SoftBank Corp sees rise in revenue, but net income slips in Q1

4 Aug 2021

Japanese fixed and mobile operator SoftBank Corp today (4 August) posted its financial results for the fiscal first quarter ended 30 June 2021, reporting a 15.7% rise in revenue to JPY1.357 trillion (USD12.4 billion) from JPY1.173 trillion a year ago, as operating income rose 1.1% to JPY283.099 billion – despite a JPY4.9 billion fall in turnover derived from the company’s Consumer segment – and pre-tax profit improved by 5.9% to JPY272.462 billion from JPY257.362 billion in the year-ago quarter. However, net income (attributable to the owners of the company) fell by 0.8% to JPY150.964 billion from JPY152.139 billion. In its financial report though, SoftBank Corp noted that although net profit had fallen ‘net income attributable to non-controlling interests increased by JPY2.5 billion (15.4%) year-on-year to JPY18.4 billion, mainly due to the effect of a decrease in the share of voting rights of Z Holdings in connection with the business integration of Z Holdings and LINE Corporation’. Further, for the three months under review adjusted EBITDA increased by 16.2% y-o-y to JPY470.0 billion from JPY453.2 billion, mainly reflecting ‘the increase in depreciation and amortisation mainly due to amortisation of intangible assets recognised in connection with the consolidation of LINE Corporation, and the increase in stock compensation expenses in relation to stock options issued by Z Holdings’.

At 30 June 2021 SoftBank Corp reported that Mobile Communications Services had a total of 47.655 million subscribers, up a net 371,000 in three months and compared to a total of 46.131 million subscribers at end-June 2020. In the fixed line segment, the company had a total of 8.182 million broadband subscribers, up a net 43,000 quarter-on-quarter, and compared to 7.988 million customers at 30 June 2020. Broken down, SoftBank reported 7.030 million SoftBank Hikari users, 670,000 Yahoo! BB Hikari with FLET’S accounts and 482,000 Yahoo! BB ADSL customers, compared to figures of 6.603 million, 761,000 and 624,000 a year ago.

In an unrelated development, Juniper Networks has announced that it has joined the SoftBank 5G Consortium established by SoftBank Corp as a founding member, having been named as a 5G-related partner. In a press release, the vendor said: ‘As long-time partners, Juniper Networks and SoftBank have journeyed and grown together over the years into the 5G era. In particular, Juniper’s automated and secure IP networking solutions, including its flagship MX Series Universal Routing Platforms, play a crucial role in the development of SoftBank’s 5G infrastructure. This solution offers strong scalability, reliability and flexibility, which are all key to SoftBank’s 5G networking demands and requirements such as Network Slicing with SRv6.’

Japan, Juniper Networks, SoftBank Corp