SoftBank (9434) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended September 30, 2024, rose 7.4% year-on-year to ¥3,152.1 billion, with all segments posting growth and operating profit up 13.9%.

• Net income attributable to owners of the parent grew 7.2% year-on-year to ¥323.9 billion.

• Full-year guidance was revised upward, with operating profit forecast raised by 6% and net profit by 2%, reflecting strong segment performance and one-time gains.

• PayPay achieved operating profitability for the second consecutive quarter, contributing to improved financial results.

• Progress made in building next-generation social infrastructure, including expansion of AI computing platforms.

Financial highlights

• Revenue: ¥3,152.1 billion (+7.4% YoY); Operating income: ¥585.9 billion (+13.9% YoY); Net income: ¥393.8 billion (+5.6% YoY).

• Adjusted EBITDA rose 5.1% year-on-year to ¥936.4 billion.

• EPS (basic): ¥6.83; EPS (diluted): ¥6.72, reflecting a 10-for-1 stock split effective October 1, 2024.

• Interim dividend maintained at ¥43 per share; annual dividend forecast unchanged at ¥86 per share (pre-split basis).

• Free cash flow: ¥206.4 billion for the period; adjusted free cash flow (excluding LINE Yahoo, PayPay, etc.): ¥306.5 billion.

Outlook and guidance

• Full-year revenue forecast raised to ¥6,350 billion (+4.4% YoY); operating income to ¥950 billion (+8.4% YoY); net income to ¥510 billion (+4.3% YoY).

• Upward revision driven by Media & EC and Finance segment outperformance and one-time gains from subsidiary deconsolidation.

• At first-half, progress rates: revenue 51%, operating profit 65%, net profit 65% of full-year guidance.

• Dividend policy remains stable, with no change to payout guidance.

• Consumer and Enterprise segments are on track to meet or exceed full-year targets.