Summary of Earnings Results Briefing
for Q3 FY2022
|Date||Friday, February 3, 2023 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 Q3 FY2022.
for Q3 FY2022
- Revenue for Q1-Q3 FY2022 was ¥4,345.5 billion, up 4% year on year.
- Operating income was ¥982.0 billion, up 22% year on year. In Q3 FY2022, a re-measurement gain of ¥294.8 billion associated with making PayPay Corporation a consolidated subsidiary*1 was recognized.
- Net income attributable to owners of SoftBank Corp. was ¥508.6 billion, up 21% year on year.
- The progress rates for Q1-Q3 on the full-year earnings forecasts were in line with expectations, with revenue at 74%, operating income 94%, and net income attributable to owners of SoftBank Corp. 94%.
Results by Segment
① Consumer segment
- Revenue increased by 1% year on year, and segment income decreased by 17% 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-Q3 for operating income on the full-year earnings forecast was 90%, indicating steady progress.
- 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 for Q1-Q3 improved substantially year on year.
- We launched “PayPay Card Gold” in Q3 FY2022 and will make effort to accelerate the acquisition of “PayPay Card” users by leveraging the sales channels of the Consumer segment. We will also work on generating synergies to increase the acquisition of new mobile subscribers, reduce churn, expand e-commerce user base and transaction volume, and grow gross merchandise volume (GMV) in the Financial segment along with other effects.
② Enterprise segment
- Revenue increased by 4% year on year and segment income increased by 3% year on year. Excluding the effect of one-time factors in Q1 FY2021 and Q2 FY2022, segment income increased by 9%.
- Business solution and others revenue increased by 13% year on year, indicating continued steady growth.
- 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 Financial segment
(newly established in Q3 FY2022)
- Revenue increased by 77% year on year. Segment income decreased due to the effects of factors such as making PayPay Corporation a consolidated subsidiary*1 and strategic investments in PayPay Card Corporation to expand its customer base. However, as these were upfront investments for future growth, progress was made in line with expectations.
- PayPay Corporation
- The number of registered users was 54.00 million at the end of December 2022.
- In Q1-Q3 FY2022, the number of payments was 3.75 billion, and gross merchandise value (GMV) was ¥5.7 trillion.
- In Q1-Q3 FY2022, revenue on a standalone basis was ¥89.8 billion. EBITDA*2 on a standalone basis was a loss of ¥13.8 billion, but the loss improved by ¥30.7 billion year on year.
- SB Payment Service Corp.
- In Q1-Q3 FY2022, gross merchandise value (GMV) was ¥4.8 trillion, an increase of 26% year on year. Notably, growth has been driven by the non-telecommunication area, which includes transactions outside our Group that increased by 40% year on year.
- PayPay Securities Corporation
- The cumulative number of PayPay point investment users surpassed 8 million.
- PayPay Corporation
④ Yahoo! JAPAN/LINE segment
- Revenue increased by 4% year on year, while segment income decreased by 17% year on year. Results were mainly affected by increased expenses associated with strengthening recruitment for growth.
- We explained the changes in the management structure of Z Holdings Corporation to enable expeditious management decision-making and accelerate synergy generation from business integration.
- *1PayPay Corporation was converted into a subsidiary through an intermediary 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.