Result and Forecast

Performance by Business segment

We announced our new medium-term management plan May, 2019 and outlined new business strategies to realize our plan.
From the fiscal year ending March 2020, we changed business segments in line with business strategies.
We reorganized and integrated into "Personal Services" providing services for individuals customers and "Business services" providing services for corporate customers.

Jump to the applicable sectionNew segment performance forecast

Personal Services

Performance of FY2019.3
Operating revenue increased by 0.3% year on year, due to factors such as increased energy revenues through business such as au Denki, as well as increased revenues at subsidiaries. These increased revenues compensated for the decrease in revenues arising from the unbundled plans (au Pitatto Plan and au Flat Plan) and the reduction in handset sales.
Operating income increased by 3.2% year on year, due to the increase in group MVNO revenues and the decrease in retirement of fixed assets, despite the decrease in mobile communications revenues [1] resulting from the new price plans (au Pitatto Plan and au Flat Plan) and the increased costs of handset sales.

  • [1]
    au ARPA revenues + MVNO revenues

Life Deign Services

Performance of FY2019.3
Operating revenue increased by 11% year on year, driven by the growth of value-added ARPA revenues in connection with the increase in the au Smart Pass Premium subscription rate, as well as the growth in au Economic Zone Gross Merchandise Value, such as in the payment and e-commerce services.
Operating income increased by 8.4% year on year, also due to the increase in value-added ARPA revenues.

Business Services

Performance of FY2019.3
Despite the continuing decrease of revenues from mobile and legacy fixed-line voice services, the operating revenue increased by 6.3% year on year, due to growth in the revenues of data communications, the data center business in Japan, the consolidated subsidiary KDDI MATOMETE OFFICE CORPORATION, and retail electric power sales.
Operating income increased by 23.1% year on year as a result of controlling the sales costs and sales management costs.

Global Services

Performance of FY2019.3
Operating revenue decreased by 16.0% year on year, due to the effects of restructuring lower profitability business, even though there was steady growth in the Myanmar telecommunications business, the data center business, and the system integration business.
Operating income increased by 7.7% year on year, due to the steady progress in the Myanmar telecommunications business, the data center business, and the system integration business, despite the negative impact of the currency exchange rate.

New segment performance forecast

Personal Services

Operating revenue is forecast to increase by 2.9% year on year, due to the upturn in au ARPA revenues in the previous fourth quarter, the increase in MVNO revenues, and the establishment of new consolidated subsidiaries in the life design domain.
Operating income is forecast to increase by 0.1% year on year, due to the increase in total ARPA revenues and the steady growth of the life design domain, which compensates for the effects of new providers entering the telecommunications business, as well as the depreciation costs arising from the termination of 3G network services (at the end of March 2022).

Business Services

Operating revenue is forecast to increase by 2.7% year on year, due to the stable growth of fixed-line communications revenue, and the continuing revenue growth at consolidated subsidiaries such as KDDI MATOMETE OFFICE CORPORATION.
Operating income is forecast to increase by 8.2% year on year as a result of securing increased profits in Japan and abroad through the steady revenue growth of existing fixed-line communications services, as well as due to the significant increase in the number of contracts for IoT, which is a growth area.

For more detailed financial information, please refer to the "Financial results presentation".
Presentations

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