KDDI (9433) Q2 2027 (Q&A) earnings summary

Executive summary

• H1 revenue rose 4.7% YoY to ¥3,052.8B; adjusted operating income increased 13.9% to ¥633.1B and adjusted profit rose 13.6% to ¥390.0B.

• Reported operating income increased 0.8% to ¥559.3B; impairments and a one-time Kakaku.com remeasurement gain affected reported results.

• Growth was led by Telecom Core and Business Growth, with contributions from mobile, devices, finance, cybersecurity, AI integration and data centers.

Financial highlights

• H1 revenue was ¥3,052,811m versus ¥2,916,005m YoY; adjusted operating income was ¥633,100m versus ¥555,700m.

• Adjusted profit attributable to owners was ¥390,049m, up 13.6%; reported profit attributable to owners was ¥363,274m, up 0.9%.

• Operating cash flow was ¥428,203m, investing cash outflow ¥336,103m and free cash flow ¥92,100m.

• Interim dividend was ¥42 per share, up 5% YoY; planned FY2027 dividend was ¥84 per share.

Outlook and guidance

• FY2027 guidance was unchanged: revenue ¥6,410B, adjusted operating income ¥1,210B and adjusted profit attributable to owners ¥731B.

• Management expects to achieve the FY operating income target, with Rakuten roaming revenue expected from H2 FY2027.

• H1 adjusted operating income and adjusted profit reached 52.3% and 53.4% of their respective full-year forecasts; mid-term target remains 5%+ organic growth.

• Finance profit decline is expected to continue through Q3 as loan-to-deposit balances normalize, then return to growth in Q4; energy profit is expected to rise in Q3 as timing differences unwind.