Japan’s second largest telecoms company by subscribers and revenues, KDDI Corp, said its third-quarter operating profits for the period ended 31 December 2007 climbed 40% year-on-year on the back of a strong performance from its mobile arm, and raised its full year outlook to outperform analysts’ expectations. KDDI recorded operating profits of JPY121.4 billion (USD1.1 billion) in the three months to 31 December, up from JPY86.6 billion the previous year, on revenues of JPY689.3 billion (up 5.6%). The operator now expects to post full-year operating profit of JPY414 billion in the year to March 2008, it said. That compares with a market estimate of JPY407.6 billion by 18 analysts polled by Reuters.
The company said net subscriber growth has slowed at its mobile phone operations au and TU-KA as the country’s third largest cellco Softbank Mobile continues to sign up more new subscribers than its rivals on the back of high-profile marketing of its low tariff plans. On a more positive note, KDDI said its music downloads and other internet services have helped drive up its revenues per user – a key indicator of profitability.