Sales up but profit down at eAccess

14 Nov 2012

The Japanese telecoms group eAccess, which is the subject of a takeover bid by larger rival Softbank, has reported revenues of JPY108.46 billion (USD1.36 billion) for the first six months of its financial year (ending 31 March 2013), up 12% from JPY96.59 billion a year before. An increase in operating costs, however, saw net income for the six-month period to 30 September fall 48% from JPY7.07 billion last year to JPY3.71 billion this year. The firm, which is ranked fourth in the Japanese cellular market behind NTT DoCoMo, KDDI and Softbank, continues to show growth in its customer base, with 4.26 million subscribers at the end of September, up from 3.57 million twelve months earlier. This included 520,000 4G Long Term Evolution (LTE) customers, with LTE services having been introduced in mid-March this year.

Softbank recently revealed that it intends to complete its takeover of eAccess by 1 January 2013, bringing forward the completion date from the end of February as was originally announced. The delisting of eAccess from the Tokyo Stock Exchange is now expected to take place on 26 December this year rather than 25 February 2013 as forecast in the original takeover schedule. Softbank first announced the all-stock deal at the start of October; eAccess is valued at around JPY180 billion.