Japanese telecommunications and internet corporation Softbank Group has reported consolidated net sales of JPY3.4 trillion (USD34.68 billion) in its fiscal year ending 31 March 2013 (FY2012/13), a 5.5 % increase on the JPY175.9 billion reported in the previous year. The company saw a JPY69.7 billion (10.3%) surge in operating income to JPY745.0 billion. Net income, however, dropped to JPY289.4 billion, a 7.8% dive in comparison with JPY313.8 billion reported in FY2011/12. Softbank’s mobile communications arm reported that net sales increased by JPY132.6 billion year-on-year to JPY2.28 trillion due to an rise in telecom service revenue attributed to steady growth in the number of mobile phone subscribers. Operating expenses in FY2012/13 also increased by 5.5% year-on-year to JPY1.81 trillion, caused by higher depreciation and amortisation charges related to the installation of additional base stations. The company also profited by net subscriber additions of 3.53 million in the period, with cumulative number of subscribers reaching 32.48 million by 31 March 2013.
According to TeleGeography’s GlobalComms Database, Softbank Corp announced in October 2012 that it had agreed a deal to buy a 70% stake in Sprint Nextel, the third-biggest US mobile company, for USD20.1 billion, in a bid to diversify away from its stagnating domestic telecoms market. However, Softbank is facing a higher counter-offer from American satellite-television provider DISH Network, which has launched an unsolicited USD25.5 billion bid.