Japan’s second largest telecoms operator KDDI Corp has reported a 10% year-on-year rise in net income for the fiscal second quarter ended 30 September 2010, buoyed by a return to profitability at its fixed line operation. The group posted net profit of JPY65 billion (USD802 million) for the three month period, up from JPY58.9 billion in the corresponding year-ago quarter. The Tokyo-based company left its full-year profit outlook unchanged, saying that while it forecasts a dip in profit from its mobile business, a recovery in fixed line services is helping it to reach its full-year profit goals. KDDI has invested USD3.9 billion in local cable TV and broadband provider Jupiter Telecom to gain access to more fixed line customers. As a result, it is confident it will make money from the business during the current fiscal year. In addition, KDDI says it now plans to buy back up to 5.16% of its outstanding shares for as much as JPY100 billion, according to a statement to the local stock exchange.
KDDI said second-quarter operating profit rose 8.6% y-o-y to JPY118.6 billion, exceeding the JPY117.6 billion average of three analyst estimates compiled by Bloomberg. However, revenue slipped 1.9% to 852.4 billion, and fell below analyst estimates of JPY859.6 billion.