SoftBank Reveals Capex, Revenue and Opex for September Quarter

Soft Bank said capital expenditure was 337.4 billion yen in the six months ended September 30, 2022, an increase of 38.2 billion yen year-on-year.

The raise of Capex was primarily due to increased capital spending for 5G and renewal of colocation service contracts, SoftBank said.

SoftBank does not disclose the number of 5G subscribers on its network. Currently, SoftBank has 38.9 million mobile phone customers. SoftBank’s ARPU was 3,880 yen.

The number of SoftBank Hikari broadband Internet connections for households was 8.35 million.

SoftBank’s revenue rose 84.3 billion yen (3.1%) to 2,808.6 billion yen, up across all segments.

Revenue rose 33.9 billion yen in Yahoo! JAPAN/LINE, primarily due to increased revenue from account advertising at LINE Corporation and search advertising at Yahoo Japan.

Commerce revenue increased by 36.8 billion yen in the Distribution segment, due to an increase in subscription services revenue, by 11.7 billion yen in the Enterprise segment, mainly due to a increased demand for scanning solutions, and 7.1 billion yen in the consumer segment. segment.

SoftBank’s mobile services revenue fell 29.0 billion yen (3.6%) – reflecting lower ARPU due to reduced prices for mobile services. SoftBank achieved an increase in the number of smartphone subscribers thanks to the Y!mobile brand.

The decrease in ARPU due to lower prices for mobile services is mainly explained by the effects of the switch of subscribers from the SoftBank brand to the Y!mobile and LINEMO brands and the introduction of new price plans under the SoftBank brands and Y!mobile.

SoftBank’s broadband revenue fell 3.7 billion yen (1.8%) due to lower ARPU from campaign initiatives. SoftBank realized an increase in the number of subscribers to the SoftBank Hikari fiber optic service.

Operating income decreased by 72.3 billion yen (12.7%) to 498.6 billion yen. Operating income decreased by 49.0 billion yen in the Consumer segment due to the impact of the introduction of new rate plans, by 16.0 billion yen in the Yahoo! JAPAN/LINE segment due to increased HR expenses.

SoftBank’s operating expenses were 1,069.9 billion yen, an increase of 56.1 billion yen (5.5%) year-on-year. This increase is mainly due to an increase in the cost of products related to the Ouchi Denki service, while there was a decrease in the cost of products associated with the aforementioned decrease in the volume of sales of mobile devices.

Sallie R. Loera