KDDI reports 30% rise in 9M net profit

2 Feb 2015

KDDI Corp, the Japanese telecommunications operator formed in October 2000 through the merger of DDI Corp, KDD Corp, and IDO Corp, has reported strong gains in both revenues and profits for the first nine months of its fiscal year ending 31 March 2015, fuelled by a near-doubling in 4G mobile subscribers. The carrier booked consolidated operating revenues of JPY3.352 trillion (USD28.54 billion) for 9M FY2015, up 5.4% year-on-year from JPY3.180 trillion previously, as operating income climbed 9.7% to JPY585 billion, EBITDA rose 7.4% to JPY985.9 billion and net income surged 30.6% to JPY351 billion. KDDI attributed the strong set of results to the contribution of a steady rise in mobile communications revenues and the saving of sales commissions in the Personal Services segment. Consolidated operating profit margin rose 0.7 points, to 17.5%, with the operator noting it has achieved 80.1% of its consolidated operating income target for the full fiscal year, putting it firmly on course to report its second consecutive year of double-digit growth. CAPEX rose 24% y-o-y to JPY463 billion in the nine-month period, with wireless investment expanding 42% from the same period a year ago to JPY323.6 billion.

KDDI, the country’s second largest operator with a 28.2% market share at 30 September 2014, reportedly added a net 7.1 million 4G connections last year, for a total of 16.2 million. Additionally, the number of people signed up to the WiMAX network of its subsidiary UQ Communications increased 72% to 7.15 million and fibre-to-the-home users rose 8% to 3.41 million.

Japan, KDDI (au), UQ Communications