Thailand is propelling its efforts to establish itself as a premier hub for digital infrastructure in Southeast Asia. This move follows the Board of Investment (BOI) granting approval for four new data center projects valued at THB 100 billion (USD 3.1 billion). The country is gearing up to more fiercely compete with Singapore and Malaysia, as the demand for artificial intelligence (AI) and cloud services is growing across the region.Details on New ProjectsThe BOI has confirmed that two of the approved proj ...

Group 1 - KDDI is holding its earnings release conference for the second quarter of the fiscal year ending March 2026, with the event being moderated by a representative from the Public Relations Department [1] - The earnings release will be distributed through multiple channels, including YouTube, and related documents have been uploaded to KDDI's website [1] - The conference features key executives, including President and CEO Hiromichi Matsuda, CFO Nanae Saishoji, CSO and CDO Tomohiko Katsuki, and Executive Director Kenji Aketa [2]

Industry Overview - The Zacks Wireless Non-US industry is facing challenges such as high capital expenditures for infrastructure upgrades, margin erosion, supply-chain disruptions, and geopolitical conflicts, but healthy demand trends in the digital age are expected to benefit the industry long-term [1][4]. Key Players - KDDI Corporation, Vodafone Group, and Millicom International Cellular are positioned to benefit from the rising demand for scalable infrastructure due to the proliferation of IoT and accelerated 5G deployment [2]. Industry Description - The industry includes mobile telecommunications and broadband service providers that offer voice services, value-added services like IoT, content streaming, and mobile payment solutions, as well as IT solutions and cable/satellite pay television subscriptions [3]. Current Challenges - Profit margins are being affected by high raw material prices, prolonged geopolitical tensions, and proposed tariffs, leading to a demand-supply imbalance and increased operational costs [4]. - The rise of over-the-top service providers is intensifying price-sensitive competition, which may limit customer retention and impact financial results [4]. Network Developments - There is a significant demand for network convergence, requiring traditional carriers to invest heavily in advanced networking architecture to meet the growing demand for coverage and quality [5]. - Continuous network upgrades are necessary to maintain performance standards, as telecom services are considered necessities and show weak correlation to macroeconomic factors [5]. Evolving Business Models - Increased spending on infrastructure upgrades is compromising short-term margins, leading companies to diversify from legacy services to business and enterprise opportunities [6]. - Companies are investing in software-defined networks and new Cloud Core architecture to enhance their service offerings [6]. Industry Performance - The Zacks Wireless Non-US industry currently holds a Zacks Industry Rank of 166, indicating it is in the bottom 33% of over 250 Zacks industries, suggesting bearish near-term prospects [7][8]. - Over the past year, the industry has gained 20.2%, outperforming the S&P 500's 16.1% but lagging behind the broader Zacks Computer and Technology sector's 21.9% [9]. Valuation Metrics - The industry has a trailing 12-month Price/Book ratio of 1.22X, significantly lower than the S&P 500's 8.37X and the sector's 9.92X [11]. Notable Companies - **KDDI Corporation**: Focuses on 5G communications and aims for growth in finance, energy, and healthcare, with a stock gain of 12.6% over the past year [14]. - **Vodafone Group**: Engages in telecommunications across Europe and has a long-term earnings growth expectation of 20.1%, with a stock gain of 20.4% [15]. - **Millicom International Cellular**: Provides a range of digital services in Latin America and has seen a stock gain of 74.7% in the past year [19].

Group 1 - The article focuses on the Asia Value & Moat Stocks research service, which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value [1] - The service emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The author provides a range of watch lists with monthly updates, specifically concentrating on investment opportunities in the Hong Kong market [1]

Group 1 - KDDI and NEC will collaborate in the field of cybersecurity [1]

Financial Data and Key Metrics Changes - The consolidated operating revenue for Q3 FY 2025 was ¥4,364.2 billion, representing a year-on-year increase of 2.3% with a progress ratio of 75.6% against the full year forecast [2][3][4] - The operating income reached ¥864.6 billion, up 2.0% year-on-year, with a progress ratio of 77.9% [2][4][5] - Net income showed a progress ratio of 77.8%, with a year-on-year increase of 0.6% when excluding temporary impacts from subsidiary reorganizations [5][6] Business Line Data and Key Metrics Changes - The communications ARPU revenues increased by ¥3.5 billion year-on-year, while value-added ARPU revenues rose by ¥27.9 billion year-on-year [7][11] - The financial and energy businesses combined contributed an increase of ¥12.6 billion, and Lawson's equity method accounted income was up ¥18.2 billion [6][19] - The Business Services segment reported a year-to-date operating revenue of ¥1,012 billion, driven by a 19.9% year-on-year growth in the growth area, particularly in IoT-related services [21][25] Market Data and Key Metrics Changes - The number of smartphone subscriptions has been steadily increasing, although the multi-brand churn rate has risen due to intensified competition [8][9] - The introduction of competitive pricing plans in UQ mobile and au has led to a recovery in monthly net additions since November [10][11] - The customer base for the financial business remains strong, with au PAY Card exceeding 10 million members and au Jibun Bank's mortgage loans surpassing ¥5 trillion [19] Company Strategy and Development Direction - The company aims to enhance the synergy between communications and financial services, focusing on increasing the ratio of unlimited plans and value-added services [12][13] - Collaborative initiatives with Lawson are progressing, with plans to start eSIM sales at all Lawson stores soon [14][15] - The company is committed to strengthening its AI and communication infrastructure, particularly through the WAKON-CROSS platform, to support digital transformation [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the rapid changes in the communications industry, emphasizing the transition from 5G to an AI-driven era [42][43] - The company is focused on maintaining high communication quality and expanding its service offerings to meet growing customer demands [17][91] - Future strategies will include leveraging AI to enhance customer experiences and operational efficiencies [54][98] Other Important Information - The company plans to exhibit at MWC Barcelona 2025, showcasing its initiatives in communications and AI [29][30] - The new President, Hiromichi Matsuda, will focus on sustainable growth and enhancing the company's ability to connect various services [50][103] Q&A Session Summary Question: What are Mr. Matsuda's strengths and weaknesses? - Mr. Matsuda described his strength as being tenacious in exploring win-win points with partners, while acknowledging the need to improve as a new member of the top management team [58][60] Question: What technology is Mr. Matsuda most interested in? - Mr. Matsuda expressed a strong passion for telecommunications and emphasized the importance of integrating AI with 5G technology [64][68] Question: How does Mr. Matsuda plan to build relationships with global partners? - Mr. Matsuda highlighted the importance of presenting KDDI's contributions and leveraging new technologies to enhance partnerships [114] Question: What is the company's plan for the consumer business? - Mr. Matsuda indicated that understanding consumer needs will be crucial in the next medium-term plan, with a focus on expanding the economic zone [139] Question: What achievements is Mr. Takahashi proud of during his presidency? - Mr. Takahashi noted the company's success in achieving number one in communication quality and building a foundation for integrating life design with communication [111][112]

Consolidated Financial Results - Operating revenue reached 4,364.2 billion yen, a year-on-year increase of 2.3%[6] - Operating income totaled 864.6 billion yen, up 2.0% year-on-year[6] - Profit for the period was 536.5 billion yen, a 0.6% increase year-on-year, excluding temporary impacts[6] - Progress against full-year forecasts for operating revenue, operating income, and profit for the period were 77.9%, 77.8%, and 75.6% respectively[6] Personal Services Segment - Total ARPU revenues increased to 1,488.2 billion yen, a rise of 27.9 billion yen[15] - Communications ARPU revenue increased steadily, with continued upward trend by brands[15] - Value-added ARPU revenue also increased steadily[15] - Multi-brand IDs saw positive monthly net additions after new pricing plans were introduced[22] - Total ARPU reached 5,210 yen in Q3, with communications ARPU at 3,970 yen and value-added ARPU at 1,380 yen[27] Business Services Segment - Consolidated operating revenue grew to 122.0 billion yen, a year-on-year increase of 20.8%[48] - IoT-related services operating revenue increased to 486.1 billion yen[48] - IoT Connections increased to 48.52 million, a year-on-year increase of 22.2%[48] Financial Business - au PAY Card membership exceeded 10 million[45] - au Jibun Bank exceeded 5 trillion yen in cumulative mortgage loan amount[45] Telecom x Convenience Store - povo Data Oasis led to approximately 20% QOQ increase in new acquisitions[36] - Average daily sales at Lawson stores increased by 3.4% year-on-year due to collaboration with KDDI[36]

SAN FRANCISCO and TOKYO, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Swift Navigation, a global leader in precise positioning technology, and KDDI Corporation, one of Japan's premier mobile network operators, announced the full commercial launch of Skylark® Precise Positioning Service in the Japanese market, which officially took place on October 8, 2024. Built on a carrier-grade network designed, deployed, and operated in partnership with KDDI, Skylark delivers unparalleled positioning accuracy to meet growing marke ...

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Financial Data and Key Metrics Changes - Consolidated operating revenue for the first half was JPY2,855.7 billion, up 2.8% year-on-year, achieving a progress ratio of 49.5% against the full year forecast [7] - Operating income was JPY573.1 billion, up 2.3% year-on-year, with a progress ratio of 51.6% against the full year forecast [7] - Communications ARPU revenues continued to increase, contributing to steady growth in major businesses [8] Business Line Data and Key Metrics Changes - The Business Services segment reported operating revenue of JPY672.4 billion, a 13.1% year-on-year increase, with operating income of JPY113.7 billion, up 11.1% year-on-year [13] - The DX Business Services segment experienced double-digit growth in operating income [7] - Financial and Energy businesses also saw an increase in income, contributing positively to overall performance [7] Market Data and Key Metrics Changes - The customer base in the value-added area expanded, with au Jibun Bank savings accounts increasing by 940,000 year-on-year and au PAY Gold Card members increasing by 410,000 year-on-year [12] - The number of au Denki subscriptions increased by 30,000 year-on-year, indicating growth in value-added services [12] Company Strategy and Development Direction - The company aims to achieve its EPS target by promoting a satellite growth strategy, focusing on major businesses and new areas such as drones and Starlink [9] - A capital policy was introduced, including a 2-for-1 stock split to attract new individual investors and an additional share repurchase of up to JPY100 billion [14] - The collaboration with Lawson is expected to enhance customer engagement and drive revenue growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive advantage of their network quality, particularly in the 5G space, and emphasized the importance of maintaining this lead [42][43] - The company anticipates that the introduction of new pricing plans and services will positively impact customer acquisition and ARPU in the second half of the fiscal year [21][25] Other Important Information - The company is committed to a total return ratio of 100% as an upper limit for shareholder returns, indicating a focus on maintaining stable dividends and share repurchases [33] - The company plans to enhance its brand strategy by differentiating its offerings among its three brands: povo, au, and UQ [29][30] Q&A Session Summary Question: Shareholder return strategy and future buybacks - The company clarified that the JPY100 billion share buyback is separate from cross-shareholding considerations and that they aim to maintain a balance between the two [18] Question: Impact of new plans on customer acquisition - Management indicated that the new Ponta Pass and UQ 30 giga plan are expected to positively impact customer acquisition and ARPU in the second half [20][21] Question: Competitive positioning and network quality - The company highlighted its strong network quality and competitive edge, particularly in the 5G space, and expressed confidence in sustaining this position [42][43] Question: Contribution from Lawson and future synergies - The company expects Lawson to contribute approximately JPY10 billion to operating income, with ongoing efforts to generate synergies between the two companies [47][49]