KDDI (9433) Q2 2025 earnings summary

Executive summary

• Operating revenue for the first half reached ¥2,855.7 billion, up 2.8% year-over-year, with operating income at ¥573.1 billion, up 2.3% year-over-year, both progressing well toward full-year forecasts.

• Growth was driven by higher communications ARPU, double-digit increases in Business Services, and expansion in finance, IoT, and energy businesses.

• 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.

• Strategic focus includes expanding ARPU, value-added services, leveraging multi-brand and high-quality network strengths, and advancing the New Satellite Growth Strategy in AI, DX, and new business fields.

• 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: ¥2,855.7 billion (+2.8% YoY), progress ratio 49.5% of full-year forecast.

• Operating income: ¥573.1 billion (+2.3% YoY), progress ratio 51.6% of full-year forecast.

• Business Services segment operating revenue: ¥672.4 billion (+13.1% YoY); operating income: ¥113.7 billion (+11.1% YoY).

• IoT-related services revenue: ¥79 billion (+21.5% YoY); data center revenue: ¥65 billion (+12.1% YoY).

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

Outlook and guidance

• On track to meet full-year forecasts for revenue and income.

• Full-year forecast for FY2025: operating revenue of ¥5,770,000 million (+0.3%), operating income of ¥1,110,000 million (+15.4%), and profit attributable to owners of the parent of ¥690,000 million (+8.2%).

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

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

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