SoftBank (9434) Q1 2025 Investor Call earnings summary

Executive summary

• Revenue reached ¥1,535.7 billion, up 7.4% year-over-year, marking a record high for the first quarter, with growth across all business segments.

• Operating income rose 23.4% to ¥303.9 billion, also a record high, driven by strong performance in Media & EC and Financial segments.

• Net income attributable to owners increased 10.8% year-over-year to ¥162.5 billion, with both operating and net income growing at double-digit rates.

• PayPay achieved positive operating income for the first time on a quarterly basis, turning profitable ahead of expectations.

• The company is executing a medium-term plan focused on digital infrastructure, AI, and expanding its business beyond telecommunications.

Financial highlights

• Revenue: ¥1,535.7 billion (+7.4% YoY); Operating income: ¥303.9 billion (+23.4% YoY); Net income attributable to owners: ¥162.5 billion (+10.8% YoY).

• All business segments posted revenue and profit increases.

• PayPay consolidated revenue up 19% year-over-year; EBITDA positive for two consecutive quarters.

• Basic EPS: ¥34.32; Diluted EPS: ¥33.80.

• Capital expenditures for the quarter: ¥203.4 billion, up ¥63.8 billion YoY, mainly for AI computing platform and network improvements.

Outlook and guidance

• Q1 revenue, operating income, and net income represent 25%, 34%, and 33% progress toward full-year forecasts, respectively.

• No changes to previously announced FY2025 forecasts: Revenue ¥6,200.0 billion, Operating income ¥900.0 billion, Net income attributable to owners ¥500.0 billion.

• Stock split (10-for-1) effective October 1, 2024, to broaden investor base.

• Ongoing investments in AI and data centers to drive future growth.

• Media & EC and Financial segments are ahead of pace for full-year operating income targets.