KDDI reports strong revenue and profit growth in fiscal Q1

3 Aug 2016

Japan’s KDDI Corp (au), whose main shareholders include Kyocera Corporation and Toyota Motor Corporation, has reported operating revenue of JPY1.130 trillion (USD11.11 billion) for its first quarter ended 30 June 2016 (Q1 FY2016), up 8.0% on an annualised basis, as operating income surged to JPY275.11 billion (+19.1%) and net profit attributable to the owners climbed 16.1% to JPY167.11 billion. Japan’s second largest carrier by subscribers said first quarter revenue growth reflected ‘steady progress in the domestic telecommunications business driven by an increase in mobile communications revenues and revenues from handset sales, as well as the impact of the conversion of Jupiter Shop Channel into a new consolidated subsidiary in order to expand the so-called au economic zone’.

In terms of the group’s Personal Services segment, which mainly provides mobile and fixed line communications services for individual customers in Japan, KDDI said operating revenues for April-June 2016 climbed 6.6% year-on-year to JPY868.46 billion and operating income increased by 23.1% to JPY220.53 billion, aided by increases in mobile communications revenues and revenues from handset sales. The company reported au net additions totalled 221,000 connections in the three-month period, noting a strong rise in new smartphone subscriptions to its ‘au Smart Value’ and new tablet plans. As at 30 June 2016, KDDI reported a total of 46.590 million au mobile subscriptions, as well as 3.804 million fibre-to-the-home (FTTH) users, up from 3.750 million three months earlier, and 5.213 million CATV subscribers (up 3.2% quarter-on-quarter). In addition, the group’s WiMAX unit UQ Communications continues to go from strength to strength, closing out June with 19.815 million users, up 76.2% y-o-y, before going on to break the 20 million barrier only last month.

Japan, KDDI (au)