KDDI (9433) Q1 2027 earnings summary

Executive summary

• Revenue and profit increased year-on-year, with a strong start toward full-year targets and growth driven by mobile, financial, device-related, cybersecurity, AI integration, and data center services.

• Restoration efforts after the 2026 Kumamoto earthquake included rapid telecom service recovery using Starlink, mobile base stations, and community support initiatives.

• Governance was strengthened with recurrence-prevention measures and enhanced security following an unauthorized access incident.

• Initiatives focused on LTV, multi-brand strategies, and advancing the Power-to-Connect 2028 strategy are improving key KPIs and customer retention.

• Progress continues in new business creation and social implementation, including AI-powered productivity and enhanced lifestyles.

Financial highlights

• Operating revenue reached ¥1,487.3 billion, up 5.1% year-on-year, achieving 23.2% of the full-year plan.

• Adjusted operating income was ¥314.3 billion, up 21.1% year-on-year, at 26% of the annual target.

• Adjusted profit for the period was ¥193.4 billion, up 21.6% year-on-year, at 26.5% of the full-year plan.

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

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

Outlook and guidance

• On track to achieve the full-year earnings forecast of ¥1,210 billion in adjusted operating income.

• Growth areas are progressing toward double-digit growth for the full year, with acceleration expected in the second half.

• No changes have been made to previously released forecasts.