Statement re; Earnings Result

RNS Number : 6491B

Softbank Corp

30 October 2009

 



October 29, 2009

Announcement Concerning Year-on-Year Earnings Results Comparison for the Interim Period of the Fiscal Year Ending March 2010

SOFTBANK CORP. (hereafter 'the Company') announced the following earnings results comparison between the interim period of the fiscal year ending March 2010 (April1, 2009 - September 30, 2009, hereafter 'the interim period') and the same period of the previous fiscal year (hereafter 'year-on-year'), since the Company did not announce a forecast on the earnings results for the interim period. 

1. Comparison of earnings results for the interim period of FY2009 and FY2010

	Net Sales	Operating Income	Ordinary Income	Net Income	Net Income per Share
Interim period of the fiscal year ended March 2009 (A)	JPY m 1,328,998	JPY m  180,000	JPY m  117,315	JPY m 41,115	JPY 38.04
Interim period of the fiscal year ending March 2010 (B)	1,349,275	230,621	173,538	70,750	65.41
Difference (B-A)	20,277	50,621	56,222	29,634	27.37
Ratio %	1.5	28.1	47.9	72.1	-

2. Factors of the earnings results' difference

Net sales for the interim period increased 1.5% compared with the interim period of the previous fiscal year ended March 2009 to JPY 1,349,275 million. Operating income increased 28.1% year-on-year to 

JPY 230,621 million. Ordinary income grew 47.9% year-on-year to JPY 173,538 million. Net income rose 72.1% year-on-year to JPY 70,750 million. 

(1) Net sales

Net sales for the interim period totaled JPY1,349,275 million, an increase of JPY 20,277 million (1.5%) year-on-year. This was primarily from JPY 58,232 million in sales growth at the Mobile Communications segment.  The net sales growth at the Mobile Communications segment was due to an increase in the number of mobile subscribers and the growth of handset shipments.  Net sales at the e-Commerce segment were down JPY 17,815 million, and at the Broadband Infrastructure segment declined 

by JPY14,501 million.

  (2) Operating income

Operating income for the interim period rose JPY 50,621 million (28.1%) year-on-year to JPY 230,621 million.

The Group's cost of sales for the interim period declined JPY 40,785 million (5.9%) year-on-year to JPY 649,351 million. This was mainly due to a decline in the cost of goods associated with lower sales at the e-Commerce segment, and lower depreciation and other costs at the Broadband 

Infrastructure segment due to an increase in fully depreciated assets.  In addition, telecommunication equipment usage fees paid by the Group's telecommunications related businesses declined due to a decrease in the access charge per second paid to other carriers. Despite a rise in handset shipments, a decline in cost per unit resulted in a slight decrease in the aggregate cost of sales for mobile handsets year-on-year.

Selling, general and administrative expenses for the interim period came to JPY 469,302 million, for a JPY 10,442 million (2.3%) year-on-year increase.  While sales commissions and sales promotions expenses increased along with net sales growth, the SOFTBANK Group was able to lower its expenses related to doubtful accounts (bad debt loss on doubtful accounts + provision for allowance for doubtful accounts) as its Mobile Communications segment benefited from the implementation of stricter customer credit screening for new subscriber applicants.

(3) Ordinary income

Ordinary income for the interim period rose 47.9% year-on-year. In addition to an increase in operating income, equity in earnings of affiliated companies was improved, and interest expenses were decreased year-on-year. 

(4) Net income

Net income for the interim period grew 72.1% year-on-year. In addition to an increase in ordinary income, special loss was decreased year-on-year.

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