KDDI first-quarter revenues improve on mobile/FTTH gains, but net profit down

2 Aug 2019

Japanese fixed and mobile operator KDDI (au) has published its financial results for the fiscal first-quarter ended 30 June 2019, reporting that operating revenue rose 2.0% year-on-year to JPY1.246 trillion (USD11.5 billion) from JPY1.222 trillion, driven by solid uptick in mobile and fibre-optic broadband subscribers. The carrier closed out June with a total of 56.368 million KDDI au subscriptions, up from 55.225 million at the end of March, while FTTH connections increased from 4.508 million to 4.555 million. Additionally, the group’s WiMAX division UQ Communications reported 33.336 million users on its books at end-June 2019, up from 32.768 million in March 2019. However, operating income declined 11.4% y-o-y to JPY255.800 billion, mainly due to ‘an increase in selling, general and administrative costs and a decrease in gross profit from handset sales, despite an increase in sales’. Furthermore, the group’s net profit attributable to shareholders dropped 9.0% on an annualised basis to JPY162.553 billion, mainly impacted by the sharp decrease in operating income. EBITDA, meanwhile, was JPY427.659 billion (down from JPY430.362 billion), in a period in which CAPEX reached JPY181.776 billion, up from JPY168.095 billion in the year-ago quarter.

KDDI has also revealed some details of the company’s 5G roadmap, confirming plans to launch a pre-5G network in 2020, followed by 4G+5G (non-standalone 5G) services in 2021 and 5G (standalone 5G) in 2022. Working with rival SoftBank Corp, KDDI has already announced it will collaborate on joint 5G trials in rural areas of Japan.

Japan, KDDI (au), UQ Communications