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, with all segments posting profit growth.

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

• PayPay achieved profitability for the first time since consolidation, contributing to financial segment gains.

• Progress made on next-generation social infrastructure initiatives, including AI data center development and digital transformation.

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).

• Consumer business revenue was ¥681.7 billion, up 2%, with mobile revenue and operating income both increasing.

• Enterprise business revenue rose 10.5% to ¥215.6 billion; solutions revenue up 27%.

• Media & EC business revenue increased 6% to ¥408.3 billion; operating income up 74% due to one-off valuation gain (excluding, up 20%).

• Finance business revenue up 20% to ¥63.1 billion; PayPay revenue up 19% to ¥57.2 billion, with positive EBITDA for two consecutive quarters.

Outlook and guidance

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

• FY2025 forecast: Revenue ¥6,200.0 billion (+1.9% YoY), Operating income ¥900.0 billion (+2.7% YoY), Net income attributable to owners ¥500.0 billion (+2.2% YoY), Basic EPS ¥10.51 (post-stock split).

• No changes to previously announced forecasts; stock split (10-for-1) effective October 1, 2024.

• Continued investment in AI data centers and next-generation social infrastructure to drive future growth.

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