The following is a summary of the SoftBank Corp. (SOBKY) Q4 2024 Earnings Call Transcript:
Financial Performance:
SoftBank reported a revenue increase of JPY 172 billion, up by 2.9%, exceeding the upwardly revised forecasts.
The adjusted EBITDA for the company increased year-on-year by JPY 100 billion, and operating income saw an increase of ¥110.7 billion with contributions from all segments.
Consumer segment experienced a decrease in revenue by ¥59.1 billion due to a downturn in the electricity trading business.For FY 2024 and FY 2025, SoftBank aims to balance growth investments and mid-term targets achievement.
Enterprise segment achieved double-digit growth mainly by solution revenue, with an increase of ¥37.2 billion year-on-year.
Total income was ¥198.0 billion, a 23.9% increase, due to cost optimization in commerce and deconsolidation of LINE Securities.
Net income saw a significant increase due to increased operating income and absence of impairment or valuation loss recorded in the previous year.
Business Progress:
Despite a downturn in certain areas, SoftBank managed to achieve mobile revenue increase one year ahead of its mid-term target.
The company's PayPay platform significantly increased its user base and number of payments.
For FY 2024, SoftBank plans to maintain a high return level across all business segments with an ambitious target of over ¥1 trillion in FY 2025.
There are plans for investments into future growth areas, particularly generative AI, while also maintaining JP¥600 billion free cash to pay dividends.
SoftBank plans to invest ¥150 billion into its data center business and Edge technology, partially financed already, with various funding options being considered.
The company emphasizes investments into its Tomokomai Center, and is focusing on increasing the profitability of its data center business.
More details: SoftBank (ADR) IR
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