KDDI Corp has reported a 24% increase in net profits in second quarter which ended 30 September. This rise is mainly due to lower handset subsidies. According to the operator, net income ascended to JPY78.7 billion in the period under review, from JPY63.3 billion in the three months to 30 September 2007, although revenues slipped 1.5% to JPY876.8 billion.

With the introduction of instalment-payment plan the company introduced in June this year helped reduce costs for phone subsidies and also enabled it to contend with lower income after it cut its tariff plans to entice subscribers away from rivals NTT DoCoMo and Softbank Mobile, media reported. KDDI repeated its from April for profit and sales revenue to augment this fiscal year. The operating profit mounted 27% y/y to JPY138.5 billion in the second quarter.

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