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KDDI, Japan's No. 2 mobile carrier, says profit fell slightly in 3rd quarter

KDDI, Japan's No. 2 mobile carrier, says profit fell slightly in 3rd quarter

Japanese mobile phone carrier KDDI Corp. on Thursday reported a 1.7 percent dip in profit in the October-December period due increased manufacturing costs tied to an expansion of its subscriber base.
KDDI, the nation's second-biggest wireless carrier after NTT DoCoMo, said its group profit fell to 55.01 billion yen (US$457 million; euro351.4 million) for the October-December quarter, from 56.57 billion yen the previous year.
However, group third-quarter sales jumped to 858 billion yen (US$7.13 billion; euro5.48 billion), from 761 billion yen a year earlier, the company said.
KDDI attributed the profit fall to a decline in operating income, which came as a result of booming demand for phones following the introduction of number portability to Japan's wireless phone business last October, company spokeswoman Nami Terai said.
The company said it had added 465,000 new subscribers since the launch of number portability, which allows users to switch carriers without changing phone numbers.
For the April-December period, KDDI said its group profit rose 20.9 percent to 191.0 billion yen (US$1.59 billion; euro1.22 billion) from 158.0 billion yen the same period the previous year.
Sales climbed 10.4 percent to 2.463 trillion yen (US$20.45 billion; euro15.72 billion) during the first three quarters from 2.23 trillion yen a year earlier, the company said.
Competition has been heating up in Japan's mobile phone business, especially after the introduction of number portability.
Softbank Corp. Chief Executive Officer Masayoshi Son announced Thursday that the company's mobile phone division had signed up 97,000 new subscribers in December _ a significant jump in popularity for Japan's third-largest mobile phone carrier.
KDDI left its earnings forecast unchanged for the full fiscal year through March, projecting a group net profit of 186 billion yen (US$1.54 billion; euro1.18 billion).
However, the company raised its projected sales forecast to 3.33 trillion yen (US$27.7 billion; euro21.3 billion), up from 3.29 trillion yen due to the expansion of its subscriber base.
KDDI announced its earnings after the close of trade on the Tokyo Stock Exchange, where its share price lost 0.81 percent o 849,000 yen (US$7,050; euro5,420).


Updated : 2020-11-30 07:36 GMT+08:00