KDD Corp. said Thursday that its consolidated net balance returned to the black in fiscal 1999, due to brisk earnings from domestic phone services and a number of one-off factors, including mammoth gains from securities sales.
For the year through March 31, the international telecom titan, which recently diversified into domestic telecom services, said its consolidated net profit was 7.31 billion yen, a turnaround from last year’s loss of 1.93 billion yen.
Group pretax profit ballooned to 23.11 billion yen, up 503.3 percent from 3.83 billion yen. Operating revenues came to 597.31 billion yen, up 47.2 percent.
Revenues from its international phone division took a beating from intensified competition, the company said, but revenues from domestic phone services increased, as did those from multimedia services, considered by the company to be a main revenue earner for the group down the track.
As a result, the combined revenues of the group’s telecommunications sections came to 381.4 billion yen, up from 317.42 billion yen.
KDD said it logged 36.26 billion yen from the sale of securities holdings with latent gains, almost triple the previous fiscal year.
The company said it booked revenues of 157.8 billion yen as a result of the ongoing construction of undersea cables, including one linking the Chinese mainland and the United States.
The group also pocketed 35 billion yen as a result of the marketing to corporate users of the high-capacity JIH cable.
Looking ahead, KDD forecast its group will be able to post 7 billion yen in pretax profit and 3 billion yen in net profit in the first six months of the current fiscal year, on projected revenues of 333 billion yen.
The company stopped short of giving projections for the entire 2000 business year, however.
KDD said in April that it will merge with DDI Corp. and IDO Corp. on Oct. 1 this year to create Japan’s second-largest telecom company, rivaling the group led by Nippon Telegraph and Telephone Corp.
DDI is a long-distance carrier belonging to the Kyocera Corp. group while IDO is a mobile-phone operator affiliated with Toyota Motor Corp.