KDDI net income up; fails to meet expectations

23 Apr 2009

Japan’s second largest telecoms operator by subscribers KDDI Corp today reported that its net profit for the year to 31 March 2009 climbed 2.3% to JPY222.74 billion (USD2.27 billion) from JPY217.79 billion in FY2007/08, but failed to meet market expectations as revenues fell from JPY3.60 trillion to JPY3.50 trillion. Analysts had been forecasting full-year net income in the region of JPY261 billion, but in the operators’ fiscal fourth-quarter it swung into a loss of JPY31.19 billion on quarterly revenue of JPY867.81 billion (down 9.4 % y-o-y). The company said its fixed line telephony operation continued to lose customers and money, while income from its mobile division also dropped in a competitive market. In addition, one-off costs related to its telecoms networks adversely affected the group’s bottom line. KDDI is estimating net income for the current financial year will grow to JPY255 billion.

Japan, KDDI (au)