Japanese mobile network operator, KDDI Corp has reported a 25% drop in its fiscal second quarter results. The quarterly net profit was Y58.87 billion (US$640 million), down from Y78.66 billion in the same period a year ago. Revenues dropped by 0.9% to Y869.36 billion (US$9.45 billion).

The company ended September with 31.23 million subscribers, however, intensifying marketing efforts lead to a 21% drop in operating profit to Y109.16 billion (US$1.2 billion). The company estimated that its market share was 28.5% at the end of the quarter.

The ARPU rate dropped by 5.7% to Y5,600, largely due to discounts offered to subscribers.

The company added that in response to major changes in the revenue structure, it will work to enhance its business base by conducting a fundamental review of the cost structure on a Group-wide basis, and will implement initiatives directed toward the further development of the Group.

The company also confirmed that it will introduce WiMAX/CDMA hybrid devices within the next six months to boost its mobile data services.

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