KDDI (9433) Q2 2025 earnings summary

Executive summary

• Revenue and operating income increased year-over-year, with operating revenue for H1 FY25-03 at ¥2,855.7 billion (up 2.8%) and operating income at ¥573.1 billion (up 2.3%), aligning with full-year forecasts.

• Growth was driven by higher communications ARPU, double-digit gains in Business Services, and expansion in financial and energy businesses, despite declines in energy and roaming revenues.

• Strategic focus includes expanding the customer base, value-added services, multi-brand strategy, and new business initiatives such as AI, DX, and collaborations with Lawson.

• Profit attributable to owners of the parent declined 4.7% year-over-year to ¥351,202 million, impacted by foreign exchange losses and organizational changes.

• Two-for-one stock split and share repurchase program (up to ¥100 billion) announced to enhance shareholder returns and broaden investor base.

Financial highlights

• Operating revenue reached ¥2,855.7 billion, up 2.8% year-over-year, with a 49.5% progress ratio against the full-year forecast.

• Operating income was ¥573.1 billion, up 2.3% year-over-year, achieving 51.6% of the full-year forecast.

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

• IoT-related services revenue rose 21.5% year-over-year to ¥79 billion; data center revenue up 12.1% to ¥65 billion.

• Gross profit increased 3.4% year-over-year to ¥1,263,522 million.

Outlook and guidance

• On track to meet full-year forecasts for all major business segments, with FY2025 forecasted operating revenue of ¥5,770,000 million (+0.3%) and operating income of ¥1,110,000 million (+15.4%).

• Mid-term growth strategy targets EPS growth by March 2026, focusing on satellite growth, new business areas, and profit realization from ventures such as drones and Starlink.

• Continued investment in AI, DX, and network quality to drive future growth.

• Dividend forecast for FY2025 is ¥145.00 per share, marking the 23rd consecutive annual increase.