SoftBank Q1 net falls 68% on Alibaba charge

Dylan Bushell-Embling
11 Aug 2014

SoftBank has reported a 68% slump in net income for the June quarter, due in part to an accounting loss from the Adjustment on Alibaba's convertible shares in the lead-up to the IPO.

Net income fell to 77.6 billion yen ($760.1 million), in a result also impacted by temporary gains from a business consolidation a year earlier. The loss on the Alibaba presences will be converted to profit once the IPO concludes, SoftBank said.

Revenue by contrast climbed 126.1% due to the consolidation of Sprint, Brightstar, Supercell and Ymobile. But sales at SoftBank Mobile declined due to lower handset shipments.

SoftBank added 548,000 net users in Japan, but subscriber acquisition growth showed signs of starting to slow. The operator had around 36.5 million subscribers in the market by the end of the period.

Domestic mobile ARPU fell by 180 yen year-on-year to 4,280 yen, but data ARPU rose by 90 yen to 2,960 yen, thanks to LTE subscriber growth. SoftBank Mobile's churn rate grew by 0.12 of a percentage point to 1.11%.

SoftBank's recently-acquired US mobile operator Sprint meanwhile contributed net sales of 897.7 billion yen and income of 61.7 billion yen. But the operator's subscriber base fell by 334,000 to 54.6 million.

SoftBank has projected that it will take in net sales of 8 trillion yen and operating income of 1 trillion yen for the financial year ending in March 2015.

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