KDDI (9433) Q1 2026 (Q&A) earnings summary

Executive summary

• Consolidated revenue rose 3.4% year-over-year to ¥1,436.3 billion, while operating income fell 1.6% and net profit attributable to owners dropped 3.3%, in line with initial forecasts.

• New mobile plans and connected experience offerings saw strong uptake, improving brand migration and churn rates.

• Multi-brand strategy, bundled offerings, and service revisions improved customer retention and cross-segment growth.

• Financial business expanded through banking and securities alliances, with significant growth in bundled plan subscribers.

• The company is advancing its Satellite Growth Strategy, focusing on generative AI, 5G, DX, finance, and energy.

Financial highlights

• Operating revenue: ¥1,436.3 billion (+3.4% YoY); operating income: ¥272.5 billion (-1.6% YoY); net profit: ¥171.1 billion (-3.3% YoY).

• Mobile revenues (Personal & Business): ¥550.6 billion (+¥7.6 billion YoY); mobile ARPU: ¥4,340 (+¥60 YoY); smartphone subscriptions up by 450,000 YoY.

• Financial business operating income up 33% YoY to ¥11.7 billion; transaction volume up 13.6%.

• EBITDA and FCF improved, with FCF up ¥425.3 billion YoY, driven by EBITDA growth and investment returns.

• Basic earnings per share increased to ¥43.01 from ¥42.49 YoY, reflecting a two-for-one stock split.

Outlook and guidance

• Full-year revenue forecast set at ¥6,330.0 billion, with operating income target of ¥1,178.0 billion.

• Profit growth of over ¥30 billion targeted in the mobile personal segment.

• Expect significant growth in the second half, driven by service revisions, new plans, and business services.

• Fiscal year ending March 31, 2026 forecast: profit attributable to owners of the parent ¥748,000 million (+9.1%), EPS ¥194.38.

• No changes to previously announced forecasts.