• Strong progress towards full-year forecast – FY3/26 Q1-3 sales rose +3.1% YoY to ¥64.36bn and OP increased +4.5% YoY to ¥14.35bn, as the company’s focus on improving mobile customer LTV (Lifetime Value) started showing results, with churn declining YoY for the first time in 9 quarters. Additionally, the impact from service price revisions and inter-brand migration improvement led to total mobile revenue rising +6.1% YoY. Handset sales were strong as its UQ Mobile strategy focused on devices paid off, as did its strategy to offer device bundles when customers migrated from UQ to au. Furthermore, its entry into the electricity retail market is improving au Denki’s cost structure. We think the company has enough momentum to produce full-year results ahead of its guidance.
