SoftBank has announcement The report presents consolidated financial results for the first quarter of the fiscal year, which reflect solid performance and strategic initiatives aimed at long-term growth. The report highlights significant year-over-year improvements in key financial indicators.
For the three months ended June 30, 2024, SoftBank reported:
- Income:1,535,722 million yen, an increase of 7.4% over the previous year.
- Operating result: 303,927 million yen, up 23.4%.
- Profit before income tax:273,912 million yen, an increase of 10.2%.
- Net revenue:200,569 million yen, an increase of 15.5%.
- Net profit attributable to owners of the company:162,510 million yen, up 10.8%.
- Total overall result:222,448 million yen, an increase of 15.0%.
Earnings per share also saw an increase, with basic earnings per share rising to ¥34.32 compared to ¥30.99 in the same period last year.
SoftBank’s growth is driven by its vision to become a key player in the digital society, guided by its corporate philosophy of “Information Revolution – Happiness for All.” The company aims to establish next-generation social infrastructure essential to the development of a digital society, focusing on data processing and electricity demands driven by the evolution of AI.
Market trends
Despite geopolitical risks, a weaker yen, and inflation, Japan’s economy is experiencing a modest recovery. The COVID-19 pandemic has accelerated the adoption of digital solutions, with remote working, online shopping, and contactless payments becoming commonplace. These trends underscore the need for digitalization in the corporate and government sectors, a transformation that SoftBank is well-positioned to support.
SoftBank’s medium-term management plan aims to rebuild its business foundations and achieve record profits. The Beyond Carrier growth strategy is at the heart of this plan, focusing on:
- Telecommunications expansion:Strengthen collaboration between telecoms and other group activities to promote user engagement and synergies.
- Investments in Generative AI:The company has obtained approval from the Ministry of Economy, Trade and Industry for projects to ensure a stable supply of cloud programs, which involves a major investment expenditure of about 150 billion yen. This includes building new AI computing platforms at multiple domestic sites, with an expected subsidy of up to 42.1 billion yen.
Major initiatives
- Stock Splits 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 offer PayPay points to long-time shareholders.
- 5G Collaboration:In May 2024, SoftBank and KDDI Corporation agreed to expand their collaborative efforts in building 5G networks, extending coverage from rural areas to nationwide areas and exploring the utilization of 4G base station assets.
- AI and digitalization:With the growing importance of digitalization, SoftBank’s AI and cloud computing initiatives are poised to drive future growth and support Japan’s transformation into a digital society.
As of June 30, 2024, SoftBank’s total assets were 15,690,883 million yen, with total shareholders’ equity of 3,912,144 million yen. The company maintains a healthy equity ratio of 15.0%. The forecast for the fiscal year ending March 31, 2025 calls for revenue of 6,200,000 million yen, operating income of 900,000 million yen, and net income attributable to owners of the company of 500,000 million yen.
By embracing digitalization and investing in next-generation technologies, SoftBank aims to maintain its growth trajectory.
(Photo by Possessed Photography)
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