Japan’s SoftBank reported a sharp jump in its net profit for fiscal Q2 ending 30 September thanks to one-off gains, while its internet business in Japan grew rapidly and US subsidiary Sprint posted improved results.

Its net profit in the July-September period more than doubled to JPY529 billion ($5.18 billion), and its operating profit increased 7 per cent to JPY335 billion. The sharp profit increase was due largely to the sale of its 84 per cent stake in Supercell, maker of ‘Clash of Clans’, to an affiliate of Tencent for $8.6 million.

It also booked gains from selling part of its stake in Alibaba and recorded an acquisition-related cost of JPY23.4 billion for its purchase of ARM Holdings.

Its total revenue during the quarter fell 3 per cent to JPY2.15 trillion, with mobile sales in Japan slipping on heavy discounts and modest growth at US-based Sprint reversed by the appreciation on the yen.

SoftBank has been aggressively expanding over the past few months with its windfall from the Supercell sale, completing a $32 billion deal in September to acquire UK chip designer ARM and last month announcing plans to set up a $100 billion tech fund with Saudi Arabia’s Public Investment Fund and other investors.

Domestic strength
SoftBank’s H1 revenue in Japan rose 3.1 per cent to JPY155 trillion, but mobile revenue fell 1.4 per cent to JPY958 billion, which the company said was due to an increase in discounts associated with growth in uptake of its Hikari home bundle packages and a decrease in PHS subscribers.

A 5.6 per cent increase in equipment sales to JPY339 billion and a 56 per cent jump in broadband revenue to JPY124 billion helped offset declines in mobile and fixed-line turnover.

SoftBank added nearly 700,000 subscribers over the past year to take its total to 32.3 million. Total ARPU fell 3 per cent year-on-year to JPY4,570 ($44.80).

Positive signs
US operator Sprint, which has been a burden on SoftBank’s bottom-line since it was acquired in 2013, reported a narrower loss last month, as its H1 revenue increased to $16.3 billion from $16 billion a year ago.

It added nearly 340,000 postpaid subscribers in the last quarter, but postpaid ARPU declined 3.7 per cent to $58. Its overall subscriber base increased by 1.4 million to 60.2 million over the past year.

SoftBank today also announced it has set up an investment planning department and named Kentaro Matsui as the GM of the new unit.