891624 : Softbank - 400% Kurspotential ( Seite 589)

July 28, 2011, 5:12 a.m. EDT

Softbank Q1 net profit up 5-fold on iPhone demand

By Juro Osawa

-- Softbank's 1Q net profit surges nearly five-fold

-- Softbank CEO says the company on track to achieve on-year rise in sales, profits

-- Softbank CEO says impact of its renewable energy business on earnings will be minimal

(Adds information on finances at 10th-13th paragraphs)

TOKYO -(MarketWatch)- Softbank Corp. (9984.TO) said Thursday that its net profit for the three months through June surged nearly five-fold as Japan's only carrier of Apple Inc.'s AAPL -0.34% iPhone and iPad continued to enjoy solid revenue and a growing subscriber base even as rivals expand their smartphone lineups.

Japan's third largest mobile carrier by subscriber numbers logged a record net profit of Y94.79 billion for the fiscal first quarter from April to June, up sharply from Y19.44 billion in the same period a year earlier.

"The solid growth in average per-user revenue and subscribers are behind our stable profits. I believe this trend will continue for some time," Chief Executive Masayoshi Son said at a press conference.

The popularity of Apple devices in Japan continued to underpin earnings at Softbank, whose business also includes Internet services. The iPhone and iPad have helped the carrier win new customers and generate more revenue from data transmission.

Operating profit for the quarter rose 12% to Y175.83 billion from Y156.60 billion a year earlier, while revenue rose 9% to Y764.24 billion from Y700.84 billion.

Softbank said its average per-user revenue for the April-June quarter declined to Y4,210 from Y4,290 a year earlier, but its data ARPU increased to Y2,440 from Y2,250, helped by iPhone users who generate more revenue from data traffic.

Rival KDDI Corp. (9433.TO), Japan's second biggest carrier, reported earlier this week that its April-June average per-user revenue declined 10% to Y4,640 from Y5,160 a year earlier.

As in the past, Softbank did not provide a full-year outlook, but Son said he is confident both sales and profits will mark an on-year increase. The company said there is also no change to its Y1 trillion capital spending plans over the next two years.

Earlier this month, Standard & Poor's Ratings Services raised its long-term credit and debt ratings on Softbank to BBB- from BB+ and removed them from CreditWatch following the company's recent decision to refinance its debt.

Some market players have expressed concerns that Son's recent enthusiasm for the renewable energy business in the wake of the country's nuclear crisis will hurt its improving finances.

But Son said the company's involvement in the business will not affect its finances and will only have a minor impact on its earnings.

"We are not planning a mammoth capital investment in renewable energy," Son said.

Softbank reports earnings under Japanese accounting standards.