On May 11, 2020, SoftBank Corp. (TOKYO: 9434) held its earnings results briefing for the fiscal year ended March 31, 2020 (FY2019). On a consolidated basis, revenue was 4,861.2 billion yen (a 4% increase year-on-year), operating income was 911.7 billion yen (an 11% increase year-on-year) and net income was 473.1 billion yen (a 2% increase year-on-year) for FY2019. The increases in revenue and income marked record high figures for SoftBank. In addition to the financial results, President & CEO Ken Miyauchi explained the impact of COVID-19, managerial priorities to achieve Sustainable Development Goals (SDGs) and the company’s growth strategy.
Reflecting on a carrier’s responsibilities in the COVID-19 pandemic period
Miyauchi began his presentation by expressing sympathy to all those affected by COVID-19, and noted that SoftBank fully recognizes its responsibility as a provider of communications services, a lifeline that connects people. He commented, “We’ll continue to pursue our mission of supporting societal infrastructure by offering remote education tools and enterprise telework solutions free-of-charge, and offer as much support as we can.”
Miyauchi also explained how SoftBank will strengthen its initiatives to achieve SDGs. While SoftBank has made social contributions under its corporate philosophy of “Information Revolution — Happiness for everyone,” with the start of 5G commercial services and the advancement of Digital Transformation (DX), society is entering a major paradigm shift. To realize the goal of “a world where all things, information and minds are connected,” Miyauchi explained that SoftBank had identified 6 priority issues (materiality) to help resolve social issues and achieve SDGs.
All segments see increased revenue and operating income in FY2019
Turning to financial results for FY2019, Miyauchi noted that all business segments achieved increases in revenue and operating income year-on-year. This was due to growth in the Consumer Segment thanks to the “Multi-brand Strategy” and further expansion of the solutions business in the Enterprise Segment, as well as strong performances from the Yahoo Segment, Distribution Segment and payment settlement-related businesses. Miyauchi mentioned that new businesses such as PayPay, DiDi Mobility Japan, WeWork Japan, OYO Hotels Japan and Cybereason Japan also made steady progress.
Turning to the Enterprise Segment, Miyauchi said that society’s shift to teleworking is a tailwind for the company and that an increasing number of companies are looking to undergo digital transformations. He said that SoftBank will work to resolve issues facing companies and society by offering a variety of solutions.
Based on the results of FY2019, Miyauchi said that SoftBank will offer a dividend per share of 85 yen, an increase of 10 yen year-on-year, as initially planned while promoting CAPEX for 5G and other investments for the future.
Aiming for increased revenue and profits in FY2020
At the close of his presentation, Miyauchi outlined SoftBank’s management policy and forecast for FY2020. “While there is some negative impact from COVID-19, we also expect increased demand due to secondary effects,” he said. Miyauchi also noted that the business integration of Z Holdings and LINE is expected to reach completion. In closing, he said, “While taking the impact of COVID-19 into consideration, we will continue to work to increase both profits and dividends.”
(Original article posted on May 12, 2020)
by SoftBank News Editors