TLDR
- SoftBank Corp (9434) closed at ¥238.40 on Monday, up 1.27%.
- First-half revenue rose 11.7% to ¥3.80 trillion, and operating income hit a record ¥642.1 billion.
- Cloud and AI revenue jumped 36.7%, and financial segment income rose 73.9%.
- The company raised its full-year revenue forecast to ¥7.9 trillion and kept its ¥8.80 dividend.
- Parent SoftBank Group (9984) reports earnings Tuesday after its stock fell 11% on Friday and 4.2% on Monday.
SoftBank Corp (9434) closed at ¥238.40 on Monday, up 1.27%. The company reported record first-half results and raised its full-year targets.
Revenue for the six months ended September 30 rose 11.7% to ¥3.80 trillion. Operating income climbed 2.1% to a record ¥642.1 billion.
Net income attributable to owners rose 4.5% to a record ¥364.5 billion. Adjusted EBITDA gained 10.3% to ¥1.07 trillion.
Not every line moved up. Consolidated net income fell 5.5% to ¥449.4 billion because of higher income tax expenses and a tax benefit last year that did not repeat.
Growth Across All Five Segments
All five reportable segments grew revenue. Enterprise led the way, up 11.8% to ¥538.9 billion.
Inside Enterprise, cloud and AI revenue jumped 36.7% to ¥163.8 billion. The company pointed to stronger demand for AI computing infrastructure, cloud and security services.
Financial revenue rose 27.5% to ¥241.9 billion. Segment income leapt 73.9% to ¥67 billion.
Higher transaction values in QR-code payments and credit card services did the heavy lifting there. Distribution revenue also grew 19.1% to ¥602.5 billion.
ICT-related products and recurring cloud and software-as-a-service sales supported that gain. Those sales were a steady source of income for the segment.
Higher Targets, Same Dividend
SoftBank Corp now expects full-year revenue of ¥7.9 trillion, up from ¥7.5 trillion. Its operating income guidance moved to ¥1.16 trillion from ¥1.1 trillion.
The net income attributable forecast rose to ¥610 billion from ¥560 billion. Part of that reflects a gain from the sale of preferred equity interests in Energy Global.
The annual dividend forecast stays at ¥8.80 per common share. That includes the interim payment of ¥4.40.
Parent SoftBank Group (9984) had a rougher start to the week. Its stock fell 11% on Friday and 4.2% on Monday, and it is down 23% for the year.
The cost of insuring the group’s debt against default hit a four-year high. Net interest-bearing debt stood at ¥10.8 trillion at the end of June, up from ¥6.6 trillion a year earlier.
The group has spent $64.6 billion on a 13% stake in OpenAI. Arm stock stood at $175 on Friday, about 60% below its June record high.
China also blocked the group’s $5.4 billion purchase of ABB’s robotics unit. The companies are weighing whether to carve out the China business, Bloomberg News has reported.
SoftBank Group reports earnings Tuesday, with numbers due at 0630 GMT. CFO Yoshimitsu Goto’s briefing starts at 0730 GMT.
