Summary of Earnings
Results Briefing
for Q1 FY2024

< Back

Date Tuesday, August 6, 2024 4:00 pm - 5:10 pm
Speakers SoftBank Corp.
Junichi Miyakawa (President & CEO)
Kazuhiko Fujihara (Board Director, Executive Vice President & CFO)

Summary

At the earnings results briefing, Mr. Junichi Miyakawa, President & CEO of SoftBank Corp., discussed the consolidated results for Q1 FY2024.

Consolidated Results
for Q1 FY2024

Company-wide Results

  • Revenue for Q1 FY2024 was ¥1,535.7 billion, up 7% year on year. Revenue increased in all segments. Record high revenue for Q1 on a standalone basis.
  • Operating income was ¥303.9 billion, up 23% year on year. Profit increased in all segments. Record high profit for Q1 on a standalone basis.
  • Net income attributable to owners of SoftBank Corp. was ¥162.5 billion, up 11% year on year.
  • The progress rate for Q1 indicated steady progress against full-year forecasts, with a progress rate of 25% for revenue, 34% for operating income, and 33% for net income attributable to owners of SoftBank Corp.

Results by Segment

(1) Consumer segment

  • Revenue increased by 2% year on year, and segment income increased by 6% year on year.
  • Mobile service revenue increased by ¥7.6 billion year on year, following a continued growth trend since Q3 FY2023.
  • Cumulative smartphone subscribers increased by 4% from the end of the same period in the previous fiscal year.

(2) Enterprise segment

  • Revenue increased by 10% year on year, and segment income increased by 3% year on year.
  • Business solution and others revenue continued to perform firmly, increasing 27% year on year.

(3) Media & EC segment

  • Revenue increased by 6% year on year, and segment income increased by 74% year on year. Excluding one-time factors*1, segment income increased by 20% year on year.
  • LY Corporation announced tender offer for its treasury stock on August 2, 2024. Progress made toward maintaining listing in the prime market.

(4) Financial segment

  • Revenue increased by 20% year on year. Segment income in Q1 was ¥5.7 billion, achieving profitability following an improvement of ¥7.5 billion from a segment loss of ¥1.8 billion in Q1 FY2023. One contributing factor was PayPay Corporation returning to profitability on a consolidated basis.
    1. PayPay Corporation on a consolidated basis
      • Consolidated revenue*2 in Q1 was ¥57.2 billion. Consolidated EBITDA*3 was ¥9.3 billion. PayPay Corporation achieved positive consolidated EBITDA in Q1 for the second consecutive year. In addition, PayPay Corporation achieved positive operating income for the first time in a standalone quarter.
    2. SB Payment Service Corp.
      • Gross merchandise value (GMV) in Q1 was ¥2.3 trillion, up 21% year on year. Notably, growth has been driven by the non-telecommunications area, including transactions outside our Group, which increased by 26% year on year.

Progress Toward Building Next-generation Social Infrastructure

  • SoftBank Corp. signed a Memorandum of Understanding with Sharp Corporation for the construction of a large-scale AI data center inside Sharp Sakai Plant. SoftBank Corp. aims for rapid construction of an AI data center with a power capacity of 250 megawatts through conversion of various facilities.

Shelf Registration for the Issuance of Series 2 Bond-Type Class Shares

  • SoftBank Corp. has filed a shelf registration statement with respect to the issuance of Series 2 Bond-Type Class Shares, in order to strengthen its financial base for growth. There is a possibility that SoftBank Corp. will resolve to issue up to ¥200.0 billion of Series 2 Bond-Type Class Shares as early as during the first half of FY2024.
[Notes]
  1. *1
    Q1 FY2023: Gain on business transfer associated with the transfer of AI Company business operated by LINE Corporation (currently LY Corporation) to LINE WORKS Corp. (formerly WORKS MOBILE Japan Corp.)
    Q1 FY2024: Gain on loss of control of IPX Corporation (formerly LINE Friends Corporation), LINE NEXT Corporation, and ValueCommerce Co., Ltd.
  2. *2
    The figure is based on IFRS and is non-audited.
  3. *3
    EBITDA is calculated by adding depreciation and loss on disposal of non-current assets to operating income. The figure is based on IFRS and is non-audited.

This presentation is not for the purpose of soliciting investment or engaging in any other similar activities in Japan or any foreign country. Furthermore, this presentation does not constitute an offer of securities in the United States. The securities referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, and may not be offered or sold in the United States absent registration thereunder or an applicable exemption from registration requirements. In this case, no offering of securities will be made in the United States.