KDDI cuts pretax profit outlook

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KDDI Corp said Friday that it has lowered its group profit estimates for fiscal 2007 due to larger-than-expected marketing costs. Net profit for the year that ended on March 31 is now estimated at 216 billion yen, down from the previously estimated 220 billion yen. The operating profit estimate was lowered to 400 billion yen from 414 billion yen.

Sales promotion and other business costs grew as the number of subscribers to the company’s au brand mobile phone services stood at 30.1 million at the end of March, exceeding the estimated level of 30 million, KDDI said. KDDI raised its group revenue projection for the year to 3,596 billion yen from 3.58 trillion yen thanks to the increase in subscribers.