SoftBank's net profit more than doubles as number of mobile subscribers soars

The company also benefited from consolidating two companies into its results as subsidiaries

SoftBank's net sales increased by over 21 percent in the second quarter as the company saw handset sales and subscriber numbers increase.

The Japanese company reported Tuesday that net profit was ¥263 billion (US$2.7 billion) in the quarter, up 122 percent from the same quarter a year earlier. The company had net sales of ¥881 billion in the quarter.

SoftBank adopted International Financial Reporting Standards (IFRS) from the second quarter, prompting it to consolidate the results of gaming company GungHo Online Entertainment and mobile communications service provider eAccess, in which it holds significant stakes.

The company's domestic mobile communications business, which provides mobile communications services and sells mobile handsets, saw sales increase by 26.8 percent year on year to ¥662 billion.

SoftBank added 810,000 subscribers in its mobile business in the quarter, attracted by sales promotions or by the opportunity to buy Apple's iPhone or specialized devices including the Mimamori phone, which is a handset with a security buzzer, or PhotoVision, a digital photo frame with telecommunications functionality. The company had over 33 million mobile subscribers at the end of the quarter.

The company's Internet business also saw net sales up 18.9 percent year on year to ¥96 billion, with much of the growth coming from sponsored-search advertising. In fixed-line telecommunications, the third business for which SoftBank breaks out sales figures, net sales increased by 4.3 percent year on year to ¥133 billion, mainly as a result of making eAccess a subsidiary.

SoftBank has forecast at least ¥1 trillion in operating income under IFRS in the current fiscal year ending March 31, 2014.

Earlier this month, SoftBank completed its acquisition of a 78 percent stake in U.S. operator Sprint for US$21.6 billion.

Sprint reported a second-quarter net loss of $1.6 billion on Tuesday, weighed down by the cost of shutting its Nextel wireless network. Revenue, at $8.8 billion, was almost flat in comparison to the same quarter last year. The company dropped "Nextel" from its corporate name just a few days after shutting down the network it acquired through its 2005 purchase of Nextel.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetbusiness issuestelecommunicationfinancial resultsSoftbankInternet service providers

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Bitdefender 2019

This Holiday Season, protect yourself and your loved ones with the best. Buy now for Holiday Savings!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?