Earnings Results for Q3 FY2024
Earnings Results for Q3 FY2024（February 12, 2025）
SoftBank Group Corp. announced on February 12, 2025 its earnings results for the third quarter of the fiscal year ending March 31, 2025.
Webcast
Full-length (1:25:23)
[Short Video] SoftBank Group Earnings : Q3 FY2024 by Yoshimitsu Goto, Board Director, Corporate Officer, Senior Vice President, CFO & CISO
Earnings Highlights (Nine-month period ended December 31, 2024)
1. Results highlights
¥2,170.0 billion investment gain (¥538.9 billion loss for the same period of the previous fiscal year)
- ¥2,008.5 billion investment gain at Investment Business of Holding Companies
- Investment gains of ¥902.9 billion on Alibaba shares and ¥751.9 billion*1 on T-Mobile shares
Investment gain of ¥902.9 billion on Alibaba shares was offset by a derivative loss of ¥635.9 billion, which arose from prepaid forward contracts using Alibaba shares (recorded separately under “derivative loss (excluding gain (loss) on investments)”).
- ¥260.8 billion investment gain at SoftBank Vision Funds (excluding losses associated with SVF’s investments in the Company’s subsidiaries)
- The fair values of a portion of investments, including ByteDance and Coupang, increased.
- · Since inception, the gross performance has been a gain of $21.6 billion for SVF1 and a loss of $22.2 billion for SVF2.*2
Note: Changes in the fair value of the shares of consolidated subsidiaries, including Arm and SoftBank Corp., are not recorded in the Company’s consolidated statement of profit or loss.
¥1,270.9 billion income before income tax (improvement of \1,006.9 billion YoY)
reflecting the recordings of:
- Selling, general and administrative expenses of ¥2,206.5 billion
- Finance cost of ¥432.7 billion
- Foreign exchange loss of ¥251.9 billion. This was due to the yen’s depreciation in exchange rates used for translation at the third quarter-end compared with the previous fiscal year-end, amid a net excess of U.S. dollar-denominated liabilities over U.S. dollar-denominated cash and cash equivalents and loans receivable, primarily within SBG.
- Derivative loss (excluding gain (loss) on investments) of ¥791.2 billion. This arose from a loss relating to prepaid forward contracts using Alibaba shares following an increase in Alibaba’s share price. This loss offset the investment gain on Alibaba shares as mentioned above.
- Increase in third-party interests in SVF of ¥359.9 billion. This was mainly due to the recording of an investment gain of ¥740.3 billion at SVF1 (on an SVF segment basis), where the proportion of third-party interests is significant, resulting in an increase in third-party interests of ¥283.5 billion (attributable to investors entitled to performance-based distribution).
¥636.2 billion net income attributable to owners of the parent (improvement of ¥1,094.9 billion YoY)
reflecting the recordings of:
- Income taxes of ¥213.2 billion
- Net income attributable to non-controlling interests of ¥421.5 billion
2. Sequentially implement investments for growth
SBG and its wholly owned subsidiaries
Total investment of ¥426.6 billion*3
Examples of investments during the period:
- Investment in Wayve Technologies,*4 a U.K. company developing autonomous driving platforms based on data learning using AI
- Acquisition of additional interests in equity method associate SBE Global, which constructs and operates solar power plants in the U.S., converting it to a subsidiary
- Acquisition of U.K.-based company Graphcore, a designer and developer of semiconductor chips specialized for AI and machine learning, also converting it to a subsidiary
SVF
Total investment of $1.63 billion,*5 primarily in the Enterprise and Frontier Tech sectors, net of investments transferred from the Company to SVF and of follow-on investments in the Company’s subsidiaries that were eliminated in consolidation
3. Bond refinancing & issuance, and loan financing
Domestic straight bonds (SBG)
SBG issued domestic straight bonds of ¥100.0 billion to wholesale markets in April 2024 and ¥550.0 billion and ¥350.0 billion to retail markets in June and December 2024. Meanwhile, SBG redeemed domestic straight bonds of ¥450.0 billion upon maturity in June 2024.
Foreign currency-denominated senior notes (SBG)
In July 2024, SBG issued U.S. dollar-denominated senior notes of $900 million and euro-denominated senior notes of 900 million euros. In the same month, SBG also redeemed U.S. dollar-denominated senior notes of $767 million prior to maturity and euro-denominated senior notes of 638 million euros upon maturity.
Syndicate loan (SBG and its wholly owned subsidiaries)
- Term loan
The Company borrowed $2.9 billion through a term loan in September 2024. - Commitment line
The Company renewed its commitment line agreement in September 2024. After the renewal, the drawdown limits are $5,465 million for the U.S. dollar-denominated tranche and ¥35.6 billion for the yen-denominated tranche. As of the third quarter-end, the entire amount remained undrawn. - Hybrid loan
In November 2024, the Company secured a hybrid loan of ¥135.0 billion and completed the refinancing of ¥84.0 billion on a hybrid loan, which reached its first voluntary prepayment date in the same month. - Margin loan using Arm shares
In December 2024, the Company revised the margin loan using Arm shares, including an increase in the borrowing limit from $8.5 billion to $13.5 billion and other changes to the terms. As of the third quarter-end, the incremental $5.0 billion remains fully undrawn.
4. Share repurchase
Under the share repurchase program authorized for up to ¥500.0 billion authorized in August 2024, SBG purchased a cumulative total of ¥206.9 billion by the third quarter-end and a cumulative total of ¥209.9 billion by January 31, 2025.
Includes derivative gains and losses on investments and effects of foreign exchange translation
Gross amounts before deductions, such as third-party interests and taxes
The amount comprises the investment outlay by SBG and its primary wholly owned subsidiaries (excluding investments in U.S. Treasury Bonds), recorded under “Payments for acquisition of investments,” with the addition of net outlays associated with the subsidiary conversion of SBE Global and Graphcore Limited (“Graphcore”), recorded under “Payments (net) for acquisition of control over subsidiaries,” both of which are presented within the condensed interim consolidated statement of cash flows.
As part of the ongoing reorganization of the investment portfolio of SBG and its key investment subsidiaries, investment in Wayve Technologies Ltd. (“Wayve”) is scheduled to be transferred to SVF2 during the three-month period ending March 31, 2025 (the “fourth quarter”), subject to regulatory approval. See “(b) SoftBank Vision Funds” under “b. Results by Segment” for further details.
The amounts recorded in the condensed interim consolidated statement of cash flows
Refer to “ Consolidated Financial Report for the nine-month period ended December 31, 2024
” to find more details and definition of each company name and abbreviation.
Materials＆News
| Q1 | Q2 | Q3 | Q4 | |
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| FY2024 | Aug. 7, 2024 | Nov. 12, 2024 | Feb. 12, 2025 | ー |
| Webcast |
Video |
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| CFO Reflections |
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| Highlights |
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| Quarterly Results |
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| FY2023 | Aug. 8, 2023 | Nov. 9, 2023 | Feb. 8, 2024 | May 13, 2024 |
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| CFO Reflections |
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| Quarterly Results |
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