Softbank to invest money into Vodafone unit after Q1 profits

11 Aug 2006

Japanese Internet and fixed line giant Softbank vowed to spend aggressively to make its acquisition of telecom giant Vodafone's Japanese unit a success, an AFP report said.
The AFP report said Softbank made the decision after posting profits in its most-recent quarter.
The AFP report said Softbank's Internet service and fixed line telephone business shaped up, helping the conglomerate post a net profit of 1.42 billion yen ($12.39 million) in the three months to June.
'We are no longer saddled with any loss-making businesses, as both our broadband business and Japan Telecom turned profitable,' said Softbank president Masayoshi Son, quoted in the AFP report, said.
Softbank, which owns search engine Yahoo Japan, said operating income reached 54.36 billion yen ($471 million) for the quarter, against a loss of 3.19 billion yen ($27.6 million) in the same period last year, as revenue jumped 91% to 494.23 billion yen ($4.2 billion).
In April, it completed a deal to buy Vodafone Japan for $15 billion. It plans to re-brand it to 'Softbank Mobile' on October 1, ditching the name of the British giant which struggled to penetrate the tough Japanese market, the AFP report further said.

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