KDDI reports 17% fall in third-quarter profits

27 Jan 2012

Japan’s second largest telecoms group KDDI Corp has reported a 17% year-on-year fall in net profit to JPY54.2 billion (USD698 million) from JPY65.7 billion for its fiscal third quarter ended 31 December 2011, but raised its revenue outlook for the full year on the strength of iPhone 4S sales. The group booked operating profit of JPY117 billion in the period under review, down 5.4% from JPY124 billion a year earlier, although third-quarter revenue rose 5.7% to JPY902 billion fuelled by a rise in data traffic as more users buy its smartphones. KDDI began selling the iPhone 4S in October last year – making it the second carrier behind Softbank Mobile to carry the popular device in Japan. Indeed, the popularity of the Apple device has prompted KDDI to up its full-year revenue target for 2011/12 by 3.4% to JPY3.55 trillion, although it has trimmed its forecast for net profit to JPY235 billion, from JPY250 billion previously. The decision to reduce the target for net income is related to a corporate tax rate cut, which prompted it to reduce deferred tax assets, it said.

Japan, KDDI (au)