KDDI Overstates Sales by Up to 246 B. Yen

Tokyo, Feb. 6 (Jiji Press)--Japanese telecommunications company KDDI Corp. said Friday that it has overstated sales by up to 246 billion yen for the year ending in March due to fictitious transactions involving its internet service subsidiary Biglobe Inc.

As a special investigation committee is looking into the matter, KDDI postponed the release of its earnings results for April-December 2025, originally scheduled for the same day.

The company also said that it had lost track of funds totaling about 33 billion yen, paid as commission fees since the fiscal year ending March 2018, due to such fictitious transactions.

At a press conference in Tokyo on Friday, KDDI President and CEO Hiromichi Matsuda said, "As top management, I am keenly aware of my responsibility for failing to prevent this from happening."

Biglobe and its subsidiary recorded sales from advertising for which they did not actually receive orders, KDDI officials said.

[Copyright The Jiji Press, Ltd.]