KDDI Q3 Profit Drops on Increased Costs

KDDI announced third quarter profit fell 2.8% as marketing costs surged along with their increase in new subscribers. Net income declined to 55 billion yen ($457 million) for the three months ended Dec. 31, from 56.6 billion yen a year earlier, while sales surged 13 percent to 858 billion yen from 761 billion yen a year ago. Operating profit fell 4.7% year on year in the third quarter to 86.6 billion yen, KDDI said.

KDDI plowed 22 percent more into handset subsidies this third quarter from a year ago as it raised its share of Japan’s 8.9 trillion yen ($74 billion) mobile phone market. The company today said it expects to limit the increase in commissions it pays to keep down the retail cost of handsets. Continue>>