KDDI (9433) Q1 2027 (Q&A) earnings summary

Executive summary

• Operating revenue rose 5.1% year-over-year to ¥1,487.3 billion, with adjusted operating income up 21.1% and adjusted profit up 21.6%, driven by growth in mobile, AI, cloud, and all business segments.

• Mobile communications and growth areas were primary profit drivers, with initiatives in LTV, multi-brand strategies, and AI integration improving KPIs and customer retention.

• Governance and security were strengthened following unauthorized access incidents, with enhanced standards and AI-based security measures.

• Segment structure was reorganized into Telecom Core, Personal Growth, and Business Growth, all showing revenue and income growth.

• Eleven divestments generated approximately ¥150 billion in cash for future growth investments.

Financial highlights

• Operating revenue progress rate against full-year forecast was 23.2%; adjusted operating income progress was 26%.

• Adjusted operating income increased 21.1% year-over-year to ¥314.3 billion; adjusted profit for the period grew 21.6% to ¥193.4 billion.

• All business segments reported revenue growth, with mobile communication revenues up 14.6% year-over-year.

• EBITDA margin for overseas connectivity data centers reached 44.1%.

• Basic earnings per share rose to ¥51.34 from ¥40.23 year-over-year.

Outlook and guidance

• Full-year operating income target remains ¥1,210 billion, with management confident in achieving this.

• Growth areas are expected to accelerate in the second half, with strategic cost investments planned.

• No changes to previously announced full-year forecasts despite Q1 outperformance.