IPS<4390> has been actively involved in the Filipino market from the early days of its establishment. In its main international communications business (accounting for 72.3% of the revenue for the first quarter of the fiscal year ending March 2025), it provides lines such as submarine cables laid by itself and lines procured from other companies to communication companies, cable television operators, and corporations in the Philippines. The Philippine communications industry is in an oligopoly state with two major communication companies (PLDT and Globe), and operators were only able to receive uncompetitive and very expensive line provision. In this environment, the company envisioned entry and successfully provided all necessary sections by connecting the international and domestic sections by borrowing the lines of a domestic company in the Philippines that had the licensing for communications operations and communication lines to Manila. The revenue has elements of a stock-based business that accumulates with an increase in the number of customers, and the cost is mainly depreciation costs of communication lines, resulting in a high marginal profit rate revenue structure.

In its domestic communications business (19.0%), the company has acquired the sales agency rights in Japan for the software 'AmeyoJ' for call center operations from an Indian vendor and is providing it to call centers. It also provides incoming call charge services billed per second (toll-free service) and is competitive in the call center market by offering a billing system per second, unlike rival companies that bill per minute for mobile phone calls and per 3 minutes for landline calls.

In its medical & health care business (8.6%), the company operates clinics specializing in laser vision correction (Lasik) and cosmetic dermatology. The trust of overseas customers in Japanese technology has been a driving force for growth, and in response to the increasing demand for Lasik in the Philippines, it has opened clinics specializing in Lasik, and currently operates three clinics. In the preventive medical field, it has started operating the 'Shinagawa Diagnostic & Preventive Care Center (SDPCC)' and is expanding the first specialized medical care facility in the Philippines to provide preventive medical care and advanced imaging diagnosis at appropriate prices based on Japanese standards.

The revenue for the first quarter of the fiscal year ending March 2025 was 3,657 million yen (an increase of 47.5% compared to the same period last year), and the operating profit was 760 million yen (an increase of 83.7%). The completion of the Philippine domestic submarine cable network 'PDSCN' contributed in advance to the provision of communication equipment related to PDSCN. The international communications business offset the decreased revenue from the domestic communications business and the medical & health care business. Services for call center operators, such as 'AmeyoJ' and per-second billing, have been steadily performing, but the negative factor was the inclusion of retroactive settlements for past years for inter-operator communication connection fees (260 million yen). The projected revenue for the full year is 16,500 million yen (an increase of 16.9% from the previous year), and the operating profit is expected to be 4,290 million yen (an increase of 10.2%).

The company is developing businesses in the Philippines specialized in communication infrastructure and medical-related businesses without domestic competition. The growth of the main international communications business is expected in the future. In addition to the international communication line C2C connecting the Philippines, Singapore, and Hong Kong, the completion of PDSCN in December last year has enabled the provision of services to communication operators and CATV operators in island and regional areas outside the Manila metropolitan area. This is expected to lead to the provision of C2C lines to regional areas, the provision of PDSCN itself as a network, and expansion of PDSCN-related services. The establishment and procurement of lines in the Manila metropolitan area have made it possible to provide services to large companies with many branches, so an increase in the number of customers is expected to drive the company's performance.

In the long term, they aim to realize the construction of the Asia International Submarine Cable, improve communication infrastructure in the Philippines and Japan, and contribute to the expansion of business and the economic development of both countries. They are in discussions for the joint construction of a new international submarine cable system connecting Japan-Philippines-Singapore to provide a safer communication line.

The Philippines has become a BPO hub in the world due to its official language being English, and with the arrival of the population bonus period where the ratio of working-age population is expected to further increase, further economic growth is anticipated. Among the major ASEAN countries, the Philippines is among the top in terms of the estimated GDP growth rate, and the government's economic policy in the Philippines is advancing the development of digital infrastructure as a key policy, which has led to the increasing business opportunities in the digital infrastructure sector. It seems that it is possible for 100% foreign investment in communication, railway, expressway, airport, and transportation. Conversely, the Philippines' internet speed is among the lowest in major Asian countries, and there is still room for improvement. There is a large disparity in regional internet penetration rates, and the diffusion of communication infrastructure is being promoted as a key policy of the Philippine government agency (DICT). Furthermore, against the background of geopolitical risks such as the US-China confrontation, there is increasing attention to the Philippines as a hub for international communication, as evidenced by the active investment in data centers. As the demand for digital infrastructure in the Philippines is expected to continue to increase in the future, double-digit growth in performance can be expected, and it is desirable to look forward to the company's medium- to long-term growth.