KDDI Corp., the nation’s No. 2 telecom operator, announced Friday its earnings results for fiscal 2000, which ended in March.
It reported pretax profits of 50.55 billion yen and net profits of 13.43 billion yen on group sales totaling 2.27 trillion yen.
KDDI was established in October after the merger of telecom firm DDI Corp. with KDD Corp. and IDO Corp.
By combining the three firms’ figures, it can be seen that sales rose 1.3 percent, pretax profits increased 7 percent and net profits surged 318 percent from the previous year, according to the company.
Interest-bearing debts meanwhile decreased 2.6 percent from the previous year. These still stood, however, at 2.097 trillion yen, a heavy load for a telecom company known for its massive infrastructure investments.
In announcing a corporate restructuring plan the same day, KDDI President Yusai Okuyama said that KDDI plans to absorb its mobile unit au Corp. by Oct. 1 in a bid to integrate its mobile business and Internet-related operations.
Mobile and Internet-related businesses are the key sectors on which KDDI is now focusing. More than 90 percent of the firm’s investments will be in these two sectors after March 2002, Okuyama said.
Okuyama meanwhile denied rumors that KDDI is considering selling off its Tuka unit, KDDI’s operator of older-generation cellular phone systems.
KDDI officials admitted that a number of companies — both overseas and domestic — have approached KDDI regarding the acquisition of the Tuka unit.
But Okuyama stressed that KDDI will continue to operate the business, at least for the foreseeable future.
KDDI is instead considering selling off a number of assets in an effort to reduce its heavy debts. These could include its head office building in Tokyo’s Shinjuku Ward and another building in the Otemachi district of the capital, Okuyama said.
For fiscal 2001, KDDI is projecting group sales of 3.01 trillion yen, up 6.9 percent, pretax profits of 110 billion yen, up 84.7 percent, and net profits of 64 billion yen, up 195.4 percent from the previous year.
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