SoftBank Profit Disappoints as Sprint Turnaround Continues
November 04 2015 - 2:10AM
Dow Jones News
TOKYO—Japan's SoftBank Group Corp. on Wednesday reported
weaker-than-expected net profit for its fiscal second quarter, as
it works to turn around Sprint Corp., the struggling U.S. wireless
carrier it acquired in 2013.
The Japanese telecommunications and Internet giant posted a net
profit of ¥ 213 billion, which was below analyst expectations for ¥
262 billion.
Operating profit for the July to September quarter rose 39% to ¥
342.21 billion from ¥ 245.59 billion a year earlier. Operating
revenue rose to ¥ 2.28 trillion from ¥ 2.07 trillion.
SoftBank's earnings come after Sprint said on Tuesday that it
added more postpaid phone customers than it lost in a quarter and
had its lowest cancellation rate in company history. But the
carrier's subscriber additions still fell behind those of rival
T-Mobile US Inc., and Sprint posted a net loss of $585 million in
the second quarter, showing that despite winning back some
customers, its losses are continuing to mount.
SoftBank Chairman Masayoshi Son recently reaffirmed his
commitment to turn around the struggling U.S. wireless carrier by
increasing SoftBank's stake in Sprint and purchasing a house near
Sprint's headquarters.
But concerns linger about its future. "Sprint's network isn't
bad, it's been taking cost-cutting measures and seeing an increase
in subscribers. But whether its competitiveness is recovering is a
matter of debate," said Satoru Kikuchi, an analyst at SMBC Nikko
Securities.
Write to Alexander Martin at alexander.martin@wsj.com
Access Investor Kit for "Deutsche Telekom AG"
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0005557508
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 04, 2015 01:55 ET (06:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Ntt Docomo (NYSE:DCM)
Historical Stock Chart
From Jul 2024 to Aug 2024
Ntt Docomo (NYSE:DCM)
Historical Stock Chart
From Aug 2023 to Aug 2024