Financial Data and Key Metrics Changes - Consolidated operating revenue for the first half of the fiscal year ending March 2025 was JPY2,855.7 billion, an increase of 2.8% year-on-year, achieving a progress ratio of 49.5% against the full-year forecast [5] - Operating income rose to JPY573.1 billion, up 2.3% year-on-year, with a progress ratio of 51.6% against the full-year forecast [5] - Communications ARPU revenues continued to increase, contributing to overall revenue growth [6] Business Line Data and Key Metrics Changes - The Personal Services segment saw total ARPU revenues grow, with au brand increasing by approximately 3% year-on-year and UQ Mobile by about 7% year-on-year [10] - The Business Services segment reported operating revenue of JPY672.4 billion, a 13.1% year-on-year increase, with operating income at JPY113.7 billion, up 11.1% year-on-year [27] Market Data and Key Metrics Changes - IoT-related services in the Business Services segment achieved operating revenue of JPY79 billion, up 21.5% year-on-year, with IoT connections growing to 46.33 million [28] - Data center operating revenue was JPY65 billion, reflecting a 12.1% year-on-year increase [28] Company Strategy and Development Direction - The company aims to achieve EPS targets by promoting satellite growth strategies and enhancing efficiency in technology costs [9] - KDDI is focusing on expanding major businesses and new areas such as DX, Drones, Lawson, and Starlink [9] - The collaboration with Lawson aims to enhance customer experience and drive sales through data and AI [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year forecasts, citing steady growth in major business areas and the successful implementation of new pricing plans [6][36] - The company is committed to strengthening its network and expanding its 5G capabilities to maintain competitive advantages [15][16] Other Important Information - KDDI has initiated a two-for-one stock split to attract new individual investors and announced an additional share repurchase of up to JPY100 billion [36][38] - The company is preparing for the launch of direct communications between satellites and smartphones using Starlink by the end of the year [17] Q&A Session Summary Question: What are the expectations regarding the NTT Law? - Management agrees with the direction of the draft report from the MIC Council, recognizing the need for updates to the NTT law in response to changing times [39] - The conclusion of discussions indicates no strong arguments for changing or abolishing the current legal system [39]
KDDI(KDDIY) - 2025 Q1 - Earnings Call Transcript