Japan’s second biggest telecoms group by subscribers, KDDI Corp, posted net income of JPY86.42 billion (USD923.5 million) for its fiscal first-quarter ended 30 June 2009, up 19% from a year earlier, as efforts to reduce operating costs offset stagnating revenue growth. Quarterly revenue of JPY853.73 billion however, was down 1.9% from JPY870.52 billion in April-June 2008 as customers switched to lower-priced mobile plans. The operator said mobile average revenue per user (ARPU) fell from JPY5,900 per month in 1Q08 to JPY5,600 in the period under review, although this was countered by a reduction in operating costs for the group’s au brand mobile service – partly by spending less on handset sales promotions. For the full year to 31 March 2010 KDDI is sticking with its forecast of net profit of JPY255 billion on revenue of JPY3.48 trillion. Mobile operating revenues declined 2.4% y-o-y, although operating income increased 9.6%, KDDI said. At the end of June, the operator reported 31 million au subscribers with a cumulative share at 28.6%. In the fixed line business, KDDI said its revenues were on par with the previous year, while operating losses improved by JPY4.2 billion to JPY10.7 billion. As at 30 June 2009 the total number of fixed access lines was 5.59 million, including 1.18 million ADSL lines, 1.21 million FTTH connections, 3.06 million ‘Metal-plus’ brand telephony lines, 697,000 cable-plus phone lines and 822,000 CATV subscribers.