SoftBank Group’s Japanese telecom business recorded revenue increases across all business units in its fiscal third quarter 2019 (calendar Q4), with consumer mobile services growing steadily on the back of strong subscriber gains and rising tariffs.
Net profit attributed to shareholders of SoftBank Corp inched up marginally year-on-year to JPY109 billion ($992.6 million). The company said the figure was impacted by higher corporate tax related to the intergroup transfer of Z Holdings shares as part of an agreement to merge the subsidiary and Line.
Revenue increased 2.4 per cent to JPY1.24 trillion, driven by a 4.3 per cent rise in mobile services to JPY426 billion. The company said the figure was due to rising smartphone adoption and a decrease in monthly discounts, in line with an increase in subscribers on unbundled plans along with longer contract periods.
Ken Miyauchi, SoftBank Corp CEO and president, said all business segments posted increases in revenue and operating income.
Sales of goods dropped 19.3 per cent to JPY177 billion due to declining mobile device volumes and and lower prices. Revenue at its Yahoo unit grew 12.7 per cent to JPY276 billion, while its enterprise business posted 1.7 per cent growth to JPY157 billion.
The operator ended the period with 45.2 million subscribers, 1.46 million more than at end fiscal Q3 2018. ARPU increased 1.4 per cent to JPY4,440.
Miyauchi said it revised its consolidated forecast for its fiscal year ending 31 March. Operating income is expected to grow 10 per cent to JPY900 billion, up JPY10 billion from its previous forecast, and the revenue target was raised by JPY20 billion to JPY4.82 trillion.
Parent company SoftBank Group reports fiscal Q3 earnings on 12 February.Subscribe to our daily newsletter Back