KDDI 1H Results FYE 2010
KDDI announced their 1H results FYE March 31st 2010 – interesting comments related to Android and LTE. [JPN]
The Webcast with English translation is Here and the presentation .PDF is also in English Here
Consolidated Basis
Operating revenues declined by 1.4% yoy. Operating income declined by 4.5% yoy. This performance represented 53.4% of the full-year’s operating income forecast.
Mobile Business
Operating revenues declined by 1.7% yoy. Operating income declined by 5.5% yoy.
No. of “au”subs at end-September was 31.23M with a cumulative share at 28.5%.
Handset no. of unit sold declined 14% yoyto 4.77M.
Handset units in inventory at end-September declined to an appropriate level of 0.83M.
Two new flat-rate price plans introduced in August
Net additions of mobile Internet subs was 319k with a share of 38.8%.
Churn rate in 2Qwas 0.72%, down 0.03points yoy.
In 2Q, ARPU remained firm at 5,600jpy (3,330 Voice and 2,270 data)
78% of users are with WIN (EV-DO) platform with 71% on flat-rate data plan
Machine Translation:
KDDI announced the interim account at the period on October 23 and March, 2010. President and Representative Director and chairman of this company showed posture in which it aimed at the profit increase in the latter six months of the term in the interview because of the reduction in the terminal procurement cost and the expansion of the dissemination model, etc.
As for the content of closing of accounts, sales of the consolidation were 1,723,100,000,000 yen of corresponding ratio to the previous year 1.4% decrease, and the operating profit became 251 billion yen of 4.5% decrease. Sales were 1,337,900,000,000 yen of corresponding ratio to the previous year 1.7% decrease for the mobile communication business, and the operating profit became 272 billion yen of corresponding ratio to the previous year 5.5% decrease and an income decrease profit decrease.
The number of the terminal sales in the first six months of the term has decreased to 4.47 million by corresponding ratio to the previous year by 14%. Moreover, Mr. Onodera explains, “The terminal procurement cost rose while the commodity power of the terminal had improved surely, too” by such high specs model’s turning on.
However, about “The terminal shipment number 10 million” that hangs as a target at the full business year｢It doesn’t change it now. If we make an effort, the figure that can be done. Bullish posture is shown. The decrease of the terminal cost is aimed at in the latter six months of the term, and “The terminal of middle range corresponding to basic needs of the Japanese pampas grass sheath waterproof etc. is enhanced, and the terminal cost of the average is reduced” policy. A high-ranking model at an old season is thought that the purpose is also for such a measure to expand the dissemination model low-cost in the model in the winter of autumn though has placed “EXILIM cellular phone CA004” that changes the minor and “SH004” in middle range.
Moreover, the control of the terminal stock also strengthens the approach in the latter six months of the term. This is because the bounty to the shop is piled up to cancel the held terminal stock, it increases, and the terminal was sold at a low price as a result though 61% of the user who contracts a simple course buys the terminal by “Lump sum payment” in the second quarter. The average in the first quarter of 2010 rose, and pressed the achievement for 41,000 yen with 44,000 yen on the average as a result of unifying to the introduction of the new fixed amount service (“Specified telephone call fixed amount” and “Double fixed amount super-light. “) and turning on the selling commission intensively in the second quarter while the selling commission average unit price at the period on March, 2009 was 39,000 yen.
However, the terminal stock is assumed to be return to 830,000 and “Proper level” (Mr. Onodera) at the end of September, and the note power to the management of a proper stock and the reduction in the selling commission when the future. The selling commission at the full business year is expected to be reduced up to 36,000 yen on the average.
It thinks the influence that this gives in the latter six months of the term to be “It is hardly” (Mr. Onodera) though this company reduces the amount of the support of “Full support course” that reduces the terminal purchase price contingent on the continuance use for two years from 21,000 yen to 16,800 yen in December. It is the background that there is only 10 percent of the whole, and a lot of users are shifting to purchase in a simple course in the contract in the full support course in the second quarter.
Mr. Onodera points out, “The one and the data communication card that ARPU of the communication module etc. is low, etc. exist together, and the comparison of the nets becomes difficult” the number of contracts that Telecommunications Carriers Association (TCA) announces. He or she emphasized becoming of the share after the connection of IP (Internet connection for carrying)38.8% and industry-leading by 319,000 as for the number of period pure increases while the share in four careers became 18.2%380,000 as for the number of pure increases in the first six months of the term of this company seen from the entire contract. Moreover, it touched 0.72% of 0.03 point decrease in corresponding ratio to the previous year the churn rate, and the improvement appealed.
The number of MNP of pure increases is expanded, and expected for the effect of the new fixed amount service to be going to have become visible by this company in August and September. However, Mr. Onodera showed the opinion “It will not be easy to think the availability of MNP went up greatly in the future”.
– Is the platform reviewed at the time of the introduction of LTE? Android examines next year’s introduction.
The remark reached in the interview for the problem of KCP + and the platform of the future. Mr. Onodera assumed that the operation speed was improved by the improvement while admitting, “It was true that the operation of the first KCP + was slow” now, and showed KCP confidence , saying that “Come even at the level that was not inferior”.
Moreover, it was revealed to unify to the introduction of LTE and to examine a new platform. This company is joining group “LiMo Foundation” that develops the platform of the Linux base now and thinks as “LiMo is one of the choices” (Mr. Onodera).
Moreover, the comment “Examine it in the direction that would be introduced next year” went out from the Android terminal, too. The platform of the terminal will not be decided to one. However, the platform’s in the main current what it becoming advances to examine. (Mr. Onodera)
About 21,700 and unable to move upward of the number of contracts of UQ communications that this company becomes a largest shareholder at the end of September｢It is a problem that the area maintenance is later for the plan at first. It contracts almost for the customer who was able to use it in the region that I use by a free trial. Anyway, the area maintenance is important, and it supports it there. It commented.