SoftBank Corp. Reports Increased Revenues and Profits for Q2 FY2019

SoftBank Corp. (TOKYO: 9434) held a press conference on November 5, 2019 to present its earnings results for the first six months (H1) of the fiscal year ending March 31, 2020 (FY2019). President & CEO Ken Miyauchi, summarizing the results at the beginning of his presentation, said, “In the first half we were able to lay a foundation for increased revenues at all businesses. We also achieved growth in a balanced fashion.”

Revenue sources diversifying outside consumer mobile business

With figures restated retrospectively in the previous fiscal year to account for the consolidation of Yahoo Japan Corporation* on June 27, 2019, revenue for FY2019 H1 increased 6% year-on-year to 2,373.1 billion JPY. Operating income grew by 7% to 552.0 billion JPY and net income increased by 4% to 327.4 billion JPY in H1. Miyauchi noted that revenues increased at all businesses as the diversification of revenue sources kicked into full gear.

  • *Yahoo Japan Corporation transitioned to a holding company structure through a company split and changed its name to Z Holdings Corporation on October 1, 2019.

High levels of customer satisfaction after price changes

When presenting the results of the Consumer segment, Miyauchi stressed the high levels of customer satisfaction at all three of SoftBank Corp.’s consumer mobile brands: “SoftBank,” “Y!mobile,” and “LINE MOBILE.” This was due to the market positioning of the three brands and the speedy introduction of price plans that unbundle device payments and communication charges, as well as competitive data plans.

Integrated SoftBank and Yahoo Japan teams to grow enterprise sales

Reviewing the results of the Enterprise segment, Miyauchi noted that a variety of cloud and AI solutions that have been under development for approximately ten years are about to enter the monetization phase. As examples, he introduced a centimeter level positioning service developed with proprietary technology and new solutions that will utilize the full-fledged commercialization of 5G.

Miyauchi also stated that preparations are underway to form new SoftBank and Yahoo Japan teams to strengthen the sales capabilities of Yahoo Japan’s media business and drive synergies in enterprise businesses.

Miyauchi remarked that PayPay, which is seeing remarkable growth amid Japan’s drive to go cashless, has the potential to develop a number of new businesses with Yahoo Japan.

Targeting growth with new businesses while maintaining shareholder returns

Turning his attention to new businesses, Miyauchi said that collaborations with SoftBank Vision Fund investees like DiDi, OYO and WeWork were performing well. “We’ll continue to work with our partners to execute our Beyond Carrier growth strategy while maintaining attractive returns for shareholders,” he added.

Ensuring network readiness for disasters

Referencing Typhoon Hagibis, which ravaged parts of Japan in October 2019, Miyauchi outlined SoftBank’s disaster response activities, noting that a disaster response center was set up two days before the typhoon struck. Taking its responsibility as a carrier that provides social infrastructure seriously, Miyauchi said that SoftBank will continue to strengthen its disaster response efforts.

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(Original article posted on November 5, 2019)
by SoftBank News Editors