eAccess boss says mobile arm to enter the black in H2

2 Jul 2009

eMobile, the mobile division of Japanese telecoms operator eAccess, will most likely turn its first profit in the second half of its current financial year on the back of strong demand for its notebook-based wireless broadband data services. In an interview with Reuters, eAccess CEO Sachio Semmoto said that in terms of earnings before interest, taxes, depreciation and amortisation (EBITDA), the unit is already in the black on a monthly basis. ‘There is a high possibility that we will manage to bring eMobile to a net profit,’ he is quoted as saying. ‘The pace of growth is a little faster than we expected,’ he added. The chief executive went on to say that once eMobile turns profitable the group would consider its options ‘for

maximising returns to our investors,’ although he stopped short of saying whether or not this would mean listing the venture, in which Goldman Sachs holds a 35.7% equity stake.

eAccess plans to launch high speed packet access (HSPA) services in early August and following its merger with ACCA Networks, hopes to realise cost cuts and other benefits in its ADSL business earlier than planned, Semmoto said. The group expected the tie-up will yield JPY7 billion (USD72.4 million) in profits over five years.