Japan's Softbank books record profit as Sprint deal unfolds

The company also denied a report it plans to scale back its acquisition of domestic carrier eAccess

Japan's Softbank, which announced a US$20 billion deal to acquire U.S. mobile operator Sprint Nextel earlier this month, said it booked a record operating profit in its fiscal first half.

Softbank said its sales in the April-September period edged up 3 percent from a year ago, and its operating profit was ¥402 billion (US$5 billion), its highest ever. Net profit was down 20 percent from last year because of one-time profit booked in the earlier period, without which it would have set a record.

President Masayoshi Son said the company is on track to reach its goal of a trillion yen in domestic operating profit in the next four years, and reiterated his confidence that Softbank's plan to purchase 70 percent of Sprint. The outspoken Son has faced questions in the Japanese press on whether his foray into the U.S. will succeed.

"Why America? Because of the amazing growth in the American mobile market," said President Masayoshi Son, speaking at an earnings news conference in Tokyo.

Son said his company squeezes more profit from its revenue than the U.S. companies it could soon be competing with, AT&T and Verizon. He added that Softbank's purchase of Sprint would accelerate that operator's pursuit of its two larger rivals.

The Softbank founder discussed Sprint's recovery in the U.S., discussing the company's financial recovery and steady increase in mobile contracts recently. He said the company would quickly put its cash injection from Softbank to work strengthening its network and core businesses.

He also stressed the similarity of the U.S. and Japanese markets, saying that together they account for 69 percent of LTE contracts worldwide.

For the current fiscal year through March, Softbank said it expects operating profit to exceed ¥700 billion, 4 percent higher than last period.

Softbank owns a broad portfolio of businesses in Japan, including fixed-line broadband and online properties such as Yahoo Japan. But its mobile business is by far its largest activity, bringing in two-thirds of its revenue and nearly 70 percent of profit.

Separately, Softbank also denied a report in the Sankei business newspaper that it would scale back its planned acquisition of local operator eAccess. The companies said earlier this month that Softbank would purchase its smaller rival for US$2 billion to help strengthen its strained mobile networks.

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationsprint nextelfinancial resultsmobileSoftbankMergers and acquisitions

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?