Softbank's 1Q Net Profit Surges 5-Fold On Strong iPhone Demand

 Softbank's 1Q net profit surges nearly five-fold to a record high

-- Softbank CEO says the company is on track to achieve on-year increase in both sales and profits

-- Softbank CEO says impact of its renewable energy business on earnings will be minimal

 
   By Juro Osawa and Kana Inagaki 
   OF DOW JONES NEWSWIRES 
 

TOKYO (Dow Jones)--Softbank Corp. (9984.TO) said Thursday that its net profit for the three months through June surged nearly five-fold as Japan's only carrier of Apple Inc.'s (AAPL) iPhone and iPad continued to enjoy solid revenue and a growing subscriber base even as rivals expanded their smartphone lineups.

Japan's third largest mobile carrier by subscriber numbers recorded a net profit of Y94.79 billion for the fiscal first quarter from April to June, up sharply from Y19.44 billion in the same period a year earlier.

"The solid growth in average per-user revenue and subscribers are behind our stable profits. I believe this trend will continue for some time," Chief Executive Masayoshi Son said at a press conference.

The popularity of Apple devices in Japan continued to underpin earnings at Softbank, whose business also includes Internet services. The iPhone and iPad have helped the carrier win new customers and generate more revenue from data transmission.

"The iPhone's strength is standing out the more people come to use smartphones," Son said.

Operating profit for the quarter rose 12% to Y175.83 billion from Y156.60 billion a year earlier, while revenue rose 9% to Y764.24 billion from Y700.84 billion.

The mobile phone and Internet service firm said its average per-user revenue for the April-June quarter declined to Y4,210 from Y4,290 a year earlier, but its data ARPU increased to Y2,440 from Y2,250, helped by iPhone users who generate more revenue from data traffic.

Rival KDDI Corp. (9433.TO), Japan's second biggest carrier, reported earlier this week that its April-June average per-user revenue declined 10% to Y4,640 from Y5,160 a year earlier.

As in the past, Softbank did not provide a full-year outlook, but Son said he is confident both sales and profits will mark an on-year increase. The company said there is also no change to its capital spending plans for the next two years.

He added the company's recent involvement in renewable energy business will not affect its finances and will have only a minor impact on its earnings.

Softbank reports earnings under Japanese accounting standards. More