Softbank Corp reports 30% rise in full year revenues; net income rises to JPY668bn

15 May 2015

Multinational telecommunications and internet group SoftBank Corp has reported a 30.1% year-on-year increase in net revenues to JPY8.670 trillion (USD72.76 billion) for its financial year to 31 March 2015, up from JPY6.667 trillion in the prior year, primarily the result of increased sales in the Mobile Communications segment and Sprint in the United States. Mobile turnover rose 31.9% y-o-y to JPY4.143 trillion, it said, and net sales at Sprint increased 38.2% to JPY3.594 trillion – the unit’s first full year of consolidation within Softbank’s figures. Operating income of JPY982.7 billion was 8.8% lower than the JPY1.077 trillion figure booked in full-year 2013/14, which reflected the absence of a JPY253.8 billion ‘gain from re-measurement relating to business combination’ (i.e. concerning WILLCOM and GungHo) reported in the prior fiscal year. Meanwhile, net income (attributable to shareholders) climbed 28.5% to JPY668.4 billion, it said.

The Japanese operator, which offers a range of mobile, broadband, fixed line telecommunications, e-commerce and other businesses, said its Softbank Mobile division closed out March 2015 with a total of 37.766 million subscribers, thanks to net gains of 1.841 million in the year. ARPU however, declined by JPY220 y-o-y to a monthly average of JPY4.230 – as a result of it signing up an increased number of lower ARPU devices. In the US Softbank said that the Sprint ‘platform’ reported 2.586 million net subscriber additions in the twelve months under review – representing the net addition of 2.349 million wholesale and affiliate connections, 449,000 pre-paid net gains and a loss of 212,000 post-paid mobile users – for a cumulative total of 56.137 million at the year end.

The group’s fixed line unit said that sales decreased by 1.3% y-o-y to JPY541.1 billion, mainly due to a decline in ADSL service revenue and a decrease in net sales at SoftBank Telecom. Softbank Corp said it had 1.618 million Yahoo! BB ADSL subscribers at end-March 2015, down from 1.846 million one year earlier, although Yahoo! BB Hikari with FLETS (fibre) subscribers increased to 2.724 million from 2.504 million. The cumulative number of OTOKU fixed line subscribers was 1.707 million (down 3,000 y-o-y).