Japanese fixed and mobile operator SoftBank Corp today (4 August) posted its financial results for the fiscal first quarter ended 30 June 2020, reporting a 0.7% rise in revenues to JPY1.2 trillion (USD11.3 billion) from JPY1.165 trillion a year ago, as operating income rose 4.1% to JPY279.9 billion – beating analyst estimates in a poll compiled by Refinitiv. The company noted that falls in revenue from its Consumer and Distribution segments were offset by increases in the Enterprise and Yahoo segments. Meanwhile, pre-tax profit and net income (attributable to the owners of the company) both fell, by 0.8% and 7.7%, to JPY257.4 billion and JPY152.1 billion, respectively. SoftBank attributed the fall in operating income to ‘a decrease in gain on sales of equity method investments of JPY5.5 billion, and an increase of JPY3.6 billion in share of losses of associates accounted for using the equity method, while there was an increase in operating income.’ For the three months under review, adjusted EBITDA increased by 4.4% year-on-year to JPY453.2 billion, mainly reflecting the increase in operating income. The carrier believes ‘that adjusted EBITDA, which excludes the impact of non-cash transactions, is a useful and necessary indicator for evaluation of its business performance’.
At 30 June 2020, SoftBank Corp reported that Mobile Communications Services had a total of 46.131 million subscribers, up a net 353,000 in three months. In the fixed line segment, it had a total of 7.988 million customers, up a net 143,000 quarter-on-quarter, including 6.603 million SoftBank Hikari users, 761,000 Yahoo! BB Hikari with FLET’S accounts and 624,000 Yahoo! BB ADSL customers.
In its filing, SoftBank noted: ‘The environment surrounding the world is undergoing a major transformation due to advances in digital technology. With the rapid penetration of AI, IoT and utilisation of big data and the digitalisation of all aspects of people’s lives and businesses, digital transformation that changes the structure of the industry itself is occurring. In addition, the commercialisation of the next generation telecommunications standard 5G (fifth-generation mobile communications system), which has the advantages of ultra-high speed, large capacity, low latency, and massive machine connections, is expected to accelerate this change.’