KDDI, Japan’s second largest full-service telco in terms of subscribers, has published its financial results for the three months ended 30 June 2014 (Q1 FY2015), reporting revenues of JPY1.021 trillion (USD9.98 billion), an 1.8% increase year-on-year on the JPY1.002 trillion reported in the corresponding period of 2013. KDDI attributed the positive development to higher data communications revenues, as a result of an increase in the number of customers using the ‘au Smart Value’ tariff and a rise in smartphone penetration rate, partly offset by decline in revenues from terminal sales. Net profit surged to JPY113.5 billion in the period under review, up 66.5 % from JPY68.2 billion at end-June 2013, while KDDI’s earnings before tax, amortisation and depreciation (EBITDA) reached JPY326.4 billion, a 7.0% improvement on the JPY305.0 billion reported in 1Q14.
In operational terms, the company reported 7.5% growth in its consolidated customer base, which reached 41.016 million subscribers at end-June 2014, up from the 38.378 million reported one year earlier; fibre-to-the-home (FTTH) broadband subscribers increased by 598,000 net additions in the period under review to reach a total of 3.638 million. Further, the company revealed that it became the first operator in the country to commercially introduce Carrier Aggregation (CA) on a Long Term Evolution-Advanced (LTE-A) network in the quarter; at launch, KDDI said that approximately 2,500 base transceiver stations (BTS) were capable of delivering maximum downlink speeds of 150Mbps. Going forward, KDDI it expects to boost the total number of compatible BTS to 20,000 by end-March 2015.