UPDATE: Softbank 2Q Net Profit Nearly Doubles; Hikes Capex
29 Ottobre 2009 - 11:03AM
Dow Jones News
Softbank Corp. (9984.TO) said Thursday its net profit for the
July-September quarter nearly doubled from a year earlier, thanks
mainly to the popularity of the iPhone, which helped eliminate
cumulative losses carried for the past seven years.
The telecom and network services company and provider of Apple
Inc.'s iPhone in Japan also raised its capital spending projection
to Y260 billion from a previously forecast Y220 billion for this
fiscal year through March to increase data capacity for increased
traffic.
"Because the shipment of the iPhone is extremely strong, data
traffic increased accordingly," said President Masayoshi Son. He
added that the company plans to make bigger capital investments
next fiscal year.
Son didn't disclose shipment volume of the iPhone, but said it
has "more than doubled since last year."
Net profit for the quarter rose to Y43.37 billion from Y21.75
billion in the same period a year earlier. Softbank said its
overall handset sales increased during the quarter, even though the
domestic mobile phone market is saturated.
The result surpassed the Y30 billion mean estimate in a survey
of 14 analysts by Thomson Reuters.
"In order to retain subscribers' satisfaction level, it makes
sense that the company is investing in data capacity expansion,"
said Yuusuke Tsunoda, analyst at Tokai Tokyo Research Center. "Its
profit growth is impressive."
Due to aggressive investment in its ADSL business, Softbank's
cumulative losses started weighing on the bottom line from the
fiscal year ended March 2003, peaking at Y273 billion in the fiscal
year ended March 2005. Retained earnings turned positive for the
first time in seven years as of Sept. 30, posting Y17.16 billion,
compared with a loss of Y51.27 billion a year earlier.
Operating profit for the three months rose 29% to Y122.33
billion from Y94.91 billion on revenue of Y682.94 billion, up from
Y681.74 billion a year ago.
Average revenue per user for its mobile phone services fell to
Y4,150 per month in the quarter, from Y4,170 a year earlier. The
net increase in subscribers was 360,700 from 521,400.
For the fiscal year ending March 2010, Softbank continues to
expect an operating profit of Y420 billion, up 16.9% on year from
Y359.12 billion.
"I am very confident that we are likely to meet the forecast,"
Son said.
The company didn't issue a net profit outlook for the full
fiscal year.
Its earnings are based on Japanese accounting standards.
-By Ayai Tomisawa, Dow Jones Newswires, 813-6895-7568,
ayai.tomisawa@dowjones.com