Softbank’s Q1 profit up 8% on reduced subsidies; plans to cut iPhone fees

5 Aug 2008

Japan’s third biggest mobile operator by subscribers, Softbank Mobile, which is part of Softbank Corp, today reported an 8% year-on-year rise in first-quarter profit for the three months ended 30 June, aided by a reduction in handset subsidies and strong subscriber growth. Softbank Mobile, which is beating larger rivals NTT DoCoMo and KDDI in terms of monthly net new subscriber gains, is now looking to cut contract fees for people taking the Apple iPhone in an attempt to attract even more users. The cuts, which will come off data fees, will mean Softbank’s iPhone customers will pay as little as JPY2,990 per month to use the device, down from JPY7,280 now. The operator posted operating profit of JPY85.1 billion (USD786.5 million) in its fiscal first quarter, compared with JPY78.7 billion a year ago. The company said the strong performance was also helped by a drop in subscriber churn in the period.

Japan, SoftBank Corp