KDDI (9433) Q2 2025 earnings summary

Executive summary

• Revenue and operating income increased year-over-year, progressing in line with full-year forecasts, driven by mobile handset sales, finance, and growth in IoT, data centers, and digital BPO.

• Personal Services segment saw steady ARPU growth and successful multi-brand strategy execution, with notable migration from UQ to au and value-added ARPU revenues rising.

• Business Services segment delivered double-digit growth in both revenue and operating income, driven by DX, IoT, and growth areas.

• Collaboration with Lawson began, aiming to create social impact, expand value-added services, and transform convenience retail through AI and DX.

• Announced a two-for-one stock split and additional share repurchase of up to ¥100 billion, with total FY2025 repurchases up to ¥400 billion.

Financial highlights

• Consolidated operating revenue reached ¥2,855.7 billion, up 2.8% year-on-year; operating income was ¥573.1 billion, up 2.3% year-on-year.

• Business Services segment operating revenue was ¥672.4 billion, up 13.1% year-on-year; operating income was ¥113.7 billion, up 11.1% year-on-year.

• Free cash flow improved, with EBITDA at ¥395.0 billion and investments including Lawson acquisition.

• Total assets stood at ¥15.81 trillion as of September 2024.

• Dividend forecast for FY2025 is ¥145.00 per share, marking the 23rd consecutive year of increases.

Outlook and guidance

• Full-year forecast: operating revenue ¥5,770.0 billion, operating income ¥1,110.0 billion, profit attributable to owners of the parent ¥690.0 billion, EPS ¥340.01.

• EPS target for FY ending March 2026 remains a key objective, with a focus on satellite growth strategies and efficiency improvements.

• New pricing plans and value-added services, such as the 33GB UQ plan and Ponta Pass, are expected to drive net additions and ARPU in the second half.

• Business Services segment aims for double-digit growth for the full year.

• CapEx peaked last year and is expected to decline going forward.