SoftBank Reports Decrease in Capital Expenditures and Revenue Growth

SoftBank, the prominent Japanese telecommunications operator, has disclosed its financial performance for the nine months ending December 31, 2023. The company reported a decrease in (Capex) capital expenditures alongside notable revenue growth across various segments.
SoftBank 5G networkIn the specified period, capital expenditures totaled ¥463.5 billion, marking a year-on-year decrease of ¥77.1 billion. This reduction primarily stemmed from decreased investments associated with the completion of 5G coverage deployment initiatives.

Despite the decline in capital expenditures, SoftBank observed a significant increase in revenue, reaching ¥4,511.6 billion, up by ¥166.1 billion (3.8 percent) compared to the previous year. This revenue surge was attributed to several key factors across different segments:

Financial Segment: Revenue surged by ¥83.3 billion, primarily driven by the consolidation of PayPay Corporation since October 2022.

Distribution Segment: A notable increase of ¥36.1 billion was recorded, fueled by robust growth in revenue from Information and Communication Technology (ICT) products and subscription services.

Media & EC Segment: Revenue witnessed a rise of ¥29.9 billion, largely due to increased revenue from account advertising and search advertising.

Enterprise Segment: Revenue in this segment grew by ¥25.5 billion, primarily attributed to heightened demand for digitalization solutions.

However, within the Consumer segment, revenue experienced a slight decline, decreasing by ¥5.9 billion (0.3 percent) year-on-year to ¥2,121.8 billion. This dip was primarily attributed to reduced revenues from electricity and mobile services, partially offset by increased revenues from sales of goods and other sources.

Specifically, mobile revenue within the Consumer segment saw a year-on-year decrease of ¥3.8 billion. This decline was mitigated compared to the previous fiscal year, primarily due to the reduced impact of mobile service price reductions in spring 2021 and an increase in smartphone subscribers, SoftBank said in its earnings report.

Notably, broadband revenue witnessed an increase of ¥4.7 billion (1.6 percent) year-on-year, driven by a rise in subscribers for the SoftBank Hikari fiber-optic service.

In the Enterprise segment, revenue increased by ¥25.5 billion (4.6 percent) year-on-year, reaching ¥576.4 billion. This growth was attributed to increases in mobile revenue, business solutions, and other revenue streams.

SoftBank’s performance underscores its resilience amidst challenging market conditions, with strategic initiatives and segment diversification contributing to overall revenue growth despite some segment-specific challenges.


More like this

Vodafone achieves 1.8 Gbps 5G download speed

Vodafone has tested a new 5G technology in Germany...

German operators may get 5 years to remove Huawei and ZTE from 5G network

German government and mobile phone operators have reached a...

Vodafone says Meta optimises videos to improve network efficiency

Telecom operator Vodafone said its smartphone customers will have...

5G spectrum auction in Netherlands fetches € 174.4 mn

The Netherlands government has fetched € 174.4 million during...