Japan’s KDDI Corp yesterday reported its full year financial results for the twelve months to 31 March 2011, showing net income rose 19.9% year-on-year to JPY255.12 billion (USD3.11 billion) on the back of lower operating costs and reduced tax payments. The telco, owner of the ‘au’ cellular brand, booked a one-off special loss of JPY17.6 billion related to base station and cable damage following the earthquake and tsunami of 11 March. It also reported an impairment charge of JPY85.5 billion for its 800MHz spectrum and fixed line legacy service facilities.
KDDI said operating profit climbed 6.3% year-on-year to JPY471.91 billion, although operating revenues dipped 0.2% to JPY3.43 trillion as a consequence of a drop in mobile voice call charges. The mobile arm reported turnover of JPY2.59 billion, down 2.2% y-o-y, and operating profit of JPY483.7 billion (down 9.3%). However, group profits were aided by an upturn at its fixed line business where annual operating profits reached JPY24 billion, reversing a loss of JPY44 billion in FY2009/10, on revenues which rose 6.9% to JPY897 billion. For the fiscal year to 31 March 2012, KDDI is forecasting a 0.7% increase in revenues and operating profit to JPY3.46 trillion and JPY475 billion respectively, while net profit is expected to fall slightly to JPY250 billion.