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KDDI (9433) investor relations material
KDDI Q3 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Preliminary Q3 results for FY26-03 were presented, adjusted for inappropriate transactions at subsidiaries BIGLOBE and G-PLAN, with final numbers pending the Special Investigation Committee's report by end of March 2026.
Management apologized for the incident, emphasizing no effect on core communication services and a commitment to governance reforms.
Core business areas, especially mobile, finance, and DX, showed steady growth and operational progress year-over-year.
AI-driven initiatives, including the launch of the Osaka Sakai Data Center and the AI Digital Belt, are advancing as part of long-term growth strategy.
Significant events and developments
Fictitious transactions were discovered at BIGLOBE and G-PLAN, involving two employees, leading to overstated sales and profits over multiple years.
Approx. ¥246.0B in revenue and ¥50.0B in operating income identified for reversal over multiple years due to fictitious transactions.
The scheme involved recording fictitious sales and external outflows of commissions, with the total impact estimated at JPY 246 billion in revenue and JPY 33 billion in external outflows.
The business started in 2017 (G-PLAN) and 2022 (BIGLOBE), with the fictitious transactions likely from inception.
The company is considering legal action depending on the investigation's outcome.
Financial highlights
Q1-3 FY26-03 operating revenue: ¥4,471.8B (+3.8% YoY); operating income: ¥871.3B (+2.0% YoY); profit for the period: ¥554.0B (+5.3% YoY), all figures adjusted for fictitious transactions.
Segment contributions: Personal Services +JPY 27.2B, Finance/Energy/Lawson +JPY 18.2B, DX Business Services +JPY 8.5B, Technological Structure Reform +JPY 12.9B.
Negative impact from prior years' promotional expenses: -JPY 28.9B.
Q3 alone saw positive operating income growth as negative impacts subsided.
Reversal of fictitious revenue and income for FY26-03 Q1-3: approx. ¥68.0B and ¥25.0B, respectively.
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