reports
- Dan Baker
Morningstar | In Line Result; Upcoming Rakuten Entry is an Overhang; F...
KDDI’s fourth-quarter fiscal 2018 result (quarter-ending March 2019) was within our estimates and guidance for both this year and the medium term was solid in the face of potential increasing competition. Revenue increased by 2.6% with operating income up 28% and the company added JPY 5 to the previously guided dividend announcing a total of JPY 105 per share for fiscal 2018 and targeting JPY 110 for fiscal 2019. KDDI is guiding for 2.4% revenue growth, 0.6% operating income growth and 0.4% ne...
- Dan Baker
Morningstar | In Line Result; Upcoming Rakuten Entry is an Overhang; F...
KDDI’s fourth-quarter fiscal 2018 result (quarter-ending March 2019) was within our estimates and guidance for both this year and the medium term was solid in the face of potential increasing competition. Revenue increased by 2.6% with operating income up 28% and the company added JPY 5 to the previously guided dividend announcing a total of JPY 105 per share for fiscal 2018 and targeting JPY 110 for fiscal 2019. KDDI is guiding for 2.4% revenue growth, 0.6% operating income growth and 0.4% ne...
- Dan Baker
In Line Result; Upcoming Rakuten Entry is an Overhang; FVE Retained at...
KDDI’s fourth-quarter fiscal 2018 result (quarter-ending March 2019) was within our estimates and guidance for both this year and the medium term was solid in the face of potential increasing competition. Revenue increased by 2.6% with operating income up 28% and the company added JPY 5 to the previously guided dividend announcing a total of JPY 105 per share for fiscal 2018 and targeting JPY 110 for fiscal 2019. KDDI is guiding for 2.4% revenue growth, 0.6% operating income growth and 0.4% ne...
- Dan Baker
Morningstar | Slightly Below-Par 3Q for KDDI; Potential Price Cuts, Ra...
KDDI’s fiscal 2018 third-quarter result (quarter ended December 2018) was slightly below our estimates, with revenue decreasing 2.6% and operating income decreasing 3.7%. However, management’s fiscal 2018 guidance for operating income growth of 5.9% and dividend growth of 11% to JPY 100 per share remains. The big Japanese telecom issues of NTT DoCoMo’s upcoming price cuts and Rakuten’s entry remain to play out. Three months ago, NTT DoCoMo foreshadowed price decreases that will return as...
- Dan Baker
Slightly Below-Par 3Q for KDDI; Potential Price Cuts, Rakuten Entry Ov...
KDDI’s fiscal 2018 third-quarter result (quarter ended December 2018) was slightly below our estimates, with revenue decreasing 2.6% and operating income decreasing 3.7%. However, management’s fiscal 2018 guidance for operating income growth of 5.9% and dividend growth of 11% to JPY 100 per share remains. The big Japanese telecom issues of NTT DoCoMo’s upcoming price cuts and Rakuten’s entry remain to play out. Three months ago, NTT DoCoMo foreshadowed price decreases that will return as...
- Dan Baker
Morningstar | KDDI Moat Trend Reduced to Negative on Pricing Pressure ...
We retain KDDI’s narrow moat based on efficient scale but reduce KDDI’s moat trend to negative. We expect some pricing pressure in the foreseeable future, with Rakuten entering the key mobile market and the Government also pushing for price decreases. We retain our fair value estimate of JPY 3,400 and USD 15 per ADR, which was lowered after the second quarter fiscal result in response to the announced price reductions from its competitor, NTT DoCoMo. At our new fair value, KDDI would trade o...
- Dan Baker
KDDI Moat Trend Reduced to Negative on Pricing Pressure from Rakuten a...
We retain KDDI’s narrow moat based on efficient scale but reduce KDDI’s moat trend to negative. We expect some pricing pressure in the foreseeable future, with Rakuten entering the key mobile market and the Government also pushing for price decreases. We retain our fair value estimate of JPY 3,400 and USD 15 per ADR, which was lowered after the second quarter fiscal result in response to the announced price reductions from its competitor, NTT DoCoMo. At our new fair value, KDDI would trade o...
- Dan Baker
Morningstar | Solid Result, but Potential Price Cuts and Rakuten Entry...
KDDI’s second-quarter fiscal 2018 result (quarter ending September 2019) was broadly in line with our estimates, with revenue increasing by 1.9% and operating income increasing by 4.3%. Managements’ fiscal 2018 guidance for operating income growth of 5.9% and dividend growth of 11% to JPY 100 per share remains unchanged. However, its key competitor, NTT DoCoMo, foreshadowed price decreases on Oct. 31 that will return up to JPY 400 billion to customers and see operating profit decline with a ...
- Dan Baker
Solid Result, but Potential Price Cuts and Rakuten Entry Are Overhangs...
KDDI’s second-quarter fiscal 2018 result (quarter ending September 2019) was broadly in line with our estimates, with revenue increasing by 1.9% and operating income increasing by 4.3%. Managements’ fiscal 2018 guidance for operating income growth of 5.9% and dividend growth of 11% to JPY 100 per share remains unchanged. However, its key competitor, NTT DoCoMo, foreshadowed price decreases on Oct. 31 that will return up to JPY 400 billion to customers and see operating profit decline with a ...
- Dan Baker
KDDI Facing Challenges From Rakuten and Government-Led Price Decreases
KDDI's first-quarter fiscal 2018 result (quarter-ending June 2019) was broadly in line with our estimates with revenue increasing by 1.9% and operating income by 2.6%. Management's fiscal 2018 guidance for operating income growth of 5.9% and dividend growth of 11% to JPY 100 per share remains unchanged. We leave our fair value estimate of JPY 3,700 per share and USD 17 per ADR. At our fair value, KDDI would trade on a price/earnings ratio of 14.7 times with a 2.7% dividend yield. We believe th...
- Dan Baker
Morningstar | Solid 1Q, Full-Year Guidance Unchanged for KDDI; Potenti...
KDDI's first-quarter fiscal 2018 result (quarter-ending June 2019) was broadly in line with our estimates with revenue increasing by 1.9% and operating income by 2.6%. Management's fiscal 2018 guidance for operating income growth of 5.9% and dividend growth of 11% to JPY 100 per share remains unchanged. We leave our fair value estimate of JPY 3,700 per share and USD 17 per ADR. At our fair value, KDDI would trade on a price/earnings ratio of 14.7 times with a 2.7% dividend yield. We believe th...
- Dan Baker
Solid 1Q, Full-Year Guidance Unchanged for KDDI; Potential Rakuten Ent...
KDDI's first-quarter fiscal 2018 result (quarter-ending June 2019) was broadly in line with our estimates with revenue increasing by 1.9% and operating income by 2.6%. Management's fiscal 2018 guidance for operating income growth of 5.9% and dividend growth of 11% to JPY 100 per share remains unchanged. We leave our fair value estimate of JPY 3,700 per share and USD 17 per ADR. At our fair value, KDDI would trade on a price/earnings ratio of 14.7 times with a 2.7% dividend yield. We believe th...
- Dan Baker
Rakuten Announces Plan to Become the Fourth Mobile Operator in Japan; ...
Rakuten’s website tells us that in Japanese, Rakuten stands for "optimism." We believe its plans to become the fourth operator in the Japanese mobile telecom market are optimistic, to say the least! The company plans to raise debt of a maximum of JPY 200 billion to build out a mobile network in Japan, which would launch in 2019, with peak debt funding planned to reach JPY 600 billion by 2025, before the mobile business becomes free cash flow positive and can begin to pay down the debt. The bus...
- Dan Baker
KDDI Produces OK 2Q; FVE Retained at JPY 3,700
KDDI’s second-quarter fiscal 2017 result (quarter-ending September 2017) was slightly below our estimates. The company reported 4% operating revenue growth and 1.4% operating income growth to JPY 261 billion for the second quarter, which is slightly slower than management’s unchanged full-year guidance. Our previous fiscal 2017 forecasts were slightly above management guidance, but following this result, we pulled them back to in line with the guidance. We retain our fair value estimate of J...
- Dan Baker
KDDI Produces Solid 2Q; FVE Retained at JPY 3,700
KDDI’s first-quarter fiscal 2017 result (quarter ended June 2017) was in line with our estimates and the company’s own full-year guidance. The company reported 6% operating revenue growth and 2.3% operating income growth to JPY 281 billion for the first quarter. This is consistent with our view that the Japanese telecom market is a solid three-player market with manageable competition levels, given that the smallest player, SoftBank, seems content to use its domestic telecom business as a ca...
- Dan Baker
KDDI Produces Solid Third Quarter; Fair Value Estimate Retained at JPY...
KDDI’s third-quarter fiscal 2016 result (quarter ended December 2016) was mildly ahead of our estimates, putting the firm on track to comfortably beat its own full-year guidance, which was upgraded at this result. The company reported 10.0% operating income growth to JPY 243 billion for the first quarter and 15.4% operating income growth for the first nine months, but is only guiding for 9.4% operating income growth to JPY 910 billion for the full year. We make only minor changes to our earnin...
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