KDDI (9433) Q1 2025 earnings summary

Executive summary

• Consolidated revenue and income increased year-over-year in Q1 FY ending March 2025, with progress rates of 24–26% toward full-year forecasts, driven by mobile handset sales, finance, IoT, data centers, and digital BPO.

• Communications ARPU revenues exceeded prior year levels, with value-added services and DX initiatives driving growth.

• Business services segment operating income rose 11.2% year-over-year, with operating revenue up 16.3%, led by IoT, data centers, and Digital BPO.

• No.1 in Sub6 5G base stations, enhancing connectivity quality and customer experience.

• Generative AI initiatives and business transformation accelerated through strategic partnerships and the launch of new platforms.

Financial highlights

• Operating revenue: ¥1,389.1 billion (24.1% of full-year forecast), up 4.2% year-over-year.

• Operating income: ¥277 billion (25% of full-year forecast), up 3.9% year-over-year.

• Profit attributable to owners: ¥176.9 billion (25.6% of full-year forecast), flat year-over-year.

• Business services segment operating revenue: ¥333.4 billion, up 16.3% year-over-year.

• Basic earnings per share rose to ¥84.98 from ¥82.02 a year earlier.

Outlook and guidance

• Revenue and income are on track with full-year forecasts; no changes to previously announced guidance.

• Full-year forecast for FY2025: operating revenue ¥5,770,000 million (+0.3%), operating income ¥1,110,000 million (+15.4%), profit attributable to owners ¥690,000 million (+8.2%), and basic EPS ¥340.01.

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

• Continued focus on expanding 5G, Generative AI, and value-added services for sustainable growth.