Price, subscriber gains drive KDDI mobile growth - Mobile World Live

Price, subscriber gains drive KDDI mobile growth

14 MAY 2020

Japan-based operator KDDI recorded mobile growth in its fiscal Q4 (calendar Q1) despite a double-digit decline in handset sales, due to jumps in tariffs, subscribers and MVNO revenue.

Mobile service revenue increased 3.7 per cent year-on-year to JPY583 billion ($5.5 billion) as total average revenue per account (ARPA) rose 5.1 per cent to JPY8,040.

In a statement, the operator said Covid-19 (coronavirus) restrictions led to an increase in voice usage, but drops in handset revenue, mobile data usage and international roaming. It said the declines may continue, with reductions in retail store hours likely impacting new customer acquisition.

Smartphone sales slid 13.7 per cent to JPY137.7 billion: MNVO revenue jumped 42 per cent to JPY18.9 billion.

User growth
Its mobile subscriber base grew 6.2 per cent to 58.6 million.

The operator, which launched 5G service in late March, didn’t break down numbers by technology or outline its network deployment plans for the coming year.

Revenue from its business services unit increased 2.9 per cent to JPY243.5 billion.

Net profit fell 2.7 per cent to JPY108.9 billion, credited to a decrease in gross profit from handset sales and higher depreciation and sales promotion costs. Operating revenue was up 1.9 per cent to JPY1.33 trillion.

For the full fiscal year, net profit attributable to shareholders rose 3.6 per cent to JPY639.8 billion, with operating revenue increasing 3.1 per cent to JPY5.24 trillion.

Its outlook for fiscal 2021 forecast net profit to remain at the same level and telecoms service revenue to dip marginally to JPY4.55 trillion, with a slight increase in mobile to JPY2.28 trillion despite a 1.1 per cent decline in ARPA.

MVNO revenue, thanks to a deal with Rakuten Mobile, is expected to rise 36 per cent to JPY90 billion.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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