KDDI reports 15.6% rise in Q1 operating profits, maintains outlook

23 Jul 2007

Japan’s second largest telecoms company by subscribers, KDDI Corp, has reported a 15.6% gain in quarterly operating profit for its first quarter to 30 June, driven by sustained growth at its mobile unit and the positive impact of its cost-cutting measures. Following the announcement KDDI confirmed its full-year outlook and said it was ready to embark on a mobile price war in September, when it will halve some of its basic mobile service monthly fees to match offers from rivals Softbank Corp and NTT DoCoMo. KDDI, which led the pack in net subscriber gains in 2006, is witnessing strong competition this year, particularly from Softbank Mobile which has cut prices dramatically and launched an aggressive marketing campaign.

KDDI posted operating profits of JPY140.90 billion (USD1.2 billion) in the three months ended 30 June, up from JPY121.93 billion a year ago.

Japan, KDDI (au)