Summary of Earnings
Results Briefing
for Q2 FY2024

< Back

Date Friday, November 8, 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 Q2 FY2024.

Consolidated Results
for Q2 FY2024

Company-wide Results

  • Revenue for H1 FY2024 was ¥3,152.1 billion, up 7% year on year. Revenue increased in all segments. Record high results for the H1 period.
  • Operating income was ¥585.9 billion, up 14% year on year. Profit increased in all segments.
  • Net income attributable to owners of SoftBank Corp. was ¥323.9 billion, up 7% year on year.
  • The progress rate for H1 indicated steady progress against full-year forecasts, with 51% for revenue and 65% for both operating income and net income attributable to owners of SoftBank Corp.

Upward Revision of Full-year Forecast

  • SoftBank Corp. has revised upward its full-year forecasts for FY2024, which were announced in May 2024. The revised forecasts are as shown in the table below.
Initial forecast
(Announced in May 2024)		 Revised forecast
(Announced this time)		 Increase Increase rate
Revenue ¥6,200 billion ¥6,350 billion +¥150 billion +2%
Operating income ¥900 billion ¥950 billion +¥50 billion +6%
Net income attributable to owners of SoftBank Corp. ¥500 billion ¥510 billion +¥10 billion +2%

Results by Segment

(1) Consumer segment

  • Revenue increased by 3% year on year, and segment income increased by 4% year on year.
  • Mobile revenue increased by ¥12.2 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.
  • The balance of brand conversion*1 from Y!mobile and other brands to the SoftBank brand turned positive for the first time in the H1 period since the mobile service price reductions in the spring of 2021.

(2) Enterprise segment

  • Revenue increased by 11% year on year, and segment income increased by 12% year on year.

(3) Distribution segment

  • Revenue increased by 44% year on year, and segment income increased by 20% year on year. Contributing factors included robust growth in revenue from AI servers, in addition to solid growth in ICT-related products for enterprise customers.

(4) Media & EC segment

  • Revenue increased by 5% year on year, and segment income increased by 40% year on year. Excluding one-time factors*2, segment income increased by 16% year on year.

(5) Financial segment

  • Revenue increased by 19% year on year, and segment income for H1 was ¥13.6 billion, achieving profitability following an improvement of ¥15.6 billion from a segment loss of ¥2.0 billion in H1 FY2023. One contributing factor was PayPay Corporation returning to profitability on a consolidated basis.
    1. PayPay Corporation on a consolidated basis
      • Consolidated revenue*3 in H1 was ¥116.5 billion. Consolidated EBITDA*4 was ¥19.6 billion. PayPay Corporation achieved positive consolidated EBITDA in H1 for the second consecutive year. In addition, PayPay Corporation achieved positive operating income for the second consecutive quarter.
    2. SB Payment Service Corp.
      • Gross merchandise value (GMV) in H1 was ¥4.6 trillion, up 22% year on year. Notably, growth has been driven by the non-telecommunications area, including transactions outside our Group, which increased by 27% year on year.

Status of Individual Shareholders

  • As part of our initiatives to expand the base of individual shareholders, we conducted a 10-for-1 stock split of SoftBank Corp.'s common shares*5 effective October 1, 2024.
  • The number of shareholders has already surpassed 1 million (an increase of 140,000 from the end of March 2024) as of the end of September 2024, even before the stock split. In addition, there was an increase in the share of younger age groups in their 40s and under to 34%*6 (up 7 points from the end of March 2024). In the future, we will continue aiming to increase the number of individual shareholders through measures such as providing a shareholder benefits program.

Progress Toward Building Next-generation Social Infrastructure

  • At the end of October 2024, the installation of approximately 4,000 units of NVIDIA Hopper GPUs (H100) was completed. Leveraging one of Japan's top-level AI computing platforms, we will accelerate additional training of homegrown Large Language Models (LLMs) specialized for the Japanese language with 460.0 billion parameters. We aim to achieve commercial deployment in FY2025.
  • In order to secure funds for growth investments, SoftBank Corp. issued Series 2 Bond-Type Class Shares (total issue amount: ¥200.0 billion, fixed annual dividend rate: 3.200%*7) in October 2024. SoftBank Corp. expects to use the proceeds for purposes such as realizing services using generative AI and building Next-generation Social Infrastructure.
[Notes]
  1. *1
    Calculated by subtracting the number of users who converted from SoftBank brand to Y!mobile/LINE MOBILE/LINEMO brands from the number of users who converted from Y!mobile/LINE MOBILE/LINEMO brands to SoftBank brand.
  2. *2
    H1 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.) and a gain on loss of control of JDW Co., Ltd., which handles “LINE TAXI” in Taiwan, resulting from a third party's investment in it.
    H1 FY2024: Gain on loss of control of IPX Corporation (formerly LINE Friends Corporation), LINE NEXT Corporation, and ValueCommerce Co., Ltd.
  3. *3
    This figure is based on IFRS and is non-audited.
  4. *4
    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.
  5. *5
    Based on the record date of September 30, 2024, each share of the Company's common stock held by shareholders entered or recorded on the final shareholder register as of that date was split into 10 shares.
  6. *6
    Estimated by the Company based on data provided by certain securities companies.
  7. *7
    If the record date falls in a fiscal year ending on or before March 31, 2030: 3.200% per annum. If the record date falls between April 1, 2030 and March 31, 2050: the interest rate of One-Year Japanese government bonds (JGBs) as of the date two business days before the last day of the fiscal year immediately before the fiscal year (Annual Rate Quotation Date) in which the record date falls plus 2.960%. If the record date falls in a fiscal year ending on or after April 1, 2050: the interest rate of One-Year Japanese government bonds (JGBs) as of the Annual Rate Quotation Date with respect to the fiscal year in which the record date falls plus 3.710%.

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The Bond-Type Class Shares (the “Securities”) referred to herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (hereinafter the “Securities Act”). The Securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The Securities referred to above will not be publicly offered or sold in the United States.