Softbank Profits Jump 6-Fold on Disposal - To Stop Selling 2G Handsets

Japan's Softbank has reported a six-fold jump in its fiscal third quarter profits - helped primarily by the stock market listing of Chinese website, Alibaba. Softbank is a shareholder in the parent company of the website operator.

Net profit for the three months to Dec 31st rose to ¥ 46.7 billion (US$438.2 million) and operating profits rose to ¥ 92.4 billion (US$867 million).

As of the end of this period, the number of Softbank Mobile subscribers had reached 17,613,500, an increase of 2.117 million subscribers year-on-year. Since May 2007, Softbank Mobile has achieved the highest monthly net additions in subscribers (new subscribers minus cancellations) in the industry for eight consecutive months. Moreover, the number of 3G subscribers reached 12,281,500 as a result, the ratio of 3G subscribers to total number of subscribers increased to 69.7%.

To further promote the migration to 3G, Softbank Mobile said that it will stop accepting new contract applications for its 2G service, including its prepaid service as of March 31, 2008.

The churn rate for the third quarter was 1.21%, while the churn rate for 3G subscribers was lower, at 0.88%.

Total ARPU for the third quarter was ¥4,520 (US$42.41) per month. ARPU decreased by ¥1,040 compared to the third quarter of the previous fiscal year. This was due to the effect of the steady growth in the number of subscribers to White Plan, which has a basic monthly charge of ¥980 (including tax) and exceeded 10 million subscribers during December 2007, as well as to the special discount for subscribers to New Super Bonus plan. However, data ARPU increased by ¥160 compared to the third quarter of the previous fiscal year, to ¥1,490, and constituted 33% of total ARPU.

Posted to the site on 7th February 2008