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Softbank 9m17 Profit Grows 20 Procent

By Rajiv MenonJapan
1 min read
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Japan’s SoftBank has reported a solid 20% increase in net profit for the nine  months ending in December to 1.01 trillion yen ($9.35 billion), partly as a result of cost cutting at US subsidiary Sprint.

Net sales for the first nine months of SoftBank’s financial year grew 3.5% to 6.58 trillion yen, with revenue increasing across all the company’s market segments.

Domestic telecoms revenue grew slightly to 2.406 trillion yen despite a 1.4% decrease in telecoms service revenue to 1.8 trillion yen.

Mobile service revenue fell 5% to 1.36 trillion yen, but broadband revenue improved 23.2% to 240.02 billion yen and fixed telecommunications revenue edged up 0.5% to 200.86 billion yen.

Smartphone net additions for the nine-month period grew to 1.13 million, with the operator’s total mobile customer base growing to just under 33 million, while churn fell slightly to 0.84%.

SoftBank’s FTTH subscriber base meanwhile reached 4.67 million, up from 3.14 million as of the end of 2016.

Net sales at Sprint increased 2.6% to 2.72 trillion yen, while the unit’s adjusted ebitda grew 19.1% to 938.8 trillion won on the back of cost reduction efforts that resulted in nearly $1 billion in savings. Net sales from Yahoo Japan increased from 630.8 billion yen to 651.5 billion yen.

Questions & Answers

Q.

What contributed to SoftBank's overall net profit increase for the nine-month period?

A.

SoftBank's net profit growth was partly due to cost-cutting measures implemented at its US subsidiary, Sprint. The company also experienced revenue increases across all its market segments during this period.

Q.

Which specific revenue streams saw a decline for SoftBank despite overall growth?

A.

Domestic telecoms service revenue decreased by 1.4%, totalling 1.8 trillion yen, and mobile service revenue fell by 5% to 1.36 trillion yen. However, other segments compensated for these declines.

Q.

How did Sprint's performance impact SoftBank's results?

A.

Sprint's net sales increased by 2.6% to 2.72 trillion yen. Its adjusted ebitda grew by 19.1% to 938.8 trillion won, driven by cost reduction efforts that saved nearly $1 billion.

Q.

Did SoftBank's customer base expand during the nine months?

A.

Yes, smartphone net additions reached 1.13 million, increasing the total mobile customer base to just under 33 million. The FTTH subscriber base also grew significantly to 4.67 million.

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