KDDI, SoftBank Enjoy Record Operating Profits in FY 2019

Economy

Tokyo, May 14 (Jiji Press)--Major Japanese mobile phone carriers KDDI Corp. <9433> and SoftBank Corp. <9434> saw their group operating profits hit record highs in fiscal 2019, which ended in March, while rival NTT Docomo Inc. <9437> posted a lower profit, according to their earnings reports released by Thursday.

KDDI's operating profit grew 1.1 pct from the previous year to 1,025.2 billion yen thanks to its brisk financial and settlement services although its smartphone sales were sluggish due to stricter regulations on discounts on mobile phone handsets.

Operating profit at SoftBank was up 11.4 pct at 911.7 billion yen. Its revenue and net profit also hit record highs, rising by 4.4 pct to 4,861.2 billion yen and by 2.3 pct to 473.1 billion yen, respectively, on the back of affiliate Z Holdings Corp.'s acquisition <4689> of online fashion retailer Zozo Inc. <3092> last year.

NTT Docomo saw its revenue drop 3.9 pct to 4,651.2 billion yen, the first decline in five years, following the launch in June 2019 a subscription plan to cut communications fees by up to 40 pct and a drop in smartphone sales due to the tighter handset discount rules.

Its operating profit sagged 15.7 pct to 854.6 billion yen, and net profit shrank 10.9 pct to 591.5 billion yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press