KDDI(US:KDDIY)2025-02-05 18:28Financial 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]