SoftBank Corp revised its outlook for the year to 31 March, after a better-than-expected performance in its fiscal Q3 driven by its enterprise and commerce sectors.
In a briefing, the Japanese operator also highlighted strong growth in mobile subscribers during the quarter (to end-December 2021). Outgoing president and CEO Ken Miyauchi (pictured) explained its non-telecom businesses had “become our growth drivers”, citing enterprise and Yahoo Japan’s commerce offering.
Miyauchi added demand for cloud, IoT and security services bolstered the enterprise segment, and warned consumer growth is expected to slow in its next fiscal year, on greater competition and government-mandated cuts to mobile pricing.
The operator made steady progress on 5G initiatives in the recent quarter, Miyauchi said without revealing user numbers.
Net profit in fiscal Q3 increased 8.7 per cent year-on-year to JY118.7 billion ($1.1 billion) and revenue grew 10.7 per cent to JPY1.378 trillion.
Consumer service revenue grew 1.9 per cent to JPY550 billion. A 1.5 per cent dip in mobile service turnover to JPY420.2 billion was offset by 20.5 per cent growth in equipment sales to JPY193 billion.
Mobile subscribers rose up 4.4 per cent to 37.5 million, with ARPU falling 3.2 per cent to JPY4,300, after discounts.
Enterprise revenue increased 10.5 per cent to JPY173 billion and Yahoo Japan sales grew 14.9 per cent to JPY316.6 billion.
The company bumped up its full-year net income target by JPY5 billion to JPY490 billion and increased its revenue outlook 4.1 per cent to JPY5.1 trillion.
Miyauchi said it earmarked JPY2.2 trillion for 5G capex over the next ten years and believes it can outspend Rakuten Mobile to deliver better coverage and attract more premium users.
SoftBank Corp aims to deploy 10,000 5G base stations by end-March and take population coverage to more than 90 per cent with a total of 50,000 sites by the same point in 2022.Subscribe to our daily newsletter Back