KDDI Corp. - ADR

**Financial Performance**: KDDI reported operating revenue of JPY 2,855.7 billion for the first half of FY March 2025, representing a 2.8% year-on-year (YoY) increase. Operating income was JPY 573.1 billion, up 2.3% YoY, indicating steady growth with good progress ratios of 49.5% and 51.6% against the full-year forecast, respectively. Both segments, communications and business services, are on track to meet full-year targets.

**ARPU Revenue Growth**: Communications Average Revenue Per User (ARPU) continues to enhance revenue, with contributions from multi-brand strategies. UQ Mobile and au brands saw ARPU growth of approximately 3% and 7% YoY, respectively. There was also a significant increase in smartphone subscriptions which has positively impacted overall ARPU revenues.

**Business Services Expansion**: The Business Services segment experienced significant growth, with operating revenue at JPY 672.4 billion, reflecting a 13.1% YoY increase. IoT and data center services were highlighted as key growth areas, suggesting a robust demand for such services. The company aims for JPY 200 billion in sales from IoT-related services by FY March 2026.