|Date||Thursday, February 3, 2022 4:00 pm - 5:15 pm|
Junichi Miyakawa (President & CEO)
Kazuhiko Fujihara (Board Director, Executive Vice President & CFO)
At the earnings results briefing, Mr. Junichi Miyakawa, President & CEO of SoftBank Corp., discussed consolidated results for Q3 FY2021.
Consolidated Results for Q3 FY2021
- Revenue for Q1-Q3 FY2021 was ¥4,173.8 billion, up 10% year on year.
- Operating income was ¥821.2 billion, down 2% year on year. Consumer segment income decreased by 10% due to the impact of mobile service price reduction, while there were steady increases in income in the Enterprise segment and Yahoo! JAPAN/LINE segment.
- Net income attributable to owners of SoftBank Corp. was ¥420.8 billion, down 3% year on year. Within the decrease in net income of ¥12.9 billion, ¥4.1 billion was due to the impact of an impairment loss recorded by Z Holdings Corporation, which is a subsidiary of SoftBank Corp., in Q3. The impairment loss was recorded in light of the stock price decline for Demae-can Co., Ltd. stock held by Z Holdings Corporation.
- The progress rates for Q1-Q3 on the full-year earnings forecasts were in line with expectations, with revenue at 76%, operating income 84%, and net income attributable to owners of SoftBank Corp. 84%. Record-high profits are expected on a full-year basis, as initially planned.
Results by Segment
1. Consumer segment
- Revenue increased by 3% year on year, and segment income decreased by 10%.
- Profits were impacted by factors such as a decrease due to mobile service price reduction, despite an increase in revenue due to a recovery in mobile device sales.
- Cumulative smartphone subscribers increased by 6% from the end of the same period last fiscal year. Quarterly net additions of subscribers are recovering steadily.
- Steady progress was made on capturing synergies between mobile business and various group services. This progress contributed to growth in the services of PayPay Corporation, Z Holdings Corporation, and LINE Corporation, while efforts to promote the use of various group services helped to reduce the churn rate for SoftBank Corp.'s mobile service subscribers.
2. Enterprise segment
- Revenue increased by 4% and segment income increased by 13% year on year.
- Business solution and others revenue increased by 12% year on year, indicating continued steady growth.
- Recurring revenue, which accounts for more than 70% of Business solution and others revenue, increased by 22% year on year. Notably, digital marketing business and security business performed strongly.
3. Yahoo! JAPAN/LINE segment
- Revenue increased by 33% and segment income increased by 24% year on year.
- Media business performed strongly, in addition to increased revenue due to the business integration of Z Holdings Corporation and LINE Corporation in March 2021.
- EC merchandise transaction value increased by 12% year on year.
- Cumulative registered users exceeded 45 million. The number of payments for Q1-Q3 was 2.63 billion.
- Gross merchandise value (GMV) for Q1-Q3 was ¥3.9 trillion, up 73% year on year.
- From October 2021, PayPay started to charge small and medium-sized merchants payment system fees. Thereafter, business continued to expand steadily, with GMV in Q3 reaching a new all-time quarterly high.
- Revenue increased substantially due to the charging of the payment system fees. PayPay Corporation posted revenue of ¥20.7 billion on a standalone basis in Q3, 2.7 times year on year and 1.6 times in comparison to the preceding quarter (July-September 2021), marking rapid growth.
- In February 2022, PayPay started to provide PayPay Atobarai (deferred payment), which is a service enables users to pay the amount used in the current month in a lump sum in the following month. Efforts will be made to stimulate greater use of PayPay by increasing the number of payments and raising the payment amount per user.
- In January 2022, SoftBank Corp. issued its first ESG Bond (Sustainability Bond) on a standalone basis. Proceeds of ¥30 billion will be raised from the bond. The funds are scheduled to be used for research and development and operation of the High Altitude Platform Station (HAPS), a stratospheric communication platform that will contribute to the realization of a sustainable society.
- SoftBank Corp. has received highly positive evaluations from external organizations for its ESG activities. In November 2021, SoftBank Corp. received Social Value Award at Nikkei SDGs Management Awards based on the results of the Nikkei SDGs Management Survey. Additionally, SoftBank Corp. has been selected as a component of many global ESG investment indices, such as MSCI, Dow Jones and FTSE