KDDI reports spike in Q3 profit on solid wireless gains

4 Feb 2020

Japan’s KDDI Corp recorded strong profit growth in its fiscal third quarter ending 31 December 2019, attributing the improvement to steady gains in mobile service revenue driven by continued customer additions and rising tariffs. The carrier booked net income (attributable to shareholders) of JPY183.331 billion (USD1.69 billion) in the period under review, up 14.3% from JPY160.295 billion in the corresponding period of 2018, as quarterly operating revenue grew 2.2% to JPY1.318 trillion, and operating income increased to JPY290.462 billion from JPY261.289 billion previously. Group EBITDA, meanwhile, increased by 14.7% to JPY466.416 billion from JPY406.709 billion, while third-quarter CAPEX was JPY137.477 billion, compared to JPY152.721 billion previously. Mobile subscriptions grew 7.0% y-o-y to 58.093 million, with monthly average revenue per account (ARPA) rising 4.2% to JPY7,770. Furthermore, KDDI recorded a total of 4.617 million fibre-to-the-home (FTTH) users, up from 4.491 million y-o-y, while its UQ WiMAX unit had 34.050 million subscribers on its books by end-2019 (2018: 31.523 million). It also said that total IoT connections surpassed ten million by end-December.

In a statement, KDDI Corp highlighted the production of a management plan covering fiscal 2019 to 2021, which aims to ensure sustainable growth while allowing for swift response to the changing business environment. It plans to invest in customer acquisition, and its digital payment business is running a campaign to give JPY7 billion of cash back to ‘au Pay’ customers in the current quarter.

Japan, KDDI (au)