Benzinga | Aug 4, 2021 09:05AM EDT

Uber Backer SoftBank Clocks 16% Revenue Growth In Q1, Issues Strong FY21 Outlook

* The backer of top tech companies like Uber (NYSE:UBER), SoftBank Group Corp (OTC:SFTBY) reported the first-quarter FY21 revenue growth of 15.7% to ?1.36 trillion year-on-year.

* Consumer segment revenue climbed 11% Y/Y. The profits were affected by the decrease due to mobile service price reduction.

* Enterprise segment revenue rose 6% Y/Y. Mobile and Business solutions and others continued to perform strongly.

* Yahoo! JAPAN/LINE segment revenue expanded 36% Y/Y. The revenue increased mainly due to the business integration of Z Holdings Corporation and LINE Corporation in Mar.

* PayPay's cumulative registered users exceeded 40 million. The Gross merchandise value (GMV) increased 1.7x Y/Y.

* Operating income increased 1.1% Y/Y to ?283.1 billion. Enterprise segment income rose 23% Y/Y, outweighing the income declinefor the Consumer segment.

* Adjusted EBITDA improved 3.6% Y/Y to ?470 billion, but the net income declined 0.8% Y/Y to ?169.4 billion.

* Softbank generated ?181.4 billion in operating cash flow and held ?1.7 trillion in cash and equivalents.

* SoftBank had reportedly sold 45 million shares in Uber in July.

* Outlook: SoftBank sees FY21 revenue of ?5.5 trillion implying 25% growth Y/Y, operating income of ?975 billion up 29% Y/Y, and net income of ?500 billion up 30% Y/Y.

* Price action: SFTBY shares closed lower by 2.01% at $31.14 on Tuesday.