KDDI Posts Strong Quarterly Results
Japanese telco KDDI has reported net income of JPY75.7 billion (USD652.2 million) for the three months to the end of June, up 44% compared with the corresponding period last year. The mobile division continues to comfortably outperform the fixed line business, with net income from wireless services up 35% to JPY77.8 billion compared with a net loss from the wireline division of JPY4.1 billion. Overall sales were up 12% to JPY798.4 billion. For the full year to March 2007 KDDI expects sales to come in at JPY735 billion (up 19% year-on-year) and net income to drop 2.4% to JPY186 billion.
Meanwhile, according to reports citing people involved in the transaction, Softbank Corp plans to borrow JPY1.4 trillion (USD12 billion) to finance the acquisition of Vodafone KK. If successful it would be Japan’s biggest ever asset-backed loan to refinance debt. Softbank’s founder, Masayoshi Son, is seeking to reassure investors concerned with falling profits at the cellco. Shares in the Tokyo-based company fell 33% since the takeover was announced in March.