Japan’s second largest telecoms operator by revenues KDDI Corp said net profit for its fiscal second quarter ended 30 September 2009 fell 25% year-on-year on higher sales costs and weak demand for its services. The group posted consolidated net income of JPY58.87 billion (USD641.8 million), down from JPY78.66 billion in the same period of 2008, with its mobile brand ‘au’ booking turnover of JPY869.36 billion (down 0.9%) on the back of the introduction of discount packages designed to attract new subscribers in a competitive market. Although this resulted in a net gain of 102,300 new mobile users in September – lifting its overall base to 31.23 million – the sales promotion led to a 21% fall in operating profit to JPY109.2 billion, it said. Moreover, KDDI’s new discount packages resulted in a 5.7% year-on-year decline in average revenue per user (ARPU) in the latest financial quarter to JPY5,600. For its full year ended 31 March 2010, the company left unchanged its forecast, expecting a net profit of JPY255 billion on revenue of JPY3.480 trillion.