SoftBank Corp president and CEO Junichi Miyakawa (pictured) forecast consolidated operating income in fiscal 2023 (ending 31 March 2024) will rise as it takes the offensive to improve profitability after booking double-digit year-on-year declines over the past two quarters.
In a New Year’s message, the chief emphasised the Japanese company will work to “bring about a V-shaped recovery” from a weak first half of fiscal 2022, which was impacted by sharp price cuts in mobile services.
With the consolidation of PayPay, Miyakawa said it formed a new financial business segment, which he believes will become a major force for the company. An operating loss of JPY19 billion ($146.5 million) is forecast for the segment in fiscal 2022 due to an expected PayPay loss in the second half.
He also highlighted a recovery in smartphone subscriber net additions and 5G network population coverage reaching 90 per cent. Registered PayPay users passed the 50 million mark at end-September.
Miyakawa explained Covid-19 (coronavirus) restrictions and the war in Ukraine impacted the global landscape and business environment, making it more difficult to make predictions. He recognised the importance of managing risks across its supply chain and noted increases in electricity costs have been significant for a company using large amounts of power.
Following a 30.5 per cent drop in net profit in the July to September period to JPY108.6 billion, Miyakawa said in an earnings call in November capex in fiscal 2023 will be cut by JPY100 billion to improve profitability in fiscal 2023.Subscribe to our daily newsletter Back