SoftBank Corp.: history, ownership, mission, how it works & makes money

A Brief History of SoftBank Corp.

SoftBank Corp., a prominent Japanese multinational conglomerate holding company, was founded in 1981 by Masayoshi Son. Initially established as a software distributor, the company quickly expanded its operations. By the mid-1990s, it had shifted its focus towards telecommunications and internet services.

In 1994, SoftBank launched its first internet service provider, which marked its entry into the online services market. By 1996, the company acquired a substantial stake in Yahoo! Japan, solidifying its position in the digital landscape.

In 2000, SoftBank made a significant investment in the telecommunications sector by purchasing the mobile telecommunications company, Vodafone Japan. This acquisition was pivotal as it set the stage for SoftBank's dominance in the mobile communications arena.

The company rebranded its mobile arm as SoftBank Mobile in 2006 and after launching Apple's iPhone in Japan in 2008, it rapidly increased its market share. By 2018, SoftBank Corp. had become Japan's largest mobile carrier, boasting over 44 million subscribers.

In 2013, SoftBank's acquisition of Sprint Nextel for approximately $21.6 billion showcased its ambition to expand globally. The acquisition aimed to enhance its position in the North American telecommunications market.

SoftBank's aggressive investment strategy continued with the creation of the SoftBank Vision Fund in 2017, which raised $93 billion to invest in technology firms globally. This fund has invested in notable companies including Uber, WeWork, and DoorDash.

As of March 2023, SoftBank Corp. reported revenues of approximately ¥4.9 trillion (around $45 billion), with a net income of ¥1.1 trillion (approximately $10 billion), demonstrating strong financial performance amidst a competitive landscape.

As of October 2023, SoftBank Corp. is listed on the Tokyo Stock Exchange under the ticker symbol 9984 and has a market capitalization of approximately ¥6 trillion (around $56 billion).

SoftBank continues to engage in strategic partnerships and significant investments in technology sectors, focusing on artificial intelligence, robotics, and telecommunications innovation. The company’s history is marked by ambitious ventures that have redefined its role in the global market.

A Who Owns SoftBank Corp.

SoftBank Corp. is a telecommunications and internet giant based in Japan, part of the larger SoftBank Group, which was founded by Masayoshi Son in 1981. As of September 2023, SoftBank Corp. operates primarily in the mobile network sector and is a key player in the telecommunications industry. The ownership structure of SoftBank Corp. reflects a diverse array of stakeholders ranging from institutional investors to individual shareholders.

As of March 2023, the following table summarizes the prominent shareholders of SoftBank Corp. based on total ownership percentage:

SoftBank Group Corp., as the parent company, holds a dominating stake in SoftBank Corp. This strategic ownership allows it to influence major business decisions and operational strategies. The PIF has also played a crucial role in providing substantial capital, particularly in ventures like the Vision Fund, which has significantly impacted SoftBank’s investment capabilities.

In terms of stock performance, SoftBank Corp.'s shares have experienced fluctuations driven by broader market conditions and company-specific developments. The stock trades on the Tokyo Stock Exchange under the ticker symbol "9434." As of October 2023, the share price is approximately 1,500 JPY, with a market capitalization of around 5 trillion JPY.

SoftBank Corp. reported a revenue of approximately 4.8 trillion JPY for the fiscal year ending March 2023, showing an increase from the previous year, which was attributed to growth in mobile and broadband services.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) was reported at 1.3 trillion JPY, reflecting a robust operational performance despite competitive pressures in the telecommunications landscape.

Additional financial highlights as of the latest reporting include:

This ownership structure and financial performance position SoftBank Corp. as a pivotal player in Japan’s telecommunication sector, with strategic ties to global investment entities. The company's financial health, characterized by significant assets and moderate debt levels, continues to attract a diverse group of investors, reflecting confidence in its operational strategy and growth potential.

SoftBank Corp. Mission Statement

SoftBank Corp., a principal subsidiary of SoftBank Group Corp., aims to be a leading telecommunications and internet company that empowers individuals and businesses through technology. The mission statement encapsulates its commitment to innovation, with a focus on creating a positive societal impact.

As of the fiscal year ended March 31, 2023, SoftBank Corp. recorded revenues of approximately ¥4.65 trillion (around $42.5 billion), reflecting a year-over-year increase of 3.1%. The company’s operating income was reported at ¥852 billion (approximately $7.9 billion), marking a 5.2% growth from the previous year.

The company's mission is driven by a vision to accelerate the digital transformation of society. It emphasizes a commitment to enhancing communication, connectivity, and advancing societal well-being through technological innovation.

SoftBank Corp.'s mission also incorporates sustainable growth, aiming to invest in cutting-edge technologies such as artificial intelligence and 5G infrastructure. As of 2023, the company has invested over $93 billion globally in various tech ventures since the inception of the Vision Fund in 2017, illustrating its dedication to innovation-led development.

Furthermore, SoftBank's customer base has expanded significantly, with over 43 million mobile subscribers as of March 2023. The company reported a net gain of 1.2 million subscribers in FY 2023, demonstrating its commitment to enhancing telecommunications services in Japan.

Innovation and strategic partnerships are integral to SoftBank's mission. The company has formed collaborations with global technology leaders, facilitating ecosystem development that promotes technological advancement.

SoftBank Corp. continues to pursue its mission by driving the future of the telecommunications industry while balancing fiscal responsibility and societal value creation.

How SoftBank Corp. Works

SoftBank Corp., a subsidiary of the SoftBank Group, operates in the telecommunications sector and is one of Japan's largest mobile network operators. The company is publicly traded on the Tokyo Stock Exchange under the ticker symbol 9434.

As of the end of the fiscal year 2023, SoftBank Corp. reported a total revenue of approximately ¥4.39 trillion (about $39.7 billion), demonstrating a year-over-year growth of 5.4%.

Business Segments

SoftBank Corp.'s main business segments include mobile telecommunications, broadband services, and internet services. Each segment contributes to the overall financial performance and growth of the company.

Customer Base and Subscription Models

As of March 2023, SoftBank Corp. reported approximately 43 million mobile subscribers. The company’s customer base has grown steadily, driven by various subscription models, including postpaid and prepaid services.

• Postpaid Customers: Approximately 29 million
• Prepaid Customers: Approximately 14 million

The average revenue per user (ARPU) for postpaid customers stood at about ¥5,700 per month, while prepaid customers generated an ARPU of approximately ¥2,700 per month.

Technological Infrastructure

SoftBank Corp. is investing heavily in 5G technology to enhance its service offerings. As of September 2023, the company has rolled out 5G networks across over 98% of urban areas in Japan, with plans to cover rural regions by 2025.

Financial Performance Metrics

In the fiscal year 2023, SoftBank Corp. reported a net income of approximately ¥900 billion (around $8.1 billion), resulting in a net profit margin of 20.5%.

SoftBank Corp. maintains a diversified portfolio in its investment strategy, which includes stakes in various technology companies through the SoftBank Vision Fund. The Vision Fund has invested in over 100 startups with a combined valuation exceeding $200 billion.

Market Challenges and Competitive Landscape

Facing competition from rivals like NTT Docomo and KDDI, SoftBank Corp. is continually adapting its strategies. The company’s efforts include expanding its service offerings and enhancing customer service experiences.

Market analysts predict that the competitive landscape will intensify as 5G services become more mainstream, potentially impacting profitability margins. The focus will likely shift towards maintaining customer loyalty through innovative service plans and enhanced network reliability.

How SoftBank Corp. Makes Money

SoftBank Corp., a subsidiary of SoftBank Group Corp., is primarily engaged in telecommunications, internet services, and investment activities. The company leverages several key revenue streams to generate significant income.

Telecommunications Services

SoftBank Corp. provides mobile communications and broadband services. As of the fiscal year ending March 2023, the company's mobile communication business reported a revenue of approximately ¥4.78 trillion (around $36.6 billion), contributing significantly to its overall financial performance.

Internet Services

This segment includes e-commerce, media, and other digital services. Revenues from this sector reached approximately ¥1.2 trillion (around $9 billion) in 2023, with a steady growth trajectory due to increased online shopping and digital content consumption.

Investment Portfolio

SoftBank's investment strategy involves significant stakes in various tech companies globally. The Vision Fund, a cornerstone of its investment strategy, has invested heavily in companies such as Uber and DoorDash. As of September 2023, the Vision Fund reported assets under management (AUM) of approximately $100 billion. The fund garnered a realized gain of around $20 billion from exits and sales in the last fiscal year.

Advertising and Affiliate Services

SoftBank also engages in advertising and affiliate programs across its digital platforms, contributing an additional ¥600 billion (around $4.5 billion) in revenue for the fiscal year. The rapid growth in digital advertising is driven by increasing demand for online visibility and e-commerce.

Cloud Services and IoT

SoftBank has expanded its footprint in cloud services and Internet of Things (IoT) solutions, which is expected to generate over ¥300 billion (around $2.3 billion) in revenue by 2024. As enterprises shift toward digital transformation, SoftBank is strategically positioned to benefit from this trend.

Partnerships and Collaborations

Collaborative ventures, especially with global tech giants, allow SoftBank to leverage innovative technologies and services. Partnerships with companies like Alibaba and ARM Holdings have significantly enhanced its market reach and technological capabilities. The revenue generated from such collaborations amounted to approximately ¥500 billion (around $3.8 billion) in 2023.

In summary, SoftBank Corp. employs a multifaceted approach to revenue generation through its telecommunications services, internet offerings, substantial investment portfolio, state-of-the-art cloud services, and strategic partnerships, positioning itself as a significant player in the global tech landscape.