KDDI (9433) Q3 2025 earnings summary

Executive summary

• Consolidated results for the nine months ended December 31, 2024, are progressing in line with full-year forecasts, with steady growth in major businesses, strong performance from Lawson, and expansion in mobile handset sales, finance, and IoT-related services.

• Personal Services segment saw steady increases in both communications and value-added ARPU revenues, supported by new multi-brand pricing plans and bundled financial services.

• Business Services segment growth was driven by expansion in IoT-related services, value-added offerings, and digital BPO.

• Leadership transition announced: Matsuda Hiromichi to become CEO and President as of April 1, 2025, succeeding Takahashi Makoto.

• Strategic focus on AI, network quality, digital transformation, and collaboration with partners, including joint management of Lawson and carbon neutrality initiatives.

Financial highlights

• Operating revenue for the nine months ended December 31, 2024, was ¥4,364,195 million, up 2.3% year-over-year, achieving 75.6% of the full-year forecast.

• Operating income reached ¥864,566 million, up 2.0% year-over-year, with a progress ratio of 77.9%.

• Profit attributable to owners of the parent was ¥536,531 million, up 0.6% year-over-year excluding temporary impacts, but down 1.7% including those effects.

• Free cash flow for the period was -¥298,422 million, reflecting increased investments and loans for financial business.

• Total assets as of December 2024: ¥16,284,389 million (consolidated), with equity ratio at 31.5%.

Outlook and guidance

• 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%).

• Progress toward full-year forecasts is strong, with operating revenue at 75.6% and operating income at 77.9% of annual targets.

• Communications and value-added ARPU revenues are expected to maintain an upward trend, supported by new plans and bundled offerings.

• No changes have been made to previously announced forecasts.

• The company aims to expand synergy between communications, financial services, and retail collaborations.