Softbank: mobile unit drives surge in profits in FY2006-07

8 May 2007

Japanese communications services provider Softbank Corp reported a 129.5% rise in revenues in the year to 31 March 2007, and said that annual profit more than quadrupled thanks to the acquisition of Vodafone KK (now Softbank Mobile) in April 2006, and its efforts to cut costs and lure new subscribers with cheaper price plans. Softbank posted an operating profit of JPY271.07 billion (USD2.26 billion) in the year ended 31 March 2007, up from JPY62.3 billion a year earlier, eclipsing market expectations of JPY263.1 billion based on the forecasts of 13 analysts polled by Reuters Estimates. The operator reported that earnings before income, tax, depreciation and amortisation (EBITDA) surged to a record JPY525.4 billion from JPY149.9 billion previously, although net profit slipped 50% to JPY28.8 billion, largely the result of higher taxes and declines in extraordinary income. Revenues more than doubled from JPY1.11 trillion to JPY2.54 trillion.

Softbank does not provide earnings forecasts, but is expected to report an operating profit of JPY316.9 billion for the year to end-March 2008.

Japan, SoftBank Group Corp