iPhone Fuels Softbank Corp Profit

The Japanese telecoms and internet company Softbank Corp has reported a Q4 net profit growth of 48%, reaching Y147 billion compared to last year’s Y99.55 billion. Their profit is mostly due to the iPhone since they are the only Japanese iPhone carrier.

"The expansion of the smartphone market led by the iPhone and iPad was a huge factor that contributed to the growth," Softbank President and Chief Executive Masayoshi Son said.

Softbank revenues also went up by 5% reaching Y754.74 billion (£5.7 billion) from Y718.10 billion.

Japanese phone carriers are trying to lure users into using their mobile devices once again since users are spending less and less money talking on their phones. Therefore carriers offer a wider range of smartphones aiming at gaining more users who download multimedia content.

The average per user revenue was of Y4,210 (£32) from last year’s Y4,070. Other Japanese carriers (including NTT DoCoMo Inc and KDDI Corp ) saw their average per use revenue drop. Softbank had 24.5 million subscribers at the end of March, marking a 16% increase in user subscriptions.

Softbank’s full fiscal year net profit doubled to Y189.71 billion from Y96.72 billion. The operating profit increased by 35% reaching Y629.16 billion.

The company preferred not to give any forecasts about their profit in the next two years but they said they would invest Y1000 billion in their mobile phone business over the next two years.

"Our profit will continue to increase, but instead of pursuing (a particular) rate of growth, we will work to reinforce our capital spending and secure subscribers for the next two years," Son said.

Softbank uses the Japanese accounting standards for reporting their income.