Softbank reports falling profit in fiscal first quarter

1 Aug 2012

Japanese telco Softbank Corp said its net income for its fiscal first quarter ended 30 June 2012 slipped 4.4% year-on-year to JPY90.66 billion (USD1.16 billion), from JPY94.79 billion in the same period a year ago. Operating profits climbed 9.3% in the same period to JPY192.12 billion from JPY175.83 billion, and revenue increased to JPY766.90 billion from JPY764.24 billion. EBITDA grew 11.9% y-o-y to JPY284.4 billion.

Despite reporting weak profitability in Q1, the fixed and mobile carrier said overall earnings remained solid, adding that it is narrowing the gap to nearest rival KDDI Corp in terms of smartphone subscriber numbers. Total sales of mobile services fell 1.5% to JPY506.21 billion in the period under review, but nonetheless Softbank Mobile added 753,100 net new users to close out June with 29.70 million mobile customers. Here, the cellular arm reported strong demand for all smartphones, in particular iPhones and Android-based handsets. It also noted a sharp drop in subscriber acquisition costs in the quarter, which fell by JPY9,700 to JPY26,500.

Softbank’s broadband unit booked revenue of JPY41.36 billion in the fiscal first-quarter, down 6% y-o-y, which it attributed to lower ARPU returns. The operator had 4.24 million Yahoo! BB subscribers as at 30 June 2012, up by 29,000, although ADSL subscribers – as a proportion of the total – declined by 134,000 to 2.47 million. The fall in DSL connections was offset however, by 163,000 net gains of its BB Hikari and FLETs fibre services to 1.77 million. Fixed line revenues rose 5.7% y-o-y to JPY92.44 billion, buoyed by strong demand for solutions services for corporate customers such as data centre services.

Japan, SoftBank Corp, SoftBank Group Corp