KDDI profit grows 20% despite quake costs

KDDI profit grows 20% despite quake costs

Dylan Bushell-Embling  |   April 26, 2011
Japan's KDDI grew its annual profit nearly 20%, despite significant costs incurred from the Japanese earthquake.
The company has reported profit of 255.1 billion yen ($3.11 billion) for the year ending in March, even after losses from the disaster totalling an estimated 17.6 billion yen.
But the company said its number of suspended base stations had fallen from 1,933 in the aftermath the quake to 124 as of April 22, and that just 2,237 of the 390,000 fixed line services that had been disrupted remain out of commission.
KDDI said its restoration work so far has concentrated on recovering the area of network coverage, and that this phase is due to end on April 30. Work will then begin on recovering quality, including installing 53 new base stations, in a stage scheduled to last until September 30.
While the company's annual profit grew, operating revenues for the year fell 0.2% to 3.44 trillion won.
But the company said its capex for the year fell 14.4% to 443.7 billion yen. Ebitda also grew 1%, and ebitda margins increased to 27.3% from 26.9%.
KDDI's consolidated mobile business recorded net additions of nearly 1.8 million subscribers, while its fixed line business added 463,000.
The company is forecasting a 2% decline in net profit to 250 billion yen and a 0.7% increase in revenue for the current financial year.
Dylan Bushell-Embling

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