SoftBank Corp., a telecommunication services provider, which also operates ADSL and fiber optic high-speed Internet connection, e-Commerce businesses and Internet based advertising and auction businesses, announced that its third-quarter profit topped analysts estimates as the release of Apple Inc.s new iPhone series contributed to the addition of 2.3 million new subscribers.
SoftBank Corp. revealed in an official statement that its net income was 93.3 billion yen (910 million dollars) in the three months that ended December 31st. According to data compiled by Bloomberg, the average of three analysts estimates was 39 billion yen. The companys net income decreased by 1% from a year earlier after Sprint Corp., which SoftBank acquired in a 22-billion-dollar deal in 2013, posted losses. Yesterday SoftBank Corp. announced a net loss for the three months through December that amounted to 1.04 billion dollars.
The latest iPhones were used by SoftBank in order to increase the number of domestic subscribers to almost 35 million. The company was also in a process of upgrading its network in the U.S. in order to prevent losses at subsidiary Sprint Corp., which is the third largest carrier. SoftBanks Chairman Mr. Masayoshi Son is said to have been taken into consideration a deal to unite Sprint Corp. and T-Mobile U.S. Inc.
The Chief Executive Officer of Myoto Asset Management Co. – Makoto Kikuchi said for Bloomberg: “The result shows their domestic business is going well. If overseas business adds to profit, that will be a tailwind to a good domestic business and accelerate profit growth.”
Chairman Sons plan to unite Sprint and T-Mobile carries both financial and regulatory risks. SoftBank Corp. said that its intention is to spend 16 billion dollars over two years of improving its network in the U.S. while making effort to close the gap between its results and the ones of the current market leaders – Verizon Wireless and AT&T Inc.
The Chairman of SoftBank said in todays company statement, which was cited by Bloomberg: “Without industry consolidation, for Sprint alone to become No. 1 in the U.S. is literally just a dream. I’m not content for Sprint to remain No. 3 because if we could grow bigger, we will offer aggressive discounts and services, just like we did in Japan.”
Mr. Son refused to make any comments on the situation with T-Mobile or on the talks with the U.S. regulators.
SoftBank Corp.s shares settled 0.19% lower in Tokyo on Wednesday at 7 782 JPY before the earnings report was released. The stock has fallen 15% this year.
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