KDDI profit grows 32.9% in Q3

Dylan Bushell-Embling
telecomasia.net

Japan's KDDI has reported a 32.9% increase in net profit for its fiscal third quarter, despite recording an extraordinary loss from overseas subsidiaries due to accounting irregularities at Hong Kong unit DMX.

Net income grew to 322 billion yen ($2.69 billion), on the back of an 11.8% increase in operating income to 633.2 billion yen.

Operating revenues meanwhile grew 5.5% to 4.33 trillion yen, thanks in part to a steady rise in mobile communications revenues, which improved by 75.1 billion yen year-on-year.

Mobile unit au recorded a 5.1% year-on-year increase in customer net additions to 1.1 million, while au ARPU grew 0.7% to 4,230 yen.

KDDI is maintaining its goal of achieving double-digit growth in operating income for both the current and the next financial year. For the third quarter next year, the operator is targeting operating revenues of 4.4 trillion yen and net income of 490 billion yen.

KDDI also revealed it had recorded an extraordinary loss from overseas subsidiaries of up to 33.79 billion yen after SGX-listed Hong Kong subsidiary DMX Technologies Group commenced an investigation into apparent irregular accounting practices in 2008 and 2009.

The parent company has launched its own investigation into the matter, and has formed a committee of experts to investigate KDDI's capital participation in DMX, as well as the causes of the incidents.