SoftBank (9434) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 revenue of ¥1,535.7 bn, up 7.4% year-over-year, and record Q1 operating income of ¥303.9 bn, up 23.4% year-over-year, with growth across all segments.

• Net income attributable to owners rose 10.8% year-over-year to ¥162.5 bn; adjusted EBITDA up 6.9%.

• Company advanced its Beyond Carrier strategy, focusing on digitalization and AI infrastructure.

• PayPay achieved positive operating income for the first time on a quarterly basis.

• Announced a 10-for-1 stock split effective October 1, 2024, to broaden investor base.

Financial highlights

• Revenue: ¥1,535.7 bn (+7.4% YoY); operating income: ¥303.9 bn (+23.4% YoY); net income attributable to owners: ¥162.5 bn (+10.8% YoY).

• Adjusted EBITDA: ¥460.6 bn (+6.9% YoY); basic EPS: ¥34.32 (vs. ¥30.99 last year).

• All segments posted revenue and profit growth; Media & EC operating income up 74% (20% excluding one-time factors).

• Financial business revenue up 20% year-over-year; PayPay became profitable.

• Cash and cash equivalents at period end: ¥1,906.9 bn (+¥68.6 bn YoY).

Outlook and guidance

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

• FY2025 forecast: revenue ¥6,200.0 bn (+1.9% YoY), operating income ¥900.0 bn (+2.7%), net income attributable to owners ¥500.0 bn (+2.2%).

• Media & EC segment achieved 43% of its full-year operating income target in Q1; Financial segment exceeded full-year target.

• No change to previously announced guidance; stock split and new shareholder benefits program to support investor growth.

• Long-term vision focuses on building next-generation social infrastructure and expanding digital transformation initiatives.