KDDI full year profits, revenues climb on Life design services

15 May 2020

Japanese carrier KDDI (au) has published its financial results for the year ending 31 March 2020, highlighting that operating revenue increased 3.1% year-on-year to JPY5.237 trillion (USD48.93 billion) from JPY5.080 trillion, operating income improved by 1.1% to JPY1.025 trillion, EBITDA rose 9.5% y-o-y to JPY1.751 trillion from JPY1.599 trillion – with an EBITDA margin of 33.4% (up 1.9pp) – and net income rose by 3.6% to JPY639.8 billion from JPY617.7 billion in FY2018/19. The company noted that rising turnover was attributable to ‘an increase of revenue in Life design domain coming from an increase revenue of the energy business and expanding the finance business by making au Jibun Bank Corporation a consolidated subsidiary, despite a decrease of handset sale revenues’. The company projects a consolidated operating revenue of JPY5.250 trillion (up 0.2% y-o-y) and an operating income of JPY1.030 trillion (up 0.5%) for the fiscal year ending 31 March 2021, as the second year of its mid-term plan. It also plans dividends per share of JPY120 for the year.

The carrier, which markets mobile services under the ‘au’ branding, closed out March 2020 with a total of 58.643 million mobile subscribers, compared to 55.225 million one year earlier. It also reported having 3.068 million MVNO connections on its books – and targets 3.700 million by end-March 2021 – and 34.472 million WiMAX customers for its UQ Communications unit. Further, KDDI said it had 4.637 million fibre-to-the-home (FTTH) subscribers at the end of the year, up from 4.508 million in FY2018/19.

In March 2020 KDDI began providing au-branded 5G commercial service in ‘certain areas’ of 15 of Japan’s prefectures. Alongside the launch of this service, it introduced four new pricing plans for 5G-compatible smartphones and is in the process of releasing a seven-model line-up of au’s first ever 5G-compatible smartphones, ranging from high-spec models with 8K high-resolution cameras to mid-range models with carefully selected features.

Japan, KDDI (au)