SoftBank profit slides amid fewer new subscribers

CEO Son is looking for a windfall from the IPO of Alibaba, in which SoftBank owns a stake

SoftBank CEO Masayoshi Son speaks at an earnings briefing in Tokyo on Friday.

SoftBank CEO Masayoshi Son speaks at an earnings briefing in Tokyo on Friday.

Japanese mobile carrier SoftBank saw its profit dwindle dramatically in the April to June quarter as customer growth slowed.

Japan's third-biggest mobile phone company logged a net profit of ¥77.57 billion (US$759 million) for the quarter, down 68 percent from ¥244 billion a year earlier.

It added 557,000 mobile subscribers during the period, compared to 810,000 a year earlier.

CEO Masayoshi Son said at an earnings presentation that the company's net profit slide and a 15.6 percent decrease in operating profit to ¥337 billion was because last year it raised its stake in Gungho Online Entertainment, maker of the wildly popular "Puzzle & Dragons" game, and consolidated other companies, which boosted its earnings.

SoftBank's results may change when Chinese e-commerce giant Alibaba, in which it has a 34.4 percent stake, conducts its IPO, expected in September.

Son maintained SoftBank's revenue target of ¥8 trillion for the year to March 31, up significantly from the ¥6.6 trillion the company reported for the year ended March 31.

That's despite the derailment this week of the company's growth plans for its U.S. mobile phone subsidiary Sprint.

Sprint has dropped its bid to acquire fourth-ranked T-Mobile USA amid resistance from regulators. Son declined to comment on the shift, only repeating that he believes having two large mobile players doesn't offer U.S. consumers enough choice.

Sprint has improved its network infrastructure, with better call, data and LTE accessibility, Son said, adding the company will now focus on reversing its loss of subscribers through network improvements while reducing costs.

He hailed new Sprint CEO Marcelo Claure, founder of wireless services firm Brightstar, as a "street fighter" who would help turn around the company.

"Sprint led by Marcelo is going to be quite interesting, and I have high expectations," Son said.

Join the Good Gear Guide newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags consumer electronicssmartphonesSoftbank

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

Tim Hornyak

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?