KDDI Q2 profit down 1.9%, but revenues up to JPY1.22 trillion

2 Nov 2017

Japan’s second largest telecoms operator by subscribers KDDI has reported net income of JPY155.97 billion (USD1.37 billion) in its fiscal second-quarter ended 30 September 2017, down 1.9% from JPY159.04 billion in the year-earlier period, due in part to a rise in strategic investments aimed at generating future growth. However, operating revenue increased by 3.9% to JPY1.217 trillion and operating income of JPY261.12 billion compared favourably to JPY257.52 billion previously, and EBITDA edged up 1.3% to JPY405.43 billion; EBITDA margin of 33.3% was 0.9pp lower year-on-year. Second-quarter CAPEX, meanwhile, stood at JPY122.14 billion – up JPY26.04 billion y-o-y. For the full year, KDDI is targeting operating income of JPY950 billion, up from JPY913 billion in the prior financial year – and to date, has achieved 57.1% towards this target – on full year operating revenue of 4.950 trillion (it only made 48.8% progress towards this target in the first half).

KDDI closed out 30 September 2017 with a total of 49.665 million mobile (au) subscriptions, compared to 47.237 million in the same period of 2016, while its fixed broadband (fibre-to-the-home [FTTH]) arm had amassed 4.264 million users (up from 3.844 million) and WiMAX broadband unit UQ Communications had 27.104 million connections (21.626 million). MVNO subscriptions, meanwhile, had increased dramatically from 241,000 to 1.265 million. CATV subscribers reached 11.073 million, up from 10.853 million previously.

Japan, KDDI (au)