KDDI books solid if unspectacular Q3 performance

2 Feb 2021

Japan’s KDDI (au) has published its financial results for its fiscal third quarter ending 31 December 2020, with operating revenue improving 3.6% year-on-year to JPY1.387 trillion (USD13.2 billion) from JPY1.338 trillion in the corresponding year-ago quarter, and EBITDA of JPY467.926 billion up from JPY466.416 billion. However, net profit attributable to shareholders declined by 4.1% on an annualised basis to JPY175.826 billion and operating income slipped to JPY282.279 billion from JPY290.462 billion previously. The telco attributed the fall in profit to rising depreciation and amortisation expenses, and an increase in fixed asset write-offs, but welcomed the increase in quarterly revenue which it said reflected increased 5G handset sales, subscriber gains and rising ARPU. Boosted by the launch of the Apple iPhone 12 range in December, KDDI saw handset sales climb 11.4% and overall 5G smartphone sales top 1.2 million by end-2020. Having invested over JPY157 billion in its networks in the period under review – enabling it to start offering 5G in all prefectures in December, as it strives to deploy 50,000 base stations by 31 March 2022 – the company reported having added a net two million mobile subscribers to close out December with a total of 60.121 million; ARPA rose by 4.6% to JPY8,130, it said.

Japan, KDDI (au)