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Softbank Profit rockt

Startbeitrag von Hama am 08.11.2006 18:18

Softbank returns to profit as cellphone cash pours in

Thursday November 9, 2006, 3:43 am


TOKYO (AFP) - Japan\'s Softbank Corp said it returned to profit in the first half to September as cash poured in from its mega purchase of Vodafone\'s local mobile phone operations.

The firm also breathed a sigh of relief as it increased its number of mobile phone customers, rather than a much-expected decrease.

Softbank reported a net profit of 14.44 billion yen (123.33 million dollars) for the six month period, compared with a loss of 4.18 billion yen a year earlier.

Operating profit rocketed to a record 112.55 billion yen from 4.4 billion a year earlier as the cellphone business contributed 56.64 billion yen.

Revenue more than doubled to 1.12 trillion yen.


"We are happy to see our numbers rising year-on-year across the board," said president Masayoshi Son.

"Higher profits more than offset the effects of the increased cost of investment for the mobile phone business," said Son, an aggressive entrepreneur who built the firm into an Internet powerhouse in Japan.

In April, the company completed a deal to buy British giant Vodafone\'s struggling local unit for 15 billion dollars. It has rebranded it "Softbank Mobile" and announced aggressive discounts to try to win new customers.

Analysts had predicted a number of Vodafone customers would leave for rival carriers after Japan began on October 24 "the number portability system," which allows mobile phone customers to switch carriers while keeping their phone numbers.

Softbank was hit hard after the new system started due to a massive technical glitch of its own system as well as criticism that its aggressive advertising campaign was misleading.

Son said, however, Softbank Mobile gained 23,800 customers in October and another 28,000 from November 1 through 7, with the net gain due to people starting fresh accounts rather than switching from other carriers.

"I think we are putting up a good fight," he said. "We will rectify what needs to be changed. In a long-run, I see no effects from the system troubles and the issues over our ad campaign."

In October, 55,000 Softbank Mobile customers left for other services, while 31,100 people joined Softbank. In November, 42,500 left for rival carriers, while 36,400 switched to Softbank.

But Softbank Mobile attracted fresh customers who started new accounts, Son said.

For the first half earnings, Softbank also saw a turnaround in its Yahoo BB Internet broadband service which logged an operating profit of 11.67 billion yen compared with a loss of 1.01 billion a year earlier.

Softbank did not provide any forecasts for the year to March 2007.

On Tuesday, Softbank announced a deal with media mogul Rupert Murdoch\'s News Corp to launch a Japanese version of the wildly popular US networking website MySpace

[au.biz.yahoo.com]

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von svx_biker - am 28.12.2006 21:16
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