Summary of Earnings
Results Briefing
for Q3 FY2024

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Date Monday, February 10, 2025 4:00 pm - 5:30 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 Q3 FY2024.

Consolidated Results
for Q3 FY2024

Company-wide Results

  • Revenue for Q1-Q3 FY2024 was ¥4,811.5 billion, up 7% year on year. Revenue increased in all segments.
  • Operating income was ¥821.9 billion, up 12% year on year. Profit increased in all segments.
  • Net income attributable to owners of SoftBank Corp. was ¥436.6 billion, up 7% year on year.
  • The progress rate for Q1-Q3 indicated steady progress against full-year forecasts for FY2024 (after upward revision announced in November 2024), with 76% for revenue, 87% for operating income, and 86% for net income attributable to owners of SoftBank Corp.

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 ¥25.6 billion year on year, returned to growth for the first time in a Q1-Q3 period.
  • 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 remained positive in Q3, following on from Q2. This positive trend is expected to continue, with a positive balance forecasted for the full fiscal year.

(2) Enterprise segment

  • Revenue increased by 10% year on year, and segment income increased by 9% year on year.

(3) Media & EC segment

  • Revenue increased by 4% year on year, and segment income increased by 33% year on year. Excluding one-time factors*2, segment income increased by 17% year on year.

(4) Financial segment

  • Revenue increased by 19% year on year. Segment income for Q1-Q3 was ¥26.0 billion, achieving profitability following an improvement of ¥29.5 billion from a segment loss of ¥3.5 billion in Q1-Q3 FY2023. One contributing factor was PayPay Corporation returning to profitability on a consolidated basis.
  • Consolidated revenue*3 for PayPay Corporation in Q1-Q3 was ¥183.7 billion. Consolidated gross merchandise value (GMV)*4 was ¥11.3 trillion, up 23% year on year. Consolidated EBITDA*5 was ¥35.3 billion, with positive consolidated EBITDA recorded during the Q1-Q3 period for the second consecutive year. In addition, PayPay Corporation achieved positive operating income for the third consecutive quarter.

Reorganization to Strengthen Financial Business

  • In December 2024, PayPay Corporation announced that it will make PayPay Bank Corporation a subsidiary*6. Furthermore, in February 2025, PayPay Corporation announced that it will make PayPay Securities Corporation a subsidiary*7.
  • The purpose of this transaction is for PayPay Corporation to take the lead in strengthening banking and securities services.
  • Centralize the Group's financial services under PayPay Corporation to accelerate the growth of the financial business.

Progress Toward Building Next-generation Social Infrastructure

  • In November 2024, SoftBank Corp. announced “AITRAS,” a converged AI-RAN solution. Through “AITRAS,” SoftBank Corp. primarily aims to enhance the competitiveness of mobile services, as well as realize distributed AI data centers and create new revenue streams.
  • In December 2024, SoftBank Corp. resolved*8 to acquire the land and buildings, etc. of Sharp Corporation's Sakai Plant for approximately ¥100.0 billion, with a view to constructing a large-scale AI data center.
  • In February 2025, SoftBank Corp. announced a partnership with OpenAI. SoftBank Corp. will promote the development and sales of “Cristal Intelligence*9,” an advanced AI that integrates systems and data of individual enterprises in a way that is customized for each company.
  • To accelerate the deployment of “Cristal intelligence,” SoftBank Group has agreed to establish “SB OpenAI Japan*10,” a joint venture with OpenAI. This joint venture will market “Cristal intelligence” exclusively to major companies in Japan, aiming to transform management and operational practices across various industries in Japan.

ESG

  • SoftBank Corp. was selected as a component of the Dow Jones Sustainability World Index (DJSI World) for the third consecutive year. It was the only Japan-based company selected in the “Telecommunications” industry.
  • For the first time ever, SoftBank Corp. received the Grand Prize at the NIKKEI SDGs Management Awards for the second consecutive year. It was also selected as a “Prime Seat Company,” which recognizes companies that consistently achieve high evaluations.
[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
    Q1-Q3 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 its exclusion as a subsidiary following a third party's investment in it.
    Q1-Q3 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
    The use of the “Send/Receive” function of “PayPay Balance” between users is not included. Payments via Alipay and LINE Pay, etc. and payments through “PayPay Credit (formerly Atobarai)” are included. The figures represent the sum of GMVs of PayPay Corporation and PayPay Card Corporation, with internal transactions between the two companies eliminated.
  5. *5
    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.
  6. *6
    Subject to the approval of the relevant authorities, etc., we aim for PayPay Corporation's acquisition of shares in PayPay Bank Corporation to take effect on April 1, 2025.
  7. *7
    The conversion of PayPay Securities Corporation into a subsidiary by PayPay Corporation is scheduled to take effect on April 1, 2025.
  8. *8
    The resolution is subject to SoftBank Corp. obtaining more than 250 megawatts of electric power within four years after the completion of the purchase procedure.
  9. *9
    “Cristal intelligence” is a provisional name and not the official product name.
  10. *10
    SB OpenAI Japan, which will be 50:50 owned by OpenAI and a company established by SoftBank Group Corp. and SoftBank Corp., will be consolidated to SoftBank Corp.