KDDI (9433) Q1 2025 earnings summary

Executive summary

• Operating revenue increased to JPY 1,389.1 billion, with operating income at JPY 277 billion, both progressing well toward full-year targets and up year-over-year.

• Profit attributable to owners was JPY 176.9 billion, flat year-over-year, with a progress rate of 25.6% toward the annual forecast.

• Communications ARPU revenues and smartphone subscriptions grew, offsetting price cut impacts and supporting ARPU growth across brands.

• Business Services segment and value-added areas showed strong growth, driven by DX, IoT, data centers, and BPO services.

• Generative AI initiatives, business transformation partnerships, and carbon neutrality goals are accelerating.

Financial highlights

• Operating revenue reached JPY 1,389.1 billion (+4.2% YoY), with 24.1% progress toward the full-year forecast.

• Operating income was JPY 277 billion (+3.9% YoY), achieving 25% of the annual plan.

• Profit for the period attributable to owners was JPY 176.9 billion, at 25.6% of the annual target.

• Business Services segment operating revenue rose 16.3% YoY to JPY 333.4 billion; operating income up 11.2% YoY.

• Basic EPS was JPY 84.98, up from JPY 82.02 year-over-year.

Outlook and guidance

• Q1 results are trending favorably in line with the plan, with no changes to the medium-term two-year cash flow plan or share buyback policy.

• FY2025 forecast: operating revenue JPY 5,770.0 billion (+0.3%), operating income JPY 1,110.0 billion (+15.4%), profit attributable to owners JPY 690.0 billion (+8.2%), basic EPS JPY 340.01.

• Business Services segment expected to achieve double-digit growth for the full year.

• Continued focus on expanding value-added services, AI-driven business transformation, and carbon neutrality.