Japan-based SoftBank Corp blamed a drop in profit and mobile service revenue on the introduction of lower tariffs and an increase in customers switching to lower-cost sub-brands Yahoo Mobile and Line Mobile.
In a statement, the operator forecast the impact of the price cuts to peak in fiscal 2022 and diminish over the next three years.
Net profit in in fiscal Q1 2022 (ending 30 June) fell 14.9 per cent year-on-year to JPY128.5 billion ($965.2 million).
Total revenue was flat at JPY1.4 trillion, as a 5 per cent increase in sales at Yahoo Japan and Line to JPY390.6 billion offset a 4.3 per cent drop in mobile service revenue to JPY390.4 billion.
ARPU was down 6.9 per cent to JPY3,910.
Equipment sales fell 31.8 per cent to JPY120.5 billion.
Its mobile subscriber base was mostly unchanged at 38.7 million.
Revenue from its enterprise division rose 3 per cent to JPY176.6 billion, driven by a 12 per cent increase in Business Solution sales covering cloud, security and IoT.
The company maintained its full-year profit guidance at 2.4 per cent growth to JPY530 billion and 3.7 per cent revenue gain to JPY5.9 trillion.Subscribe to our daily newsletter Back