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.