KDDI Corp.’s profit declined in the first half despite rising revenue, as foreign exchange impacts and one-off factors masked underlying growth in its core mobile and enterprise businesses.
Net income attributable to owners fell 4.7% to ¥351.2 billion ($2.3 billion) in the six months ended September, the Tokyo-based company said Friday. Operating revenue rose 2.8% to ¥2.86 trillion, while operating profit increased 2.3% to ¥573.1 billion.
The carrier’s enterprise segment posted strong results, with revenue jumping 13.1% to ¥672.4 billion as corporate demand for data centers and digital services remained robust. The business services unit now accounts for nearly a quarter of total revenue.
In the consumer business, KDDI saw steady growth in mobile service revenue despite intense competition. The company added about 800,000 smartphone subscribers year-over-year to reach 32.58 million. Average revenue per user increased, helped by customer upgrades to higher-priced plans.
The company maintained its full-year forecasts for operating revenue of ¥5.77 trillion and operating profit of ¥1.11 trillion. It also announced a 2-for-1 stock split effective April 1, 2025, and an additional share buyback of up to ¥100 billion.
“Growth in our focus areas including digital transformation is continuing as planned,” said President Makoto Takahashi. The company highlighted its partnership with convenience store chain Lawson Inc., in which it acquired a 50% stake in August, as key to expanding its retail technology business.
