Kddi Corp. ( (KDDIY) ) has released its Q2 earnings. Here is a breakdown of the information Kddi Corp. presented to its investors.
KDDI Corporation is a leading telecommunications company based in Japan, offering a wide range of services including mobile, fixed-line, and internet services. The company is known for its innovative approach in integrating communication technologies with everyday life, driving growth through digital transformation, finance, and energy sectors.
For the six-month period ended September 30, 2024, KDDI reported a modest increase in operating revenue by 2.8% to ¥2.86 trillion, driven by gains in mobile handset sales and the finance business. However, the company faced a decline in profits, with profit attributable to owners of the parent decreasing by 4.7% to ¥351.2 billion. This downturn was attributed to foreign exchange losses and a decrease in revenue from the energy sector.
The company’s business segments showed varied performance, with the Personal Services segment experiencing a slight dip in revenue due to changes in accounting practices and decreased roaming revenue, while the Business Services segment saw a significant revenue increase of 13.1%, thanks to growth in IoT-related services and data centers. KDDI continues to enhance its 5G infrastructure and expand its services in Asia, contributing to its strategic vision of creating societal value through connected technologies.
Despite current challenges, KDDI remains committed to its long-term strategies, including the New Satellite Growth Strategy which focuses on leveraging generative AI and expanding into new business areas such as mobility and healthcare. The company also continues its efforts in achieving carbon neutrality and enhancing corporate value through sustainable practices.
Looking ahead, KDDI’s management maintains a cautiously optimistic outlook, forecasting a slight increase in operating revenue and profits for the full fiscal year ending March 31, 2025. The company plans to continue its focus on innovation, customer engagement, and strategic partnerships to drive future growth.
