Handset sales drop hinders KDDI

5G News

KDDI reported double-digit profit gains and stable revenue growth across all business units in fiscal Q1 2021, though device sales fell.

In a statement, the operator noted there was no significant impact on its consolidated results from Covid-19 (coronavirus), but acknowledged it became apparent the pandemic was hurting handset sales.

It is “carefully analysing the impact on operating results from [fiscal] Q2 onward”.

Net profit period rose 12.2 per cent year-on-year to JPY182.3 billion ($1.7 billion), mainly driven by an increase at its electric power business. Operating revenue was flat at JPY1.24 trillion, as the decrease in handset sales offset increases from its mobile, business services and Life Design units.

Mobile revenue increased 2.6 per cent to JPY561 billion and MVNO sales by 47.5 per cent to JPY21.35 billion.

Handset sales dropped 18.4 per cent to JPY115 billion.

ARPA rose 4.6 per cent to JPY7,790. The operator added nearly 2.9 million subscribers, ending June with 56.4 million.

Life Design revenue increased 4.8 per cent to JPY283 billion; business services sales were up 5.8 per cent to JPY234 billion.

In April, the operator agreed to share 5G infrastructure with rival SoftBank. KDDI said the network had about 10,000 base stations at launch in late March and planned to expand to 50,000 by end-March 2022.


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