World VoIP NewsRestructuring costs drag down KDDI fullyear profitsRestructuring costs drag down KDDI fullyear profits

Restructuring costs drag down KDDI fullyear profits

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Japan’s second largest telecoms operator KDDI Corp said consolidated operating revenues for the fiscal year.
Japan’s second largest telecoms operator KDDI Corp said consolidated operating revenues for the fiscal year to 31 March 2010 fell 1.6% year-on-year, while a one-off JPY61.1 billion (USD656.3 million) extraordinary loss (including restructuring costs related to streamlining its fixed line business) helped drive down net income, which fell 4.5% from the previous year to JPY212.8 billion.

Full-year consolidated CAPEX reached JPY518 billion in the year to 31 March 2010, down 9.9% year-on-year from JPY575.1 billion a year earlier, of which JPY376.8 billion was spent on mobile (JPY432.1 billion previously), and JPY138.7 billion for fixed line services (JPY140.6 billion).

Operating revenues at KDDI’s fixed line business dipped 1.1% y-o-y to JPY839.2 billion, it said, although operating income recovered by JPY12.3 billion to JPY44.2 billion. Net income (losses) at the unit however, widened from JPY43.1 billion to JPY68.4 billion. Fixed line EBITDA grew 15% y-o-y to JPY94.7 billion. As at 31 March 2010 KDDI had a total of 5.94 million fixed access lines, of which fibre-to-the home (FTTH) increased to 1.513 million from 1.099 million. At the same date KDDI counted some 1.031 million ADSL connections (down from 1.224 million a year earlier), 2.852 million Metal-plus telephony users (3.130 million previously), 960,000 Cable-plus phone users (604,000), and 972,000 CATV users from 722,000 a year before.

KDDI’s mobile business said operating revenues declined by 2.5% year-on-year to JPY2.650 billion and operating income slipped 3.5% to JPY483.7 billion, although the number of ‘au’ subscribers climbed from 31.87 million to 32.80 million, including 29.90 million WIN (EV-DO) users, a market share of 28.4%. KDDI said the fall in revenues and income at its mobile division were impacted by a decrease in voice ARPU caused by a shift in customers to its ‘simple course’ tariff plans and an increase in costs related to the reorganisation of the 800MHz band. Mobile EBITDA was broadly stable at JPY826.8 billion, from JPY821.9 billion previously.

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