SoftBank has announced its consolidated financial results for the first quarter of the fiscal year, showcasing robust performance and strategic initiatives aimed at long-term growth. The report highlights significant year-on-year improvements across key financial metrics.
For the three months ended June 30, 2024, SoftBank reported:
- Revenue: ¥1,535,722 million, a 7.4% increase from the previous year.
- Operating income: ¥303,927 million, up 23.4%.
- Profit before income taxes: ¥273,912 million, a 10.2% rise.
- Net income: ¥200,569 million, an increase of 15.5%.
- Net income attributable to owners of the company: ¥162,510 million, up 10.8%.
- Total comprehensive income: ¥222,448 million, growing by 15.0%.
The earnings per share also saw an uptick, with basic earnings per share at ¥34.32 compared to ¥30.99 in the same period last year.
SoftBank’s growth is driven by its vision of becoming a crucial player in the digital society, guided by its corporate philosophy of “Information Revolution—Happiness for everyone.” The company aims to establish next-generation social infrastructure essential for the development of a digital society, focusing on data processing and electricity demands spurred by the evolution of AI.
Market trends
Despite geopolitical risks, yen depreciation, and inflation, Japan’s economy is experiencing a modest recovery. The COVID-19 pandemic has accelerated the adoption of digital solutions, with telework, online shopping, and contactless payments becoming commonplace. These trends underscore the need for digitalisation in both the corporate and government sectors, a transformation SoftBank is well-positioned to support.
SoftBank’s Medium-term Management Plan aims to rebuild its business foundation and achieve record-high profits. The Beyond Carrier growth strategy is central to this, focusing on:
- Expanding telecoms: Enhancing collaboration between telecoms and other group businesses to drive user engagement and synergies.
- Generative AI investments: The company has secured approval from the Ministry of Economy, Trade and Industry for plans to ensure a stable supply of cloud programs, involving a significant capital expenditure of approximately ¥150 billion. This includes building new AI computing platforms across multiple domestic sites, with an expected subsidy of up to ¥42.1 billion.
Major initiatives
- Stock split and shareholder benefits: A stock split is scheduled for October 1, 2024, where each share will be divided into 10. A new shareholder benefits program will present PayPay Points to long-term shareholders.
- 5G collaboration: In May 2024, SoftBank and KDDI Corporation agreed to expand their collaborative efforts in building 5G networks, extending coverage from rural to nationwide areas and exploring the utilisation of 4G base station assets.
- AI and digitalisation: With the growing importance of digitalisation, SoftBank’s initiatives in AI and cloud computing are poised to drive future growth and support Japan’s transformation into a digital society.
As of 30 June 2024, SoftBank’s total assets stood at ¥15,690,883 million, with total equity at ¥3,912,144 million. The company maintains a healthy equity ratio of 15.0%. The forecast for the fiscal year ending 31 March 2025, anticipates revenue of ¥6,200,000 million, operating income of ¥900,000 million, and net income attributable to owners of the company at ¥500,000 million.
By embracing digitalisation and investing in next-generation technologies, SoftBank aims to sustain its growth trajectory.
(Photo by Possessed Photography)
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