KDDI forecast its mobile business to rebound in the first half of fiscal 2024 (ending 31 March 2024), as revenue declines steadily decreased over the past few quarters.

The operator predicted fiscal 2024 revenue to rise 2.3 per cent year-on-year to JPY5.8 trillion ($43.1 billion), driven by a recovery in mobile ARPU and double-digit gains in its Business Services segment.

Growth in new business areas is expected to offset declines in roaming revenue.

Net profit in fiscal Q4 2023 (the period to end-March) grew 22.7 per cent to JPY145.1 billion, aided by JPY80.3 billion in savings related to the closure of its 3G network.

Mobile service revenue fell 5.3 per cent to JPY390.9 billion and ARPU 4.7 per cent to JPY3,870.

Handset sales rose 4.9 per cent to JPY198.3 billion.

The operated stated 5G penetration increased to 53.9 per cent from 33 per cent in fiscal Q4 2022.

It aims to boost the number of 5G base stations from 52,000 to about 90,000 at end-March 2024.

Total mobile subscribers rose 3.4 per cent to 63.3 million.

Full-year capex declined 7.2 per cent to JPY627.5 billion and is forecast to drop to JPY620 billion in fiscal 2024.

Business Services improved 5.9 per cent to JPY302 billion.

IoT connected grew 30.6 per cent to 32 million.

Its other services segment, covering finance and energy, grew 28.8 per cent to JPY32.4 billion.