On February 3, 2023, SoftBank Corp. (TOKYO: 9434) President & CEO Junichi Miyakawa presented earnings results for the nine months ended December 31, 2022 (Q3) of the fiscal year ending on March 31, 2023 (FY2022). At the press conference held in Tokyo, Miyakawa noted that SoftBank is making steady progress to achieve its full-year forecasts.
All business segments see higher sales
Miyakawa said revenue in Q3 was up by 4% year-on-year (YoY) at 4,345.5 billion JPY as sales rose across all business segments.
Operating income also registered an increase, rising 22% YoY to 982.0 billion JPY. Much of the rise was attributable to a re-measurement gain of 294.8 billion JPY associated with making PayPay Corporation a consolidated subsidiary on October 1, 2022.
The operating income increase contributed to a 21% YoY increase in net income, which came to 508.6 billion JPY.
On a consolidated basis, Q3 revenue, operating income and net income were all at record highs since SoftBank Corp.’s listing in 2018.
Miyakawa noted that steady progress is being made toward achieving SoftBank’s full-year forecasts for FY2022, with 74% being achieved for revenue and 94% for operating income and net income achieved in Q3.
By business segment, the Consumer segment saw operating income decrease 17% YoY, mainly due to the continued impact of mobile service price reductions. Miyakawa noted that he expects the impact to bottom out in FY2022, and to fade out significantly in the next fiscal year and thereafter.
Cumulative smartphone subscribers increased by 7% YoY, due mainly to growth driven by the ‘Y!mobile’ brand.
The Enterprise segment saw a 3% YoY increase in operating income as steady growth continued despite the impact of one-time factors, including a provision for litigation.
At the Financial Business segment, which was newly established in Q3 FY2022 with the consolidation of PayPay Corporation on October 1, 2022, segment income decreased due to the one-time impact of consolidating PayPay and other factors. Notably, at the end of December 2022, PayPay registered users reached 54 million.
The Yahoo! JAPAN/LINE segment saw its operating income decline by 17% YoY as it logged increased expenses associated with employee recruitment for future growth. Miyakawa explained that Z Holdings Corporation—a consolidated subsidiary of SoftBank Corp. that owns Yahoo Japan Corporation and LINE Corporation—had decided to make managerial and structural changes to accelerate the synergy generation resulting from the Yahoo Japan and LINE business integration. The changes are scheduled to take effect on April 1, 2023.
Asked about the changes, Miyakawa said that the individuals of managerial team, while all extremely talented, were not able to fully utilize their strengths due to barriers in the existing structure. “I think very highly of these changes and I’m sure they will produce great results,” he said.
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More info |
Presentation material (PDF: 15.3MB/47 pages) Supplementary materials: Overview of SoftBank (PDF: 1.91MB/20 pages) |
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(Updated on February 6, 2023)
by SoftBank News Editors
