Carrier KDD Revises Down Revenue Estimates

TOKYO (04/25/2000) - KDD Corp., one of Japan's largest telecommunications carriers, this morning said it expects revenue in the year ended March 2000 to come in lower than expected, although one-time gains will push its profit higher than previously estimated.

The company, which is expected to formally announce its full-year financial results in May, said in a statement that group net revenue is expected to be 595.0 billion yen (US$5.6 billion), 21.0 billion yen lower than previously forecast. The company's pretax profit forecast was revised to 23.5 billion yen, up 12.5 billion yen, and its net profit forecast was increased from 7.0 billion yen from 1.0 billion yen.

The increased net profit forecast is largely the result of the company's sale of a slice of its undersea fiber-optic cable-laying unit, KDD Submarine Cable Systems Inc., which netted the carrier approximately 5.0 billion yen. The increased pretax profit is also the result of extraordinary gains, KDD said.

At the parent company level, KDD painted a similar picture, with revenue revised down 11.0 billion yen to 395.0 billion yen. Pretax profits are now expected to be 25.2 billion yen, up 13.2 billion yen on KDD's previous estimate, and net profits are predicted to be 3.9 billion yen, a 1.4 billion yen revision upwards.

KDD, in Tokyo, can be found online at http://www.kdd.co.jp/.

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