KDDI’s income up 7.1% boosted by mobile unit (Japan)Japanese operator KDDI saw its net income rise more than 7.1 percent boosted by performance at its mobile units. Operating revenues rose by 8.1 year-on-year to JPY 1.73 trillion, versus JPY 1.60 trillion in the year-ago period. Operating income was up 8.8 percent to JPY 249.6 billion from JPY 229.5 billion, as the mobile business (au and Tu-Ka) absorbed losses at the company’s fixed-line business. KDDI posted a net income of JPY 145.7 billion, up 7.1 percent from JPY 136 billion in H1 2006. The company reiterated its outlook of a full year operating profit of JPY 390 billion, revenues of JPY 3.5 trillion, and net income of JPY 220 billion.
Revenues at the mobile business went up 7.6 percent to JPY 1.38 trillion from JPY 1.28 trillion, and operating income totalled JPY 273.3 billion, up 12.6 percent from JPY 242.8 billion last years. Net income at the unit was JPY 160 billion, versus JPY 144.8 billion. The company registered net adds of 1.03 million, with 1.43 million adds at au and Tu-Ka shed 400,000, and KDDI expects to add 1.81 million in total this year. The Tu-Ka service will be terminated at the end of March 2008.The total number of mobile subscribers was 29.22 million at end-September. Churn rate at the au business is 1.03, up 0.08 percentage points. ARPU for au stood at JPY 6,400 compared with JPY 6,700 a year ago.
In the fixed-line business revenues decreased by 2.2 percent year-on-year to JPY 354.6 billion from JPY 362.4 billion. The business widened its operating loss to JPY 29.5 billion from JPY 16.8 billion. The fixed-business’ net loss totalled JPY 17.1 billion versus JPY 8.5 billion in H1 2006. The number of Metal-plus (voice) subscribers rose to 3.17 million while the number of Hikari-one (FTTH) subscribers increased to 670,000 at end-September. KDDI ended the period with 1.47 million ADSL subscribers, down from 1.55 million last year.
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