1996-010 May, 1996
KDD had released the Fiscal Year 1995 Financial Report.
During the first half of the term under review, the Japanese economy remained stagnant due to the effect of the strong yen, among other factors. The weakening of the yen since August, however, led the way to a recovery, albeit a gradual one.
In the field of international telecommunications, demand grew at a stead pace due to the continuing expansion of Asian economies and the gradual economic growth in much of Europe and the United States.
KDD continued its effort to reduce the rates for primary services and introduce many new services to further improve its overall competitiveness against the progress in deregulation worldwide and the severe price competition. At the same time, KDD has expanded end-to-end services by collaborating with overseas telecommunications carriers.
To meet the wide variety of needs including video and data transmission, KDD has advanced the construction of large-capacity, high-quality networks using optical submarine cables and communication satellites. At the same time, KDD has made an effort in the research and development in multimedia fields whose markets are anticipated to expand in the coming years.
KDD also strengthened its business base by revamping its organizational structure and making economical, but sound capital investments.
As a result of these activities, compared to the preceding term, KDD's operating revenues increased 0.2%, operating income increased 18.8%, and net income increased 6.6%.
KDD's forecasts for the next term are a 2.8% increase in operating revenues, a 2.4% increase in operating income, and a 15.4% increase in net income. The company expects to realize these forecasts by launching new services to adapt to the changes in the economic environment, further strengthening the sales function, and improving business efficiency.
Based on this policy, KDD paid 25 Yen per share as the interim dividend, and also plans to pay 25 Yen per share as the term-end dividend.
KDD plans to appropriate the retained earnings for this term to the improvement and reinforcement of networks to make them higher in quality, more reliable, and more resilient to disasters. KDD will also appropriate the money to the research and development of technologies for the multimedia age.
Overview of Business Performance During the first half of the term under review, the Japanese economy remained stagnant due to the effect of the strong yen, among other factors. The weakening of the yen since August, however, led the way to a recovery, albeit a gradual one.
Demand grew at a stead pace due to the continuing expansion of Asian economies and the gradual economic growth in much of Europe and the United States.
Against such a backdrop, for the eleven companies, including three new companies whose financial statements have been consolidated, the consolidated operating revenues declined 1.9% from the preceding consolidated fiscal year, but consolidated operating income rose 15.6% and net income increased 21.6%.