News
Japanese operator reports slight decline in revenue due to forex impact, device distribution business.
Softbank on Wednesday reported a 76.9% year-on-year increase in net profit for the nine months to 31 December, but revenue fell on foreign exchange movements and a slump in sales at its device distribution segment.
Net income came in at ¥903.93 billion, compared to ¥511.10 billion in the corresponding period of 2015. The huge increase was driven by the sale of Japan-based Softbank’s stake in mobile games maker Supercell to an affiliate of China’s Tencent at the end of July 2016. Net income from continuing operations was down 24.1% year-on-year to ¥350.63 billion, due to higher income taxes.
Revenue at Softbank inched down 0.3% to ¥6.58 trillion, as foreign exchange rate changes and falling revenue at its distribution business offset growth at its domestic operation, Yahoo Japan, and recently-acquired chip designer ARM.
Operating income jumped 18% to ¥949.66 billion, due to improved profitability at the domestic business, the distribution unit, ARM, and its U.S. division Sprint, which offset a decline at Yahoo Japan.
Softbank’s Japanese operation ended 2016 with 32.23 million mobile customers, up from 31.69 million at the end of 2015. Its fixed broadband customer base increased to 5.86 million from 4.85 million.
On the financial side, nine-month revenue ticked up 2.5% to ¥2.4 trillion, while service revenue grew 2% to ¥1.83 trillion. Adjusted EBITDA was up 6.9% to ¥994.69 billion.
Over the same period, Sprint generated revenue of $24.81 billion, up 2.9% compared to the first nine months of 2015. However, when converted into yen, revenue was down 9.4% to ¥2.65 trillion. Adjusted EBITDA in dollar terms grew 20.1% to $7.37 billion; in yen terms, it was up 5.8% to ¥787.72 billion.
Sprint ended last year with 59.52 million mobile subscribers, up from 58.36 million at the end of 2015.
Meanwhile, ARM – the U.K.-based chip designer that Softbank acquired last year – contributed revenue of ¥68.86 billion, and adjusted EBITDA of ¥38.11 billion.
