Nov. 12 (Bloomberg) -- KDDI Corp. rose to the highest in more than 13 years in Tokyo trading after Japan’s second-largest wireless carrier held investor briefings on the outlook for earnings and revenue from users.
The stock jumped 5.1 percent to 5,970 yen, its highest closing price since May 2000. The company is briefing more than 100 institutional investors, including at meetings this week.
The company expects operating earnings to rise more than 10 percent next fiscal year and for average revenue per user, a key measure of customer spending, to increase this fiscal year after a period of decline, Satoshi Tsuruta, a spokesman for KDDI, said by phone. KDDI, which trades at a lower price-to-earnings multiple than SoftBank Corp., is tapping into demand for Apple Inc.’s iPhone to drive sales as consumers shift away from older handsets.
“KDDI’s performance is good and its share price is still comparatively cheap,” said Satoru Kikuchi, an analyst at SMBC Nikko Securities Inc. in Tokyo. “KDDI has explained good results to investors in Japan and overseas.”
KDDI added 158,900 net users in October, while SoftBank gained 229,400 and NTT Docomo Inc. added 37,100 subscribers during the month.
Docomo leads the Japanese wireless sector with a 44.5 percent market share. KDDI has about 28.2 percent.
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