KDDI (9433) Q3 2025 earnings summary

Executive summary

• Consolidated results for the first nine months of FY ending March 2025 are progressing in line with full-year forecasts, with steady growth in personal and business services and strong performance from Lawson.

• Personal Services segment saw ARPU growth, supported by new multi-brand pricing plans and bundled financial services.

• Business Services segment growth was driven by IoT-related services and value-added offerings.

• Strategic focus on AI, network quality, and partnerships, including the Lawson collaboration, is supporting sustainable growth.

• The "New Satellite Growth Strategy" emphasizes generative AI, 5G, DX, finance, and energy, with deepened alliances.

Financial highlights

• Operating revenue for the nine months ended December 2024 reached ¥4,364.2 billion, up 2.3% year-on-year, achieving 75.6% of the full-year forecast.

• Operating income was ¥864.6 billion, up 2.0% year-on-year, with a 77.9% progress ratio.

• Profit attributable to owners of the parent was ¥536.5 billion, down 1.7% year-on-year due to temporary reorganization effects, but up 0.6% year-on-year excluding these impacts.

• Free cash flow for Q1-3 FY25-03 was ¥233.2 billion, impacted by investments including the acquisition of Lawson.

• Gross profit increased 2.6% year-on-year to ¥1,899.0 billion; SG&A expenses rose 3.4% to ¥1,064.9 billion.

Outlook and guidance

• Full-year forecasts remain unchanged, with consolidated results tracking as planned.

• For FY ending March 2025, forecasts are: operating revenue ¥5,770.0 billion (+0.3% YoY), operating income ¥1,110.0 billion (+15.4% YoY), and profit attributable to owners ¥690.0 billion (+8.2% YoY).

• Dividend forecast for FY2025 is ¥145.00 per share, up from ¥140.00 in FY2024.

• Continued focus on sustainable growth through business expansion, digital transformation, and AI integration.