Thank you for your patience. We will now begin the SoftBank Corp fiscal year 2026 third quarter earnings results briefing. First, let me introduce today's presenters. Mr. Miyakawa, President and CEO of SoftBank Corp. Mr. Fujihara, Director, Executive Vice President, and CFO. Today's briefing is being streamed live on the internet. Thank you for tuning in. Now, Mr. Miyakawa will provide you an overview of SoftBank's consolidated financial and business performance.
Good afternoon, ladies and gentlemen, my name is Miyakawa. Thank you very much for coming all the way to this venue, despite the piled up snow on the roadside. Now, the election was over yesterday. I was amazed that Takaichi-led LDP took such great strides. It was a historic win, and I hope that will trigger turnaround of this country, Japan. Now, I'd like to report our financial results for the third quarter. Revenue reached a record high of JPY 5,195 billion, representing 8% increase year-on-year. The progress rate to the full year forecast stands at 78%. Looking at the breakdown, revenue increased across all segments. Distribution, financial, showed a particularly strong growth. Media and EC was essentially flat or +1%.
This was due to a system outage caused by a ransomware attack at ASKUL, which resulted in a revenue decrease of over JPY 60 billion in the third quarter. Operating income amounted to JPY 884.1 billion, 8% increase year-on-year. The progress rate is 88%, and performance is tracking steadily toward our target of JPY 1 trillion. By segment, media and EC posted a 2% decline in profit due to an approximately JPY 20 billion negative impact from ASKUL, while all other segments recorded a profit growth. Enterprise and distribution achieved double-digit growth in profit, and supported by strong performance at PayPay, the finance segment delivered more than double growth.
Net income was JPY 485.5 billion, or 11% up year-on-year. The progress is 90%, and this is also proceeding steadily. This is a summary of progress against our full year forecast. Revenue, operating income, and net income stands at 78%, 88%, and 90% respectively, which we see as solid progress. As shown here, progress by segment is also steady, with all segments exceeding 80%. Based on this progress, we have decided to update our full year earnings forecast for this fiscal year. The revised figures are shown here. Although there was an impact from ASKUL, we have made a modest update to reflect the latest situation, although we may have to expect some negative impact in the fourth quarter.
We will continue working toward achieving a record high level of net income. Sorry, I have technical trouble. From here, I will explain performance by segment. First is the consumer segment. Revenue was JPY 2,253.2 billion, or up 3% year-on-year. Core mobile revenue continues to grow. Operating income was JPY 468.3 billion, an increase of 6%. The progress rate against the full year forecast is 85%, and we are gaining confidence in achieving our target. The number of smartphones subscriptions reached 31.96 million, an increase of 2% year-on-year. Compared to the previous year, subscription increased. However, if you take a look at this chart, over the past three months, we recorded a net decrease of 100,000 subscriptions. I think it was the first time that we posted such a negative performance.
While it's embarrassing to show a chart like this, but this is something that we are doing deliberately, so I'd like to explain the background. Until now, the consumer segment has grown mainly, particularly through Y!mobile, by expanding subscriptions to compensate decline of ARPU. As we focused aggressively on subscription or acquisition, however, the number of so-called hopping users, or those who switch carriers in a short period of time, increased. Because those so-called hopping users tend to cancel quickly, we believe the situation is not sustainable for management. With a desire to change this situation, we began structural reforms in September last year.
By focusing on users who will use our services over the long term and restraining the acquisition of users who cancel quickly, we aim to transform our business structure into one that can achieve both revenue and profit growth. Now, I will explain the enterprise segment. Revenue was JPY 733.2 billion, 9% year-on-year increase. Solutions continued to perform well, delivering 13% double-digit growth. Operating income was JPY 158.1 billion, an increase of 13%. The progress rate is 84%, and as with the consumer segment, we believe we can achieve the target. Next is the Media and EC segment. Revenue was JPY 1,226.1 billion, or up 1%. Excluding the JPY 63.6 billion negative impact from ASKUL, revenue would have increased by 7%.
So I believe that business is performing well in general. Operating income was JPY 206.3 billion, down 2%. Excluding approximately JPY 20 billion impact from ASKUL, operating income would have increased by 7%. ASKUL services have now returned to normal operations. Going forward, ASKUL plans to implement large-scale promotional activities to accelerate its performance recovery, and we will support these efforts as a group. Next, I'll explain the financial segment. Revenue was JPY 295.4 billion, representing a 24% increase. Operating income was JPY 66 billion, more than double year-on-year. Turning to PayPay, GMV reached JPY 14.3 trillion, up 24%. EBITDA increased by 83%. From here, I'd like to provide an update on our initiatives toward building next-generation social infrastructure.
Looking ahead to a society that coexists with AI, we are building distributed AI data centers. Today, I'd like to explain progress at our Brain Data Center. In order to build AI training environments using GPUs, complex hardware and software setup must first be carried out by engineers with specialized expertise, with high-skilled engineers. In so-called bare metal leasing, this is a special term for bare metal leasing, GPU leasing. This process takes several weeks or even several months, depending on scale. In order to solve this, we have developed software called Infinia AI Cloud OS. This provides GPU computing resources as a cloud service.
With this, engineers at companies are able to use the computing infrastructure as a cloud service, just like existing cloud platforms. As a service provider, we can also efficiently deliver training and inference environments, maximizing utilization of our facilities. Please take a look at this. Only a limited number of infrastructure providers, such as hyperscalers like Microsoft, Google, AWS, and so-called neo cloud providers, such as CoreWeave and Nebius, currently have this kind of structure. Taking this opportunity, we would like to pursue for overseas expansion. Until now, GPUs have mainly been used for training for generative AI. With agentic AI and physical AI becoming a part of daily life, demand for inference will further increase. We are proceeding with the construction of brain data centers, where large-scale GPUs are installed mainly for training.
By completing Infinia, we'll be able to address not only training demand, but also inference demand. Going forward, we will unify computing infrastructure across all layers, including regional brain and AI RAN, using a common software. So Japan is in short of power. This will allow us to integrate all distributed platforms from core to MEC, and operate in coordination. We are not building mere data centers stacked with GPUs. Using Infinia as a weapon for the future, we aim to provide a sovereign cloud that can compete with overseas operators. With this, the foundation for sovereign cloud has finally been established, and as the next generation social infrastructure provider, we will begin offering cloud services. From here, I would like to provide an update on our future business enhancement related to optical fiber services. Just a brief announcement.
We've established a joint venture with Sony Network Communications to jointly own and operate access facilities for optical fiber services. The equity ratio is 51-49, with SoftBank consolidating the results. Under a governance structure where both companies appoint equal number of directors, we will streamline operations and enhance profitability. Let me elaborate on that. I will briefly explain the business structure of SoftBank Hikari. We currently provide two models of optical fiber services. One model is provided by leasing optical fiber lines from NTT and using NTT's facilities, so-called FLET'S. The other one is provided using our own equipment installed within central offices, especially providing to enterprise customers. Through this collaboration, the joint venture will jointly own the equipment in these facilities, and both companies will pursue greater capital investment efficiency.
Additionally, by jointly using optical fiber leased from NTT, we will increase capacity utilization per line, reduce costs, and improve profitability. Please think of this initiative as the optical fiber version of what we achieved with KDDI. With 5G Japan, we've already reduced capital investment costs by approximately JPY 50 billion, out of a JPY 120 billion target. So this is how we made this joint venture with Sony. Next, I would like to explain the transition to the next generation management structure, as announced on January 29th. Chairman Imai will become director and special advisor to the board, and Executive Vice President and COO Shimba will become director and chairman. They are my comrades who have fought together since our broadband business days. For SoftBank to continue growing sustainably, passing management to the next generation is an important theme.
At Enterprise, under the leadership of Chairman Imai, we have achieved record profits over the past two years, and successfully passed the baton to the next generation. Now, the consumer segment, led by Shimba, will also transition to the next generation. With this change in management structure, we are achieving a significant generation shift. The average age of retiring directors is 62, while the average age of newly appointed directors is 52. We've also appointed executives in their forties, with Miyazawa, aged 44, responsible for AI. Under this rejuvenated executive structure, we intend to push our growth strategy more strongly than ever. Finally, I would like to talk about ESG initiatives. Last November, we were selected for the prime seat for the second consecutive year at the Nikkei SDGs Management Survey.
We ranked first for the third consecutive year in Nikkei's Decarbonization Management ranking, GX 500. So this, this places us first among 830 companies in Japan, and achieving this for three consecutive years is unprecedented. We were selected for the A list, the highest rating by CDP, for the first time. Let me summarize today's presentation. In the third quarter, we continued to achieve both revenue and profit growth, and we updated our full-year forecast for revenue, operating income, and net income. We also discussed our collaboration with Sony to strengthen optical fiber service, Infinia, as a key element toward providing a Sovereign Cloud. Changes to our management structure to ensure generational succession, and our strong external ESG evaluations. That concludes my presentation. Thank you so much. Now, we'd like to move on to the Q&A session.
We will begin with a question from the venue, followed by members of the press on Zoom, and then analysts and institutional investors joining via Zoom. If you wish to ask a question via Zoom, please join using the instructions provided in advance, and click the Raise Hand button to indicate your interest. To avoid feedback, we kindly ask that you turn off the live board webcast after joining Zoom. We'd like to take as many questions as possible, so we ask that each person limit to a maximum of two questions. When you are called upon, please state your company name and your name before asking your question. The first question?
My name is Kaneko, ITmedia . You revised the commission, eSIM free of charge, and SIM card, JPY 1,100. So I wonder why you did that, and used a different rate for different products? And going forward, do you plan to raise your pricing, or why did you not decide to raise price plan now?
Thank you very much. eSIM and the SIM, we made a decision from the perspective of physical goods cost. We started with charging, but after we got feedback from users, we made that decision. About raising price, we have not said at all that we are not gonna raise price in the future forever. As you know, in general, we are looking at increasing the cost, so at some point we may have to raise price. So we will discuss further to come to a conclusion eventually.
Thank you. My name is Sano, freelance writer. Two questions. First, regarding the strategy perspective, in the previous earnings results presentation, you also mentioned, compared to NTT, Mr. Maeda mentioned that competition hasn't really changed, and KDDI, is Mr. Matsuda also mentioned that they haven't really increased the cost for G&A cos t, but or acquisition cost or promotion cost. So what, what do you see for the competition environment? And the second question is that towards the Rakuten, Mr. Miyakawa mentioned some comments. So would you like to comment on that as well?
So regarding the competition environment, I don't see it has changed much. We have changed how to acquire new customers. And as for those who may have possibility for hopping, then we do not really accept. So for that number has not been included, therefore, it shows the big decrease in the net. So as a result, what we are looking at is that this is what we had expected. Compared to the other carriers', acquisition cost, we haven't really made big differences, and almost the same. So Rakuten Mobile is good at acquisition, renewals, and maybe they are a little bit ahead. As for Rakuten, they have achieved 10 million.
I think it's a break-even point. So, well, I also admire that the Well, the founder is the one actually makes it happen. So, they have achieved 10 million, so I would like to congratulate him. Well, I have many to say, but since there is the fourth carrier emerged, so in order to strengthen Japan's network So when we were doing with three carriers, so the power is three-fourths. Now, with four, it becomes four-fourths. So, we welcomed the coming of the fourth carrier. However, if that has really contributed to in this industry or not, if they were to do as they would like to do as the business, then it's different from what I see. So it's a little bit disappointing.
Next.
Suzuki, freelance journalist. First question is about AI data center. You mentioned that currently, training is the main, but it's going to be shifted to inference. However, still, a lot of computing is used for training. So when do you think that kind of turning point comes, a shift from training to inference?
Well, overseas, I think from CapEx perspective, they spend more to get prepared for inference. And in Japan, we have tried to do as much training as possible. Looking at OpenAI Gemini, the number of parameters would be 10 trillion, while our case was 100 billion. So I think it depends on how much financial capacities you have. We try to charge ahead, but at some point, we have learned a lot of expertise, and we have great resources.
So at some point, we want to try harder to be on par with overseas big guys in the area of training. And inference, well, the computing that we have built, that resources can be used not only for training, but also inference as well. For example, physical AI. As the fundamental AI model is established, then e ach and every enterprise can start using that resources for inference, and maybe use case would be physical AI. So we've been trying hard to catch up with the trend.
Next, PayPay's IPO, the timing, please.
Well, my simple answer is we cannot say, but we are in good progress in terms of preparation for IPO. At this moment, however, we have nothing to disclose with you.
My name is Abe from TV Tokyo. Two questions. First, as you mentioned about the results of the ruling party's victory, I want to hear your words. And you also mentioned that it could be the trigger to, for Japan to recover the power. So why you think so? Yeah, this is my personal opinion. So the high popularity of Ms. Takaichi's regime, and I admire her strengths. So the Japan's government's aim, which I agree with, and so especially, one of their strategies to reinforce AI, investment, especially in the AI domain, we also like to contribute to it as much as possible.
So for nation's growth and for a further happiness for the people, we also like to realize, and we would like to also support as much as possible. So, even though I said that it could be the trigger, I'm sorry if I misled you, but, I wish or I hope that it could be a trigger, to for Japan to recover the power. So, the Prime Minister Takaichi has a great potential, I would like to expect highly. And the second question regarding AI. Prime Minister Takaichi also announced to reinforce the AI as one of the core strategies of the government. Regarding the domestic AI development, how you're going to get involved in?
As for domestic general purpose-based model, as I've mentioned a couple of times, I totally agree with that direction. And to establish in a collaboration manner, I would like to also play some role, too. In Japan, there is a vast amount of critical data, which is not available or which is not seen on the web, so we would like to collaborate with the government, and we would like to pursue this opportunity.
Thank you.
Thank you. Next question, please.
Ishikawa, freelance journalist. NTT Docomo made a financial results announcement, and device purchase support program hit NTT Docomo hard. How about you, in your case? As I think we take great control. So any plan to change the sales practice?
Well, I think that the government is talking about upper limit of JPY 40,000. And as for discount of devices, I think only global suppliers can win if carriers compete each other in device discount. I think center of the discussion is so-called hopping users. Our money is used as a sort of incentive for those hopping users. So I hope that they other carriers will follow us to address that kind of situation. But if the government sets a rule to control that kind of situation, that's also welcome.
Personally, from a customer's perspective, if we offer a discount over the long run, I think that'll be more beneficial to users. In the past, we just wanted to take customers from competitors, and that's why this competitive environment is as we see now. But again, if you stand from the user's perspective, service should be beneficial over a long run, which is available in different sectors. So that's what I think. And Docomo announced that satellite connectivity will be launched early 2026.
How about , SoftBank? We will do, we will do direct communication between the land and the satellite, so we are looking at next year. Can you differentiate by satellite business?
I don't think so. Hopefully, if we have Japan-made satellites to be used to provide connectivity and to support terrestrial network, that'll be great, but we have not found solution yet for that. But, of course, we will strike a good balance of users and service availability, but we'll try different approaches in mid-long term.
My name is Sekiguchi, Keitai Watch. I have two questions. First is about optical fiber services.
As you pursue this, and how you're going to differentiate, and with this service, and, it's It is all about FTTH or, or it could to impact to the, backbone, in terms of the, investment efficiency. And the second question is about, as last week, NTT Docomo announced their recent earnings results. They are going to maintain the, base station, pace as it is, and then to catch up, with others in the following fiscal year. So not to-- The quality is not limited to the number of base stations, but, NTT is actually, aggressive, achieving that. And so what about SoftBank view towards fiscal year 2026 onwards? Regarding, the optical fiber services, how to differentiate?
This time, with NURO and SoftBank Hikari's collaboration this time, so this is just like, as I explained, it's a 5G. And so rather than two different companies invest, one company should invest to improve efficiency. So it, it's a simple facility integration. So from the service perspective, we two companies, as competitors, as is, and we would be operating. So on the actual sales field, we will be competing with each other. So at the end of the day, when we're looking at the long term, fixed network service. This will become more important in the future.
So as the traffic increases with AI, and so just like when the broadband spread it, moving forward, 5G and Hikari optical fiber, and they will be the strong weapons for strengthening the infrastructure. So there are 4,000 base stations of NTT we are utilizing, and if we can expand this, and we would be able to increase our service as well. We would like to take more initiatives proactively. So KDDI, with the base of the power infrastructure, and we would like to work together with K with them. So we would like to provide more, offer more options to the users. And we have established the base for us to be able to invest more.
So whether that would be used for base stations, yes, we will, because the investment efficiency will be lower, further. So we should be able to select what to use. So we will be proactively doing this, and it's not going to be spread or enhanced at once. It will be gradually. So regarding DOCOMO's base stations, your second question. So for SoftBank, we would like to combine frequencies, and we have established different stations. We starting with the low band, and we have designed the base stations for a low band as well. So speaking of the scale of DOCOMO, and they should be able to catch up in the next two fiscal year. If they are two, then they should be able to do so.
But as for the radio and how the traffic should be carried, and considering the traffic as well, and we do also have good experience and the know-how, so we would like to keep working on and improving that. And we are now planning to enhance SE, and we were to to focus on this for 5G, but we had We had to consider the budget not only for 5G, so therefore, we would like to roll out SE more and so that it could be connected to a 6G as well. And next question, please ?
You saw double growth of financial business. Could you elaborate on that? And how much more you want to get the financial business increased? That's the first question. And second, DOCOMO announced that they will utilize storefronts to support financial business, so I wonder, you have a similar idea to utilize physical assets like retail shops to support financial business growth?
Those are two questions about financial, which is my background. I don't know if I can answer three question because I'm not familiar with addressing financial questions. The first, again, we are in the process of IPO preparation. We don't want to be interpreted as soliciting public. But again, we posted a 200% growth in financial business, and there is still an opportunity for them to grow further.
And the second question, whether we're gonna utilize our retail shops to grow the business, a PayPay business, again, it's hard for us to address that question because it may be considered as a solicitation. Not only QR code-based payment, online, a payment solution is growing as well. So since PayPay is a subsidiary of LINE Yahoo, I think they are supporting each other to further enhance PayPay's business and corporate value. I am sorry that I cannot elaborate too much about the financial business, but at the right point of time, we'd like to share with you our strategies in financial business.
Ono from The Yomiuri Shimbun. One question. About DOCOMO will be ending their 3G network. You also explained that you will change, you have to sell towards the 3G customers. Device special support was also applied. So can you tell us your view towards the 3G? And regarding the hopping users, we are now have a different way of looking at the potential customers or users of the under the hopping users. You think that 3G users will be your high potential customers?
So because we see them as a little different type of customers as hopping users, so we would like to also consider them as well.
Next questions. MJ from Bloomberg.
About AI investment. You mentioned that you want to accelerate investment going forward, so could you share your investment plan and strategy of AI data centers, and what's the progress so far against your plan?
Well, in fact, when we communicate with you our midterm plan, second half of midterm plan, I will talk up more about that. So please, bear with us and wait until then.
Ishino, freelancer. You also mentioned about the 100,000 net losses, so that will be improved by changing the structure and also reducing the number of hopping users. You said that it would improve. So how far you are expecting to see the improvement? You're not going to go after net additions? The second question is about device discount. So you mentioned about preventing hopping users from joining more. So with the price plan, those who have higher price program and you'll be providing, so what is your view?
To answer your first question, so how long the net losses would continue?
So I'm not particularly focusing on the net additions. So this is my strong intention. However, we would like to pursue and increase revenue and income, and that also strongly related to acquisition cost. We need to keep good balance among those. So next fiscal year, we can even say that flat result it be sufficient. So it will be challenging for net additions. We may see the similar result bar graph as this time, but we would like to see how and when it can turn, especially the churn rate.
So it may take six months or so, so we may see the positive impact of churn rate decrease in the next quarter. So we hope that we can catch up on DOCOMO, and we would like to improve our structure. So since we do have the good foundation to do so, we would like to focus on that. As for the price plan discussion, so I'm accepting what's been discussed right now. From SoftBank perspective, the higher ARPU with the higher loyalty customers, we would like to give benefit. And for short term, like those of who those ways to lower ARPU, and we would like to also keep balance for acquisition cost among those. And we are also looking for, if any other way to improve this.
Thank you.
Well, in the interest of time, we take two more questions from the venue and close the question from the venue. First one, Matsumoto from Business Insider Japan.
I have two questions. First, about ARPU. Looking at your data sheet, ARPU looks growing, and what's the driver? And, do you think that this trend continues next year onwards? That's the first question to you, Miyakawa-san. And second, the domestic telecom market is saturated, but looking at the consumer business, like other competitors are doing, based upon the core business, like consumer, you may want to grow different segments like financial. But do you think that you see still opportunity for telecom business to go forward?
I think looking at the competitors, I think, shifting brand is key, like a Pay-toku or device discount program, which is based upon our integration with PayPay Business, and, users who need more volume. So depending on the user profile, we encourage users from one brand to the other, and, I think that's one reason why ARPU is going up, so upgrading of brand from low-end to high-end. So for low ARPU users, if I may put it bluntly, those tend to leave us to other competitors, so the remaining high ARPU users help us to increase the ARPU absolute amount. And we expect the similar trend in the fourth quarter and the next year as well. So again, we want to pursue quality versus quantity when it comes to acquisition. So I think we can give you a positive result in the future as well.
And next question is about whether a telecom market is saturated, and maybe there's no opportunity to grow further. I disagree. There are a lot of things that you can do in the telecom business. For example, 5G network. Once we turn our network into standalone basis, I think that will give us more options to do. And the local 5G is maybe technology that we can leverage to offer more services. But finance, by chance, is growing, thanks to PayPay. And initially, we supported PayPay, but then recently, I think PayPay started supporting us. So I think we are looking at the good synergy effect. So, not only financial sector, but also as long as there is opportunity, we want to seek a collaboration opportunity with not only financial business, but also other areas as well.
My name is Zaima from Toyo Keizai. I have two questions. First is about SBG's acquisition of the DigitalBridge in the US, under that, Vantage Data Centers and those who are doing the business in Japan for the data centers as well. So for SoftBank, utilizing that DigitalBridge's assets, you think that you can do so, or have you ever really discussed about leveraging that with the SBG? The second is about organization structure. KDDI announced the fictitious transactions recently. So including the new businesses, the acquisitions, and you have more group companies. So what is your view towards the governance?
The first question is about the DigitalBridge acquisition by SBG. As you said, that this is our parent company's transaction, so therefore, it is too early for me to make any comments. However, right now, they are still working towards the regulatory approvals. So prior to that regulatory approvals, there is nothing that we can discuss, so we haven't started our consideration yet. So once they concluded the transactions, I've asked Mr. Son that we would also like to have some time to discuss about that for collaboration. So the second question is about governance.
So we cannot say that there is no risk for any company. It can happen to any of us. So we need to So with that assumptions, so we have organized internal governance to check our group companies. So if those companies are listed, and they have their own rules, so it is a bit difficult in terms of parent and child, listed. So however, whether that function is working or not is what I, as the President, need to oversee, and also, yeah, supervise as well. So I would like to keep it, that in mind.
Now, we'd like to take questions from the press participating via Zoom. If you have a question, please click the Raise Hand button. First, Mr. Murai at Diamond, please.
I have two questions. First, about the new management structure starting April 1st. Shimba will become the chairman. And I believe successor will be younger person. And also, as of June, Mr. Imai and Mr. Fujihara will retire, according to the press release. Since SoftBank Business, Yahoo BB business, Vodafone Japan, Japan Telecom acquisition, I think SoftBank's telecom business has been built in the history by those key people, like Imai-san and Fujihara-san. So those legendary managers will retire pretty soon. What that message is about? Over 20 years and longer, those legendary managers are at the top of the management team, and Miyakawa-san has been CEO for the last five years, and finally, your management team's succession plan is announced. In other words, it sounds like it, it took slow or time to really rejuvenate the senior managers.
Yes, Murai-san, you are very well aware of how we have been growing. Imai-san, Son-san, and Fujihara-san, when we launched Yahoo BB twenty-something years ago, those key people have been running respective businesses at the top, and we know each other very well, and it's comfortable working as the senior management team. But Son-san is in the mid-fifties. Excuse me, sixty. Son-san, 63 years old, and I am over 60, and Imai-san is also in sixties as well. So this kind of a senior management structure will not go forever. When I became CEO, we thought about completely change the senior manager's structure very quickly, but the first year of my CEO was when we aggressively reduced device price, so we couldn't afford
that back then, because we needed to have those, key senior managers who have expertise and experiences. So we kept someone like Imai-san, despite his will, but, now they are going to retire as a chairman. We have been trying to figure out the best timing, and as you can see in our, financial results, we are ready to change the executive team. I consulted with Mr. Son for advice, because Mr. Son was one of our shareholders, and he disagreed at first. He was like: "I didn't know those younger guys." I said that, "It's not a matter of you know them or not. While I am still at the realm of the SoftBank senior management team, I would like to have those younger executives to get prepared." So again, now is the time to change the senior management team. That's my simple answer.
So Fujihara-san, you have been building SoftBank telecom business from the scratch. So can I hear from Fujihara-san?
Well, actually, I'm gonna ask Fujihara-san to give you a few words later.
So then, my next question, about cloud business. You're gonna launch the cloud business in April 2026, you said? Could you elaborate on that? Sovereign AI is, I think, what you're talking about, by keeping data centers in Japan. I wonder, what kind of potential customers are you looking at? Or have you already signed a deal with any companies? And also, how do you work with OpenAI? Because you are gonna have OpenAI's Sorry, SoftBank's and OpenAI joint venture.
Yes, like I said, we are looking at launching cloud service sometime next year. Now, our OS is ready. While talking about sovereign data center, sovereign cloud, and sovereign AI, those are the tools that we build, a next-generation social infrastructure, and we have been preparing for a long time to do this.
Who would be the potential customers?
Well, we don't assume any potential enterprise customers. In Japan at the moment, in general, enterprises use overseas cloud services, and I would like them to look at us as one of the options. In 2001, when we started Yahoo! BB and SoftBank, and I was CTO then, and cloud would be the key competitive market. We understood, but we didn't get started. We were really busy building telecom business, even though we expected it, cloud to come. I think now is the last opportunity to do this. Two years ago, we started building software, and finally we are ready.
Test result shows very positive. That's why we made this announcement. Going forward, we want to present as a cloud operator, even in Japan. About collaboration with OpenAI in Crystal Intelligence. Well, that's a different story. OpenAI is doing agentic AI, and the SoftBank KK, SoftBank Corp, is looking at sovereign data center and sovereign cloud. We are in different areas, if you will. But keeping data in Japan, which is what we call sovereign AI of o r sovereign data center, that's very important in Japan for mid-long term. Of course, global companies May have a different view globally, but as a SoftBank Corp, building next generation social infrastructure, social infrastructure in Japan is the theme. So there are things that we can work with OpenAI in that respect, or maybe not in other respect.
We would like to take questions from Tokunaga-san, Daiwa Securities. Please unmute and ask your questions, please.
I have two questions. So first is about your revised, the upwardly revised results. So there are- I believe there was a comment that you would like to also use it for the shareholder's return. So if there was no ASKUL incident, and you would have considered the shareholders' return as well?
At the end of second quarter, we had expected that we would have better results. So therefore, we were just about to start discussion about the shareholders' return, and once the figure catches up, then we would like to proactively do that if there was possibility.
The second question is about cloud business, and you said that you would like to play big and also looking at the overseas business. However, looking at overseas, and already overseas players are going ahead. So overseas, you mentioned, is about the Southeast Asia or the US?
From now on, even if we try to compete with GAFA with the same model, we are not going to win. Therefore, we would like to take a different way And we are in a better position in terms of understanding the telecommunications field and Like distributed data centers or AI RAN at the base stations. So that kind of unique approaches we have taken this time. With that view, so there are industries welcoming this approach. Not from the consumer segment, but we would like to approach to the B2B so that we can leverage our strengths. So from the B2B, we would like to approach too.
As for the GPUs, Sakai, Tomakomai, you think it's sufficient for these two data centers?
Of course, well, Sakai is a big investment for us, plus Tomakomai. For AI RAN, we would like to also allocate GPUs, as the same number of base stations means that we will be using more AI RAN. Also, we are preparing for building
Thank you. That concludes Q&A session. Last but not the least, Mr. Miyakawa would like to say a few words.
Fujihara-san has been CFO for 22 years, such a long time. He'll not be on the stage at the next earning call, and the new CFO will be here with me next time. Fujihara-san will be in SoftBank as senior advisor, but this is the last stage for him to stand in the podium for earnings call. Fujihara-san, would you like to say a few words? Fujihara, CFO.
Today's earnings announcement will be my last stage. As Miyakawa-san introduced, I have served as CFO for 22 years, but including my parent company days, today is the 95th time I have appeared on the stage of earnings announcement. When I took office as CFO, I was in a situation with an operating deficit of JPY 100 billion at ADSL. Nippon Telecom, Vodafone Japan, Willcom, eAccess, and Yahoo Japan, LINE, PayPay, they become member of SoftBank. Together with those teams, under the leadership of President Miyakawa, we have grown into a company that can achieve an operating profit of JPY 1 trillion this fiscal year. This year is the last year of the current medium-term plan, and we were able to celebrate the milestone of JPY 10 trillion in total market cap. For myself, I see as a closure of one chapter.
Next year is the starting year of the next mid long-term plan. I am confident that SoftBank will be able to achieve further growth by focusing on AI. I trust my successor, Akiyama-san, to steer the wheel, and I believe that he will support President Miyakawa and realize his next growth. Finally, I'd like to say received a lot of inspiration from everyone through the earnings announcement, and that helped me to grow, and that helped SoftBank to grow. I truly appreciate your support, and I look forward to working with SoftBank in the future, and your support continuously would be highly appreciated. Thank you.
You would achieve a hundredth earnings announcement with five more. But joking aside, thank you very much, Fujihara-san. Thank you very much for you coming to SoftBank Corp FY 2026, third quarter earnings announcement.