Summary of Earnings Results Briefing
for Q2 FY2022
|Date||Friday, November 4, 2022 4:00 pm - 5:00 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 the consolidated results for Q2 FY2022.
for Q2 FY2022
- Revenue for Q1-Q2 FY2022 was ¥2,808.6 billion, up 3% year on year. Revenue increased in all segments.
- Operating income was ¥498.6 billion, down 13% year on year.
- Net income attributable to owners of SoftBank Corp. was ¥237.1 billion, down 23% year on year. The result was affected by the decline in operating income and deterioration in financing income and cost.
of Full-year Forecasts
- The re-measurement gain associated with making PayPay Corporation a consolidated subsidiary*1 was confirmed. SoftBank Corp. expects to recognize re-measurement gain of ¥294.8 billion in Q3 FY2022.
- Accordingly, SoftBank Corp. has revised upward its full-year forecasts for FY2022, which were announced in May 2022. The revised forecast for operating income is ¥1,050.0 billion yen and net income is ¥540.0 billion yen.
Results by Segment
① Consumer segment
- Revenue increased by 1% year on year, and segment income decreased by 13% year on year. Results were affected by factors such as the impact of mobile service price reduction in spring 2021. The impact of mobile service price reduction on reducing segment income has started to narrow down from Q1 FY2022 onward. It is expected to hit bottom in FY2022 and become much smaller in the next fiscal year and beyond.
- The progress rate for Q1-Q2 for operating income on the full-year forecast was 66%. While progress has been stronger than initially expected, the full-year operating income forecast for the Consumer segment has been maintained at ¥480.0 billion in order to carefully assess the possibility of future cost increases.
- Cumulative smartphone subscribers increased by 7% from the end of the same period in the previous fiscal year. Also, net additions of smartphone and main subscribers improved substantially year on year.
② Enterprise segment
- Revenue increased by 3% year on year, while segment income decreased by 4% year on year. Excluding the effect of one-time factors in Q1 FY2021 and Q2 FY2022, segment income increased by 4%.
- Recurring revenue, which makes up more than 70% of business solution and others revenue, increased by 11% year on year. It has contributed to steady growth in results.
③ Yahoo! JAPAN/LINE segment
- Revenue increased by 5% year on year, while segment income decreased by 14% year on year. Results were affected by increased expenses associated with strengthening recruitment for growth and sales promotion etc.
- Domestic EC merchandise transaction value increased by 6% year on year.
④ Financial segment
- The Financial segment will be newly established in Q3 FY2022. The new segment will mainly be structured around SoftBank Corp.'s portfolio companies with its direct ownership (PayPay Corporation, PayPay Card Corporation, SB Payment Service Corp., PayPay Securities Corporation).
- PayPay Corporation
- The number of registered users exceeded 51.21 million at the end of September 2022.
- In Q1-Q2 FY2022, the number of payments was 2.38 billion, and gross merchandise value (GMV) was ¥3.5 trillion.
- In Q1-Q2 FY2022, revenue on a standalone basis was ¥53.2 billion. EBITDA*2 on a standalone basis was a loss of ¥10.0 billion, but the loss has steadily contracted.
- SB Payment Service Corp.
- A leading payment processing service provider in Japan, providing a wide range of payment methods on a one-stop basis.
- Continued double-digit growth in gross merchandise value (GMV) from FY2012 to FY2021. Growth has been driven by non-telecommunication payments (payments other than SoftBank Corp.'s telecommunication charges, etc.)
- Double-digit growth was also achieved in revenue and operating income. In FY2021, operating income was ¥ 9.4 billion.
- PayPay Securities Corporation
- Provides asset management services linked to PayPay app.
- Efficiently expand user base by leveraging PayPay's customer base. In October 2022, the cumulative number of PayPay point investment users surpassed 7 million at the fastest pace in the industry.*3
- PayPay Corporation
- Through collaboration between Financial segment and mobile, enterprise and commerce businesses, SoftBank Corp. will create group synergies, with the aim of driving the growth of the Financial segment and the Group as a whole.
- *1PayPay Corporation was converted into a subsidiary through an intermediate holding company (B Holdings Corporation), which was jointly established by SoftBank Corp. and Z Holdings Corporation.
- *2Calculated by adding depreciation to operating income. Figure is unaudited.
- *3Compared with other simulated investment point investment service providers (au PAY point operation, Credit Saison Eikyufumetsu point operation service, d POINT Investment and Rakuten Point Investment, in alphabetical order; as of October 2022, research by PPSC Investment Service).