SoftBank Group (9984) Q1 2025 earnings summary

Executive summary

• Reported a net loss of ¥174.3 billion for FY2024Q1, despite an investment gain of ¥559.7 billion, reflecting improved performance compared to the prior year.

• Net Asset Value (NAV) reached a record high of ¥35.3 trillion as of June 30, 2024.

• Arm's performance exceeded analyst expectations, posting record revenue and 65% year-on-year operating income growth.

• Strategic focus on AI and Artificial Super Intelligence (ASI) with investments in AI chips, data centers, and robotics.

• Maintained robust financial stability, low loan-to-value ratio, and ample cash reserves to support further AI investments.

Financial highlights

• Net sales increased to ¥1,701.7 billion, up ¥144.2 billion or 9.3% year-over-year.

• Investment gain of ¥559.7 billion, a turnaround from a ¥699.0 billion loss in the prior year quarter.

• Income before income tax was ¥225.7 billion, up ¥401.9 billion year-over-year.

• Net loss attributable to owners improved to ¥174.3 billion from ¥477.6 billion loss a year ago.

• Cash and cash equivalents stood at ¥5,498.9 billion.

Outlook and guidance

• No consolidated earnings or investment guidance provided due to market volatility and unpredictability.

• Arm forecasts FY2024Q2 revenue of $780–830 million and full-year revenue of $3.8–4.1 billion.

• Arm expects FY2024Q2 non-GAAP EPS of $0.23–$0.27 and full-year EPS of $1.45–$1.65.

• Continues to prioritize NAV as the key performance indicator for investors.