Japan’s second largest telecoms operator by subscribers and revenue, KDDI Corp, yesterday reported that group net profit slumped 16.8% year-on-year for its fiscal first quarter ended 30 June 2010, due to rising handset costs and tough domestic competition. The telco booked net income of JPY71.92 billion (USD827 million) in the period under review, on revenue that increased 1.4% to JPY866.02 billion. Operating profit fell 8.8% year-on-year to JPY129.30 billion as competition in the local fixed and mobile market ate into its bottom line. KDDI’s fixed line telephony division continued to lose money it said, with an operating loss of JPY5.38 billion yen. Nevertheless, for the full year ended 31 March 2011 the group has retained its forecast of net profits of JPY240 billion, up 12.8% year-on-year.
Operationally, KDDI’s au Corp mobile brand had 32.091 million subscribers as at 30 June 2010, up from 31.872 million in March, while the total for fixed line subscribers stood at 6.109 million, of which 1.637 million were fibre-to-the-home (FTTH) lines. In addition, ‘cable-plus’ phone lines topped the one million mark and ADSL users stood at 982,000, it said.