TIDM56ID
RNS Number : 1153C
Softbank Corp
26 April 2012
April 26, 2012
Announcement Concerning Year-on-year Earnings Results
Comparison
for the Fiscal Year Ended March 2012
SOFTBANK CORP. (hereafter "the Company") announced the following
earnings results comparison between the fiscal year ended March
2012 and the fiscal year ended March 2011 (hereafter "the previous
fiscal year;" "year on year") .
This press release is announced based on Tokyo Stock Exchange's
guideline.
1. Comparison of earnings results
Net Sales Operating Ordinary Net Income Net Income
Income Income per Share
----------------- ----------- ---------- --------- ----------- -----------
Fiscal Year JPY mil JPY mil JPY mil JPY mil JPY
Ended 3,004,640 629,163 520,414 189,712 175.28
March 31,
2011 (A)
----------------- ----------- ---------- --------- ----------- -----------
Fiscal Year
Ended
March 31,
2012 (B) 3,202,435 675,283 573,651 313,752 285.78
----------------- ----------- ---------- --------- ----------- -----------
Difference
(B-A) 197,795 46,120 53,236 124,039 110.50
----------------- ----------- ---------- --------- ----------- -----------
Ratio (%) 6.6 7.3 10.2 65.4
----------------- ----------- ---------- --------- ----------- -----------
2. The earnings results' year-on-year fluctuation
For the fiscal year ended March 2012, the SOFTBANK Group
achieved consolidated net sales of JPY 3,202,435 million, a 6.6%
increase, with a 7.3% increase to JPY 675,283 million in operating
income. Ordinary income grew 10.2% to JPY 573,651 million. Net
income rose 65.4% to JPY 313,752 million.
(a) Net Sales
Net sales totaled JPY 3,202,435 million, for a JPY 197,795
million (6.6%) year-on-year increase. This was mainly due to
increased telecom service revenue, primarily from steady growth in
the number of mobile phone subscribers. Another factor was an
increase in sales of mobile handsets due to strong growth in
shipments of iPhone 4S, (1) which was launched in October 2011.
(b) Cost of Sales
Cost of sales rose JPY 112,133 million (8.2%) year on year to
JPY 1,485,750 million. This was primarily due to an increase in the
cost of sales for mobile handsets in the Mobile Communications
segment as the number of handsets shipped(2) increased in line with
the launch of iPhone 4S, along with higher depreciation and
amortization expenses, mainly relating to the installation of
additional base stations.
(c) Selling, General, and Administrative Expenses
Selling, general, and administrative expenses grew JPY 39,541
million (3.9%) year on year to JPY 1,041,401 million. This was
mainly because of an increase in the total amount of sales
commissions paid(3) in the Mobile Communications segment, resulting
from a rise in the number of handsets sold(4) following the launch
of iPhone 4S.
(d) Operating Income
As a result, operating income totaled JPY 675,283 million, for a
JPY 46,120 million (7.3%) year-on-year increase. The operating
margin rose 0.2 of a percentage point year on year to 21.1%.
(e) Non-operating Income / Expenses
Non-operating income totaled JPY 11,308 million, a JPY 6,012
million year-on-year decrease. Non-operating expenses were JPY
112,940 million, a JPY 13,128 million year-on-year decrease.
Interest expense decreased by JPY 41,813 million as SOFTBANK MOBILE
Corp. paid off its SBM loan(5) in October 2011. Meanwhile,
refinancing related expenses totaled JPY 24,956 million. These
mainly comprised costs relating to the Company's newly procured
funds for refinancing of the SBM loan, and repayment of the SBM
loan.
(f) Ordinary Income
Ordinary income therefore totaled JPY 573,651 million, for a JPY
53,236 million (10.2%) year-on-year increase.
(g) Special Income
Special income totaled JPY 117,765 million. The main components
of this were gain on sale of investment securities of JPY 88,368
million and dilution gain from changes in equity interest of JPY
20,185 million.
The gain on sale of investment securities was primarily
attributable to a JPY 76,430 million gain on sale of Yahoo! Inc.
shares. In connection with the Company's financing of USD 1,135
million from CITIBANK, N.A. through one of its U.S. subsidiaries in
February 2004, certain forward contracts ("collar transaction")
were entered into, which allowed the obligation to be settled at
maturity by delivering Yahoo! Inc. shares held by this subsidiary.
The forward contracts were to effectively hedge the variability of
cash flows associated with the future market price of the
underlying security.
During the second quarter of the fiscal year ended March 2012,
the obligation under the forward contracts was settled at maturity
by effectively delivering the shares of Yahoo! Inc. (book basis of
USD 142 million) to CITIBANK, N.A. The cash proceeds received by
the Company's aforementioned subsidiary from delivering the shares
of Yahoo! Inc. to CITIBANK, N.A. were then remitted to repay the
related obligation. Gain on sale of investment securities of JPY
76,430 million (USD 993 million) was recorded as a result of
settling the forward contracts.
Dilution gain from changes in equity interest was recorded
mainly in relation to the Company's equity method affiliate Renren
Inc.'s listing on the New York Stock Exchange in May 2011.
(h) Special Loss
Special loss was JPY 59,160 million. The main components of the
loss were a premium expense on advanced repayment of long-term debt
of JPY 21,875 million, loss on liquidation of subsidiaries and
affiliates of JPY 19,071 million, and a valuation loss on
investment securities of JPY 13,971 million. The premium expense
occurred in relation to SOFTBANK MOBILE Corp.'s repayment of the
abovementioned SBM loan in October 2011. The loss on liquidation of
subsidiaries and affiliates relates to the liquidation of the
Company's subsidiary Charlton Acquisition LLP, which held the
Betfair Group plc shares as a holding company in the U.K. The
valuation loss on investment securities was mainly associated with
a drop in the stock price of Betfair Group plc.
(i) Income Taxes
Provisions for current income taxes were JPY 196,509 million and
provisions for deferred income taxes were JPY 58,203 million. Total
income taxes increased JPY 21,763 million year on year to JPY
254,712 million.
(j) Minority Interests in Net Income
Minority interests in net income totaled JPY 63,790 million,
mainly related to net income recorded at Yahoo Japan
Corporation.
(k) Net Income
As a result of the above, net income totaled JPY 313,752
million, for a JPY 124,039 million (65.4%) year-on-year
increase.
1 iPhone is a trademark of Apple Inc. The iPhone trademark is used under license from Aiphone K.K.
2 Handsets shipped: handsets shipped (sold) to agents.
3 Sales commissions paid to sales agents per new subscription
and upgrade.
4 Handsets sold: total of new subscriptions and handset upgrades.
5 The loan procured under a whole business securitization scheme
as part of the loan for procurement of the
acquisition finance for Vodafone K.K. (currently SOFTBANK MOBILE Corp.).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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