Japan's KDDI Cuts Earnings Forecasts as Probe Reveals Fabricated Sales at Units
By Kosaku Narioka
Japanese mobile carrier KDDI lowered its fiscal-year earnings forecasts after an investigation found that its subsidiaries fabricated sales and costs.
KDDI now expects net profit for the fiscal year ending March to be 698.00 billion yen, equivalent to $4.37 billion, down from its previous forecast of Y748.00 billion.
The company also cut its revenue estimate to Y6.060 trillion from Y6.330 trillion.
KDDI said it received a report from a special investigation committee that identified inappropriate transactions, including the fictitious recording of sales and cost of sales, at units in its advertising agency business.
The company said it will cancel the sales and cost of sales tied to those transactions and record externally disbursed agency fees as losses.
The company also expects a decline in mobile device sales and a drop in energy sales. It will also book a Y50.0 billion impairment loss due to a change in sales strategy.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
March 31, 2026 04:29 ET (08:29 GMT)
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