KDDI (9433) Q3 2025 earnings summary

Executive summary

• Consolidated results for the first nine months are progressing in line with full-year forecasts, with steady growth in major businesses and strong performance from Lawson.

• Personal Services segment saw 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 and value-added offerings.

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

• Strategic focus on AI, network quality, digitalization, and collaboration with partners to enhance connectivity and value.

Financial highlights

• Operating revenue for the nine months ended December 31, 2024, reached ¥4,364.2 billion, up 2.3% year-on-year, with a progress ratio of 75.6% toward the full-year forecast.

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

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

• Business Services segment operating revenue reached ¥1,012 billion year-to-date, up 20.8% year-on-year, driven by IoT and digital BPO growth.

• Free cash flow for the period was -¥298.4 billion, reflecting increased investments and loans for financial business.

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%).

• Communications ARPU revenue is forecasted to increase in the fourth quarter, supported by new plans in UQ mobile and au.

• Continued focus on sustainable growth, leveraging synergies between communications, financial services, and retail collaborations.

• No changes have been made to previously announced forecasts.