December 2025
New International Submarine Cable “Candle” and Baler Cable Landing Station Project Underway; Domestic Service Preparations Advance and Medical Checkup and Health Screening Center Achieves Monthly Profitability
The IPS Group is committed to expanding communications infrastructure that supports the growth of society and businesses, with a focus on our international telecommunications business.
In the first half of the fiscal year ending March 2026, our international telecommunications business achieved significant growth in network development services in the Philippines. These services combine telecommunications equipment sales with connectivity provision, primarily for regional ISPs. Our core network, which combines the Philippine Domestic Submarine Cable Network (PDSCN), completed in 2023, with the international submarine cable C2C, has expanded nationwide. As the enactment of the Konektadong Pinoy Act is expected to encourage new market entrants, our customer base continues to grow.
We have also decided to jointly construct, through a consortium, the new international submarine cable system “Candle,” linking Japan, the Philippines, and Singapore, and are preparing for the start of commercial operations in 2028. This new core infrastructure will address the rapid increase in data communications demand driven by the spread of generative AI and cloud services. It is an important investment that will further strengthen the IPS Group’s business foundation in international telecommunications.
Furthermore, in Baler on the east coast of Luzon, we are developing a cable landing station capable of connecting up to four international submarine cable systems, including Candle. With its geographical advantage in securing an eastern route and its open-access model, the station is expected to become a strategic hub that significantly enhances our competitiveness in the international telecommunications business.
In our domestic telecommunications business, despite a decline in network usage fees associated with interconnection, solutions for call center operators performed steadily, enabling the business as a whole to maintain stable earnings. In addition to expanding operator support services using AI agents and Voice AI, we are preparing to launch our own 0120 toll-free number service in 2026.
Meanwhile, we identified an incident in which numbers provided by the Company were used for purposes beyond those anticipated by us, resulting in the spoofed display of calling numbers due to deficiencies in our settings. Upon identifying the incident, we promptly took corrective action and are thoroughly investigating the cause and implementing measures to prevent recurrence.
In our Medical & Healthcare business, LASIK services remained resilient amid a challenging competitive environment, supported by marketing initiatives and tie-ups with financial institutions. Our Japanese-quality comprehensive medical checkup and health screening services steadily captured demand from corporate and individual customers in the Philippines, achieving profitability on a monthly basis. We will continue to promote preventive healthcare and enhance service quality.
As a company operating businesses that support social infrastructure in telecommunications and medical and healthcare services, the IPS Group recognizes anew the importance of our responsibilities. Guided by our corporate philosophy, “OPEN DOOR,” we will place the highest priority on ensuring safety and reliability and further strengthen our business foundation to help build a better society.
We sincerely ask for the continued support of our shareholders.
Koji Miyashita
Founder and CEO
IPS, Inc.