Reuters reports that Japanese utility Tokyo Electric Power Co (TEPCO) is reportedly looking to offload its roughly 8% stake in the country’s second largest telecoms group, KDDI Corp, for as much as JPY186 billion (USD2.4 billion). The move forms part of the power firm’s restructuring plan to raise funds to pay for compensation claims relating to the Fukushima nuclear disaster. TEPCO is expecting to incur a loss on the stock sale of around JPY35 billion, local sources say.
TeleGeography’s GlobalComms Database writes that KDDI Corp reported a 4.8% rise in net profit for the three months to 30 September 2011, compared to the same period in the previous fiscal year, aided by cost-cutting measures and rising sales of mobile handsets. The group booked net profit for the period under review of JPY68.19 billion, up from JPY65.05 billion a year ago. KDDI reports success from the launch of the Apple iPhone 4S earlier that month, making it the second Japanese carrier (after Softbank Mobile) to offer the smartphone. The recent strong sales prompted KDDI to revise upwards its targeted sales of smartphones to over five million units from four million for the fiscal year ending 31 March 2012. Despite the bullish attitude though, the telco remains cautious about its earnings prospects. For the current fiscal year, KDDI maintained a forecast for a 2% decline in net profit to JPY250 billion and a 0.7% rise in revenue to JPY3.46 trillion.