Primary tabs

KDDI's net plunges 17%

Nicole McCormick
telecomasia.net
Rising handset costs and tough competition continue to plague KDDI, which posted a 16.8% decline in Q2 profit on Friday.
 
Japan’s second integrated telco said quarterly earnings had fallen 16.8% year on year to 71.92 billion yen ($820.4m).
 
Consolidated operating profit was also down 8.8% to 129.30 billion yen, with revenues increasing 1.4% to 866.02 billion yen.
 
The firm’s CDMA mobile business continued to struggle, with net profits and operating income tumbling 21.7% and 12.6% respectively. Mobile revenues were up by just 0.1%.
 
ARPU also fell 7.9% to 5,160 yen due to falling voice ARPU on the back of the company’s Simple Course promotion.
 
Meanwhile, fixed-line operating losses reduced to 5.4 billion yen, approximately half of the previous year, thanks to a 5.7 billion yen gain from the sale of shares in Jupiter Telecommunications.
 
The company left its full-year forecasts unchanged.

MORE ARTICLES ON EARNINGS, JAPAN, KDDI

Commentary

Drive for digital champions fuels APAC VC boom

Annie Turner/TM Forum

Venture capital investments in Asia soared to $10.1b in the second quarter

Annie Turner/TM Forum

Venture capital investments in Asia soared to $10.1b in the second quarter

Dimitris Mavrakis/Ovum

A few high-level concepts are likely to define the new 5G standard, but be advised: they involve radical and disruptive changes to the existing network