KDDI Corp. reported profit rose 49 percent in the third quarter because of lower payments for handset subsidies.
Net income increased to ¥102.8 billion in the three months that ended Dec. 31, up from ¥69 billion a year earlier, Japan's second-biggest mobile phone carrier said Friday. Sales fell 2.4 percent to ¥882.4 billion.
KDDI maintained its outlook for higher profit this year and cut the sales forecast because its installment payment plan, introduced in June, reduced handset subsidy expenses and deterred users from changing their phones frequently. The cost cut helped KDDI cope with lower revenue after reducing service charges to lure users from NTT DoCoMo Inc. and Softbank Corp.
Operating profit, or sales minus the cost of goods sold and administrative expenses, increased 19 percent to ¥143.8 billion, the Tokyo-based firm said.
KDDI said it sold 2.45 million mobile phones during the quarter, down 34 percent from a year earlier. Expenses to subsidize the cost of handsets fell 39 percent to ¥79 billion.
Net income will probably rise 15 percent to ¥250 billion in the year ending March 31, and operating profit may gain 11 percent to ¥443 billion.
Sales are forecast to fall 2.7 percent to ¥3.5 trillion, less than the ¥3.7 trillion projected earlier.
