Japan’s second largest telecoms group KDDI Corp has reported a 2.5% year-on-year fall in net profit for its fiscal third quarter ended 31 December 2010, undermined by higher sales and promotion costs related to an increase in sales of mobile handsets. Dow Jones Newswires said KDDI booked net income of JPY65.67 billion (USD795.7 million) in the three months under review, down from JPY67.35 billion in the same period a year earlier. Consolidated operating profit dropped by 1.3% year-on-year from JPY125.83 billion in October-December 2009 to JPY124.19 billion a year later, on revenue that dipped 1% to JPY853.42 billion from JPY862.22 billion. Mobile Average Revenue Per User (ARPU) dropped 9.0% in the three-month period to JPY4,980, adversely impacted by a 17.1% fall in voice calls volumes. However, a 2.7% increase in revenue from data communication came about as subscribers switched to smartphones that generate more data traffic.
KDDI has left unchanged its full year guidance through March, and continues to forecast a net profit of JPY240 billion, operating profit of JPY445 billion and revenue of JPY3.440 trillion.