SoftBank Corp first-quarter net income up 4% on subscriber gains

5 Aug 2019

Japan’s SoftBank Corp reported revenue of JPY1.165 trillion (USD10.9 billion) for its fiscal first quarter ended 30 June 2019, up 5.8% year-on-year, as operating profit rose 3.7% – in line with market estimates – to JPY268.858 billion and net income attributable to shareholders improved 2.1% to JPY164.797 billion, due to a decrease in net income attributable to non-controlling interests. Broken down by business unit, SoftBank Corp said that the revenue contribution of its Consumer segment increased by JPY22.765 billion y-o-y, JPY6.682 billion in the Enterprise segment, JPY24.169 billion in the Distribution segment, and JPY7.534 billion in the Yahoo segment. Consolidated (adjusted) EBITDA, meanwhile, surged 12.9% to JPY434.266 billion in April-June 2019, compared to JPY384.791 billion in the year-ago quarter, mainly reflecting an increase of JPY35.238 billion for depreciation and amortisation and interest expenses incurred due to the adoption of IFRS 16 for the three months under review.

Operationally, SoftBank Corp closed out June with a total of 35.010 million ‘Main subscribers’ (up a net 269,000 y-o-y), including 22.453 million ‘Smartphones’ (up 372,000), 7.777 million ‘Communication modules and others’ (up 39,000) and 1.985 million ‘PHS’ subscriptions (down 71,000). In the fixed line arena, the telco reported a total of 7.704 million fixed broadband connections at end-June 2019, up from 7.643 million y-o-y, of which 6.050 million are ‘SoftBank Hikari’, 861,000 are ‘Yahoo! BB Hikari with FLET’s’ and 794,000 are ‘Yahoo! BB ADSL’.

Japan, SoftBank Corp