Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<ul>
<li>As expected space segment revenue growth accelerated as global/mobile sales took off offsetting media revenue erosion</li>
<li>User trends in the video business remain weak although Q3 subscriber losses improved QoQ despite this being the seasonally weakest quarter</li>
<li>We are leaving our forecasts unchanged and remain at Buy</li>
</ul>


As expected space segment revenue growth accelerated as global/mobile sales took off offsetting media revenue erosion
User trends in the video business remain weak although Q3 subscriber losses improved QoQ despite this being the seasonally weakest quarter
We are leaving our forecasts unchanged and remain at Buy


Sky Perfect JSAT (Buy) - Q3 22 Results Reaction: Satellite Growth Offsets Media Weakness

<ul>
<li>We are publishing updated forecasts and commentary for Sky Perfect after meeting the company post-results </li>
<li>Media results were predictably weak but the company hopes to make up ground in H2 as it ramps up marketing spend to support sport packages that launch in Spring</li>
<li>Amazon's reveal that it has tested LEO-based satellite software highlights cloud platform interest in space ICT infrastructure like that being pursued by Sky Perfect JSAT and NTT</li>
</ul>


We are publishing updated forecasts and commentary for Sky Perfect after meeting the company post-results 
Media results were predictably weak but the company hopes to make up ground in H2 as it ramps up marketing spend to support sport packages that launch in Spring
Amazon's reveal that it has tested LEO-based satellite software highlights cloud platform interest in space ICT infrastructure like that being pursued by Sky Perfect JSAT and NTT


Sky Perfect JSAT (Buy) - Q2 Follow up Plus Amazon Proof of Concept for Space Compass

Thematic (Sector/Industry)

<ul>
<li>The Japan telecom and Internet companies in our coverage universe held ¥1,253bn in public equities as of Q2(Sep) largely built through capital alliances tied to business collaboration</li>
<li>NTT has the largest portfolio at c. ¥958bn (7% of market cap) followed by KDDI. Toyota (¥354bn) and JTower (three strategic telcos) are the largest and most widely held </li>
<li>The P&amp;L impact of valuation changes in Q2 should be muted. We have included tables for all the companies in our coverage</li>
</ul>


The Japan telecom and Internet companies in our coverage universe held ¥1,253bn in public equities as of Q2(Sep) largely built through capital alliances tied to business collaboration
NTT has the largest portfolio at c. ¥958bn (7% of market cap) followed by KDDI. Toyota (¥354bn) and JTower (three strategic telcos) are the largest and most widely held 
The P&amp;L impact of valuation changes in Q2 should be muted. We have included tables for all the companies in our coverage


Japan Telecoms/Internet - A Quick Look at Public Equity Portfolios

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sky-perfect-jsat-holdings" target="_blank" data-smartkarma-citation="entities:14097:1" rel="noopener">Sky Perfect Jsat (9412 JP)</a> posted Q4 results and guidance that are ahead of expectations for profitability</li>
<li>The company has unveiled plan to re-leverage and invest more, starting with its recently announced JV with NTT , underscoring its confidence in the potential of the space business</li>
<li>The plan also includes a c. 60% increase in shareholder returns over the next five years, likely through the flexible application of share buybacks</li>
</ul>



Sky Perfect Jsat (9412 JP) posted Q4 results and guidance that are ahead of expectations for profitability
The company has unveiled plan to re-leverage and invest more, starting with its recently announced JV with NTT , underscoring its confidence in the potential of the space business
The plan also includes a c. 60% increase in shareholder returns over the next five years, likely through the flexible application of share buybacks


Sky Perfect JSAT (Buy) - Q4 21 Results Reaction: A Huge Declaration of Confidence

<ul>
<li>Space segment revenue is growing despite Covid-19 headwinds for in-flight Wi-Fi and should continue into the next few years as new capacity is unlocked</li>
<li>Investment in the media segment is likely to step up in Q4 on prootional spending for new Japan professional baseball and the Spoox streaming service</li>
<li>The outlook is improving heading into 2022 as the company will lap accounting changes that made headline revenue look weaker. We've updated our forecasts and remain at Buy</li>
</ul>


Space segment revenue is growing despite Covid-19 headwinds for in-flight Wi-Fi and should continue into the next few years as new capacity is unlocked
Investment in the media segment is likely to step up in Q4 on prootional spending for new Japan professional baseball and the Spoox streaming service
The outlook is improving heading into 2022 as the company will lap accounting changes that made headline revenue look weaker. We've updated our forecasts and remain at Buy


Sky Perfect JSAT (Buy) - Follow up After Q3 21 Results

Japan

SKY Perfect JSAT Holdings, Inc. is a holding company, which manages financial operations for its subsidiaries. As a group, the Company provides broadcasting and data transmission services via satellites. SKY Perfect JSAT delivers digital TV programs including movies, music, sports and entertainment to its subscribers.

Sky Perfect Jsat (9412 JP)

Sky Perfect JSAT (Buy) - Q3 22 Results Reaction: Satellite Growth Offsets Media Weakness

Space segment revenue growth accelerated, providing some offset for media weakness and keeping the company on track to meet full-year guidance

Kirk Boodry

Sky Perfect JSAT (Buy) - Q2 Follow up Plus Amazon Proof of Concept for Space Compass

Media results have been predictably weak but key tailwinds for Space segment growth remain. Meanwhile, Amazon appears interested in space...

Kirk Boodry

Japan Telecoms/Internet - A Quick Look at Public Equity Portfolios

Public equity portfolios in our coverage represent 3% of total market cap, driven by capital alliances tied to business collaboration. We thought...

Kirk Boodry

Sky Perfect JSAT (Buy) - Q4 21 Results Reaction: A Huge Declaration of Confidence

This was a good report with a financial beat and an aggressive investment plan that underscores its confidence in the space segment. A JV with NTT...

Kirk Boodry

Sky Perfect JSAT (Buy) - Follow up After Q3 21 Results

We have updated our forecasts after talking with the company. In the near-term, Space segment revenue looks solid; media investment will step up...

Kirk Boodry