KDDI 2Q net income up 24% on lower phone subsidies

22 Oct 2008

Japan’s second largest mobile network operator by subscribers KDDI Corp has posted a 24% rise in net profits in its fiscal second quarter ended 30 September, mainly the result of lower handset subsidies. The operator said net income climbed to JPY78.7 billion (USD790 million) in the period under review, from JPY63.3 billion in the three months to 30 September 2007, although revenues dipped 1.5% to JPY876.8 billion. Bloomberg notes that the instalment-payment plan the company introduced in June this year helped reduce costs for phone subsidies and also enabled it to contend with lower income after it cut its tariff plans to entice subscribers away from rivals NTT DoCoMo and Softbank Mobile. KDDI reiterated its forecasts from April for profit and sales revenue to rise this fiscal year. Its second-quarter operating profit climbed 27% y-o-y to JPY138.5 billion.

Japan, KDDI (au)