales amounted to 1,688 million yen (a decrease of 6.2 % YoY ) due to a reduction in the number of repairs. In the wedding event business, sales increased to 1,321 million yen (an increase of 3.7 % YoY ) due to a rise in general banquets centered around corporations and various organizations.
As a result, the sales in this segment amounted to 5,444 million yen (an increase of 2.2 % YoY ), but due to increased operating expenses associated with new businesses, the operating loss was 72 million yen (compared to an operating profit of 34 million yen in the previous consolidated fiscal year).