Japan · Delayed Price · Currency is JPY KDDI Corporation Earnings Call Transcripts
Fiscal Year 2026
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A multi-year investigation revealed extensive fictitious transactions in the advertising agency business, leading to significant financial restatements and the discontinuation of the business. Governance failures and lack of expertise were root causes, prompting comprehensive reforms, legal actions, and strengthened group oversight.
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Preliminary Q3 results reflect strong core business growth despite a major fictitious transaction scandal at subsidiaries, with JPY 246B in revenue and JPY 33B in external outflows impacted. The investigation continues, but no dividend forecast revision is planned.
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Revenue, operating income, and net profit all grew year-on-year and quarter-on-quarter, driven by mobile business reforms, higher ARPU, and lower churn. Management is confident in meeting full-year profit and EPS targets, with continued investment in AI, data centers, and shareholder returns.
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First half results showed strong revenue and profit growth, with mobile ARPU and churn rates improving due to structural reforms. Full-year profit is projected to rise over JPY 30 billion, supported by robust mobile, IoT, and new service initiatives.
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Revenue grew 3.4% year-on-year, but profit declined due to one-off promotional expenses, with new mobile plans and financial services driving future growth. Service and price revisions are expected to boost ARPU and profit in the second half.
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Q1 revenue grew 3.4% year-on-year, but profit declined due to one-time factors, with results in line with forecasts. New mobile plans and financial services alliances are driving growth, and business services and AI initiatives are set to accelerate in the second half.
Fiscal Year 2025
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Revenue and profit grew steadily in FY March 2025, driven by telecom, finance, and DX segments. FY March 2026 targets further growth, with strong shareholder returns, expansion in digital infrastructure, and continued innovation in AI and 5G.
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Third quarter results are on track with full-year forecasts, driven by new pricing plans, ARPU growth, and strong Lawson collaboration. Business services and IoT are expanding, while AI investments and digitalization are shaping future strategy.
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Revenue and operating income rose in the first half of FY2025, with strong ARPU and business services growth. New pricing plans and value-added services are set to drive further gains, while capital returns and network leadership remain strategic priorities.
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Q1 saw strong revenue and income growth, with business services and ARPU trending upward. Investments in AI data centers and digital BPO integration are driving future growth, while share buyback policy and EPS targets remain on track.