KDDI (9433) Q1 2026 (Q&A) earnings summary

Executive summary

• Consolidated revenue rose 3.4% year-over-year to JPY 1,436.3 billion, while operating income declined 1.6% and net profit attributable to owners dropped 3.3% to JPY 171.1 billion, in line with initial forecasts.

• New mobile plans and connected experience offerings saw strong uptake, improving brand migration and churn rates.

• Multi-brand and service plan redesigns, along with bundled offerings, improved customer retention and cross-segment growth.

• Financial business expanded through banking and securities alliances, with significant growth in bundled plan subscribers and operating income up 33% year-over-year to JPY 11.7 billion.

• The company is advancing its Satellite Growth Strategy, focusing on generative AI, 5G, DX, finance, and energy, supported by the opening of a new headquarters in July 2025.

Financial highlights

• Operating revenue: JPY 1,436.3 billion (+3.4% YoY); operating income: JPY 272.5 billion (-1.6% YoY); net profit: JPY 171.1 billion (-3.3% YoY).

• Mobile revenues (personal and business): JPY 550.6 billion (+JPY 7.6 billion YoY); mobile ARPU: JPY 4,340 (+JPY 60 YoY); smartphone subscriptions up by 450,000.

• Financial and energy businesses combined up JPY 6.2 billion; Lawson equity-method profit up JPY 5.7 billion; DX up JPY 2.9 billion.

• EBITDA and FCF improved, with FCF up JPY 425.3 billion year-over-year, driven by EBITDA growth and investment returns.

• Basic earnings per share increased to JPY 43.01 from JPY 42.49 year-over-year, reflecting a two-for-one stock split.

Outlook and guidance

• Fiscal year ending March 31, 2026 forecast: operating revenue JPY 6,330.0 billion (+7.0%), operating income JPY 1,178.0 billion (+5.3%), profit attributable to owners JPY 748.0 billion (+9.1%), EPS JPY 194.38.

• Full-year target: over JPY 30 billion profit increase in mobile (personal segment), with a need to increase profit by JPY 40 billion to achieve this.

• Service and price revisions from June and August expected to drive ARPU and profit growth in the second half.

• Business services segment aims for double-digit profit growth for the full year, with second-half performance expected to be stronger due to seasonality.

• No changes to previously announced forecasts.