SoftBank Corp expects continued mobile slide

SoftBank Corp forecast a fourth consequence quarter of year-on-year declines in mobile services revenue, with falling tariffs to reduce sales in the segment by an estimated JPY90 billion ($683 million) in fiscal 2022 (ending 31 March).

During its fiscal Q3 earnings call (covering the period to end-December 2022) president and CEO Junichi Miyakawa said the impact of price reductions starting in 2021 is projected to decline to JPY50 billion in fiscal 2023.

Miyakawa noted the end of three fiscal years of mobile sales declines is in sight: the company targets a recovery starting in fiscal 2024.

Mobile service revenue in fiscal Q3 period fell 6.1 per cent year-on-year to JPY372.3 billion and equipment sales 2.7 per cent to JPY167.5 billion.

Total ARPU declined 5.2 per cent to JPY3,840.

Mobile subscribers rose 1.6 per cent 39.2 million.

Revenue grew 6 per cent to JPY1.54 trillion, as gains from its enterprise, distribution, Yahoo Japan and Line segments offset the weakness in mobile.

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Enterprise revenue improved 5.8 per cent to JPY188.4 billion; Yahoo Japan and Line increased 3 per cent to JPY409.7 billion; and its distribution business grew 16.7 per cent to JPY146.5 billion.

Net profit rose 139 per cent to JPY274.4 billion, due to a one-off JPY294.8 billion gain from converting PayPay into a subsidiary.

Capex for April to December increased 20.6 per cent to JPY540.6 billion, due to higher spending on its 5G network and an increase in right-of-use assets related to the renewal of lease contracts for colocation services.