KDDI au quarterly results: voice ARPU declines faster for data ARPU to fill the gap

KDDI au posted its 1Q financials results for the fiscal year ending March 2008. Here are some highlights:

• The number portability rule continues to play out well for au as the total mobile number portability net additions (since Oct. 24, 2006) hit the one million mark in June 2007.
• In 1Q, net additions reached 520,000 customers.
• In an accord with healthy additions, the churn rate also improved, going down to 0.97% from 1.04% a year ago.
• While data ARPU went up 5.6% or JPY110 (1 dollar = 120.08 yen as of today) from last year it was not sufficient to cover the losses in voice ARPU, which declined by 10.1% or JPY490 for the same period. This resulted in the total ARPU declining by 5.6% or JPY380 year over year. For comparison, a year ago the total ARPU stood at JPY6,810, while now it is already JPY6,430. For the same period, data ARPU grew from JPY1,970 to JPY2,080.
• KDDI is pessimistic about its ability to reverse the situation with the declining ARPU, estimating its overall ARPU would fall further, including data ARPU. The main factor behind that is the amplified mobile data price war among national carriers in Japan.

Source: KDDI