Softbank’s profit down to JPY111bn in Q1 FY2014

8 Aug 2014

Japanese telecoms giant Softbank Corp has published its financial results for the three months ended 30 June 2014 (Q1 FY2014), reporting a 126.1% year-on-year increase in net sales to JPY1.992 trillion (USD19.62 billion), up from JPY881.069 billion reported in the corresponding period of FY2014; the development was mainly attributed to the consolidation of US subsidiary Sprint (2Q13), WILLCOM and Supercell (3Q13), and Brightstar Corp (4Q13). The company reported operating income of JPY337.632 billion in fiscal 1Q14, down by 15.6% y-o-y from JPY400.121 billion, mainly due to ‘absence of gain from re-measurement relating to business combination of JPY150.120 billion recorded in the same period of the previous fiscal year, although income was recorded in conjunction with the consolidation of Sprint and Supercell’. As a result, net income slumped by 58.7% to JPY111.308 billion in the period under review. Meanwhile, the group’s EBITDA increased to JPY592.058 billion by end-June 2014, up by 67.1% y-o-y from JPY354.272 billion in 1Q13.

In operational terms, Softbank reported that its Mobile division had a customer base of 36.482 million at end-June 2014, up by 9.6% from 33.290 million subscribers reported on 30 June 2013; further, Softbank Mobile sold a total of 1.769 million handsets in the three-month period. Ymobile Corporation (previously eAccess) passed the ten million subscriber milestone in April-June, while Sprint reported a total of 54.553 million users at end-June 2014, up from 53.588 million a year earlier.