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SoftBank CEO discusses IPO plans for telecom unit as profits surge YOY

SoftBank Group Corp. Chairman and CEO Masayoshi Son said during a Feb. 7 earnings call that the company's plans to "expand the customer base and generate new businesses" are primary reasons for preparing the telecom unit's initial public offering.

The company has begun preparations to float shares of SoftBank Corp. in 2018. SoftBank Group said the IPO will enable "greater clarity" on the separation of its investment and telecommunications activities, in order to "better respond to the various needs of investors."

The Japanese conglomerate chief also shared future company plans, where he wants to "form a SoftBank synergy group so that we can sustain for 300 years" and "to grow as a big tree to capture as many fruits as possible."

In recent years, SoftBank rapidly expanded its global investment portfolio, mainly by investing in ride-hailing, semiconductors and e-commerce. Son told investors at the end of last year that he is looking to put money into "unicorns." In 2017, SoftBank targeted global technology aggressively.

"We invest in unicorn companies that is the leader of a certain segment, so whether or not they can do IPO. But when they can do IPO, that's the measurement that we are looking at when we make a decision on where to invest," Son said in an earnings call.

The company's net sales for the 9-month period ended Dec. 31, 2017, increased 4% year over year to ¥6.811 trillion. Third-quarter net sales reached ¥2.400 trillion, up from ¥2.310 trillion a year ago.

The company's net income attributable to the owners of the parent jumped 20% to ¥1.015 trillion in the 9-month period, which includes the impact of the changes made to Sprint Corp.'s deferred tax based on the provisions in the new U.S. tax law, as well as derivative loss from the monetization of Alibaba Group Holding Ltd. shares. Actual growth in net income excluding the derivative loss is at 39%.

Operating income for the third quarter ended December 2017 came in at ¥273.99 billion from ¥281.97 billion year on year, including operating income from SoftBank Vision Fund and Delta Fund at ¥50.19 billion. Attributable net income totaled ¥912.32 billion, up from ¥80.26 billion a year ago.