Statement re Consolidated Fin

RNS Number : 8576M

Softbank Corp

05 February 2009

 



Nine-Month Period of the Fiscal Year Ending March 2009 (April 1, 2008, to December 31, 2008)

Consolidated Financial Highlights

Consolidated Statements of Income

Record high operating income on nine-month basis

•    Consolidated net sales were ¥1,982.2 billion (￥76.5 billion or 3.7% decrease year-on-year).

The principal reason was a 23% year-on-year decline in handset sales.

•    Record high operating income of ¥274.6 billion (￥14.5 billion or 5.6% increase year-on-year).

In addition to favorable profit growth at Yahoo Japan Corporation, contributions were made by continued cost reductions at SOFTBANK TELECOM Corp. and SOFTBANK BB. Corp. 

•    Ordinary income was ¥174.4 billion (￥57.5 billion or 24.8% decrease year-on-year).

    Recorded ￥57.2 billion in equity in earnings under the equity-method related to the new listing of Alibaba.com Limited in the third quarter of the previous fiscal year. 

•    Net income was ¥58.1 billion (￥35.0 billion or 37.6% decrease year-on-year).

Segment Information

Continued profit improvement in Fixed-line Telecommunications, Broadband Infrastructure segments

•    Net sales in the Mobile Communications segment were ¥1,150.8 billion (￥69.7 billion or 5.7% decrease year-on-year).

    Handset sales decreased due to decline in number of handsets sold, however telecom service revenue grew due to the increase in subscribers and end of first installment discount cycle. 

•    Operating income in the Mobile Communications segment was ¥134.9 billion (￥13.0 billion or 8.8% decrease year-on-year).    

•    Net sales in the Broadband Infrastructure segment were ¥178.4 billion (￥15.7 billion or 8.1% decrease year-on-year).

•    Operating income in the Broadband Infrastructure segment was ¥36.6 billion (￥6.3 billion or 20.8% increase year-on-year).

•    Net sales in the Fixed-line Telecommunications segment were ¥268.6 billion (￥2.7 billion or 1.0% decrease year-on-year).

•    Operating income in the Fixed-line Telecommunications segment was ¥11.3 billion (6.6-times increase year-on-year).

•    Net sales in the Internet Culture segment were ¥189.8 billion (￥12.9 billion or 7.3% increase year-on-year).

•    Operating income in the Internet Culture segment was ¥92.0 billion (￥8.2 billion or 9.9% increase year-on-year).

  Consolidated Balance Sheets / Consolidated Statements of Cash Flows

Achieve ￥213.5 billion of improvement in operating cash flows, ￥264.0 billion improvement in free cash flow

•    Total assets were ¥4,302.6 billion (¥256.2 billion or 5.6% decline from the end of the previous fiscal year).

The principal reasons were a decrease in cash and deposits due to the acquisition of treasury stock by Yahoo Japan Corporation and repayment of borrowings in SOFTBANK MOBILE, in addition to a decrease in investment securities of Yahoo! Inc due to the decline of its share price etc.

•    Total liabilities were ¥3,458.9 billion (¥251.2 billion or 6.8% decline from the end of the previous fiscal year).

Progress was made in reducing payables, such as accounts payable-other and accounts payable-trade, and interest-bearing debt.

•    Total equity was ¥843.6 billion (￥5.0 billion or 0.6% decrease from the end of the previous fiscal year).

    Accumulated deficit decreased by ￥55.3 billion, however due to the decline in the share price of Yahoo! Inc. in the U.S., unrealized gain on available-for-sale securities decreased by \54.6 billion and the yen's appreciation during the period resulted in a \33.2 billion decrease in foreign currency translation adjustments. 

•    Shareholders' equity ratio was 9.0% (0.6 percentage point improvement from the end of the previous fiscal year).

•    Net cash provided by operating activities was ¥270.7 billion (compared to ¥57.2 billion provided in the same period of the previous fiscal year). 

    Due to an increase in repayments by subscribers on the installment plan, receivables trade decreased by ￥8.5 billion, while an increase of ￥221.5 billion was recorded in the same period of the previous fiscal year. This resulted in an improvement of \230.0 billion year-on-year. 

•    Net cash used in investing activities was ¥223.1 billion (compared to ¥273.6 billion used in investing activities in the same period of the previous fiscal year).

•    Free cash flow*1 was ￥47.6 billion positive (compared to ￥216.3 billion negative in the same period of the previous fiscal year). 

•    Net cash used in financing activities was ¥149.5 billion (compared to ¥301.2 billion provided by financing activities in the same period of the previous fiscal year).

Progress on Earnings Forecasts for Fiscal Year Ending March 2009

Free cash flow for fiscal year revised upwardly by ￥10.0 billion to ￥150.0 billion 

•    80.8% progress on operating income forecast for fiscal year ending March 31, 2009 during third quarter. 

    Initial forecast of consolidated operating income for the fiscal year has not been changed at ￥340.0 billion.

•    The forecast of consolidated cash flows from operating activities for the fiscal year has been revised upwardly, due to the improvement of working capital in the Mobile Communications segment, to ￥420.0 billion - ￥430.0 billion.

•    The forecast of consolidated cash flows from investing activities for the fiscal year has been revised upwardly, due to improved efficiency of capital expenditure, to ￥(280.0) billion - ￥(270.0) billion.

•    The forecast of consolidated free cash flow for the fiscal year has been revised upwardly by ￥10.0 billion to ￥150.0 billion. Further efforts will be put into cash flow focused operations in order to enhance free cash flow. 

  Mobile Communications Segment: Key Indicators

No. 1 in monthly net additions in subscribers for 20 consecutive months

•    Total number of subscribers as of the end of December 2008 was 19.99 million (1.41 million increase from the end of the previous fiscal year).

•    No. 1 in monthly net additions for 20 consecutive months through December 2008.

•    3G subscription ratio as of the end of December 2008 was 86.2% (10.6 percentage point increase from the end of the previous fiscal year).

•    Total ARPU*2 in the third quarter was ¥4,090 (a decline of ¥220 from the end of the previous fiscal year and a decline of ¥80 from the second quarter).

•    Voice ARPU in the third quarter was ¥2,300 (a decline of ¥410 from the end of the previous fiscal year and a decline of ¥160 from the second quarter).

•    Data ARPU in the third quarter was ¥1,790 (an increase of ¥190 from the end of the previous fiscal year and an increase of ¥80 from the second quarter).

•    The churn rate for the third quarter was 0.91% (0.28 percentage point improvement from the end of the previous fiscal year).

•    The upgrade rate for the third quarter was 1.67% (0.26 percentage point improvement from the end of the previous fiscal year).

*1.The combined net cash flow from operating activities and investing activities. 

*2. Average Revenue Per User

  Third Quarter of the Fiscal Year Ending March 2009 (October 1, 2008, to December 30, 2008)

Consolidated Financial Highlights

Consolidated Statements of Income

Record high operating income on quarterly basis

•    Consolidated net sales were ¥653.2 billion (￥40.7 billion or 5.9% decrease year-on-year).

        The main factor was a 28% year-on-year decline in handset sales

•    Operating income was ¥94.6 billion (￥2.2 billion or 2.4% increase year-on-year).

•    Ordinary income was ¥57.1 billion (￥63.6 billion or 52.7% decrease year-on-year).

    Recorded ￥57.2 billion earnings under the equity-method related to the new listing of Alibaba.com Limited in the same period of the previous fiscal year. 

•    Net income was ¥17.0 billion (￥29.6 billion or 63.5% decrease year-on-year).

Segment Information

Other than Mobile Communications, operating income improved in all segments

•    Net sales in the Mobile Communications segment were ¥376.8 billion (￥29.2 billion or 7.2% decrease year-on-year).

•    Operating income in the Mobile Communications segment was ¥46.7 billion (￥7.0 billion or 13.0% decrease year-on-year).

•    Net sales in the Broadband Infrastructure segment were ¥58.3 billion (￥5.9 billion or 9.3% decrease year-on-year).

•    Operating income in the Broadband Infrastructure segment was ¥14.3 billion (￥3.0 billion or 26.8% increase year-on-year).

•    Net sales in the Fixed-line Telecommunications segment were ¥90.1 billion (￥0.2 billion or 0.2% increase year-on-year).

•    Operating income in the Fixed-line Telecommunications segment was ¥5.7 billion (￥4.4 billion or 320.1% increase year-on-year).

•    Net sales in the Internet Culture segment were ¥64.2 billion (￥2.2 billion or 3.4% decrease year-on-year).

•    Operating income in the Internet Culture segment was ¥30.8 billion (￥2.0 billion or 7.0% increase year-on-year).

The consolidated financial statements for the period ended December 31, 2008 were prepared following the Regulations for Quarterly Consolidated Financial Statements. Therefore, the financial results of the same period of the previous fiscal year and year-on-year comparisons have been included for reference purposes.

 

END

 

 

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