KDDI shares slip on unexpected dip in profits

19 Apr 2010

Japan’s second largest telecoms operator KDDI Corp saw its share price slip in early Tokyo trading after it published an unexpected fall in net income due to restructuring at its fixed line business. The telco’s share price fell 4.1% to JPY454,500 (USD4,934.60) on the Tokyo Stock Exchange, its lowest price since 12 November last year in the wake of the group posting a 4.6% decline in net income to JPY212.5 billion, for the full year ended 31 March 2010. Bloomberg notes that KDDI previously forecast FY2009/10 net profit of around JPY225 billion, when it published a preliminary earnings statement after markets closed on 16 April. The operator incurred a one-off charge of JPY61 billion related to moves to slim down its fixed line arm – compared with a previous estimate of a JPY55 billion charge, announced in January. KDDI said its operating profit for the period under review was JPY443.5 billion, little changed from the previous year, but below the JPY470 billion figure it forecast in January. Revenue declined 1.6% year-on-year to JPY3.44 trillion. The group will report final earnings figures on 23 April 2010.

Japan, KDDI (au)