SoftBank Profit Rises 9% and Exceeds Estimates

SoftBank Corp. On Tuesday it posted an 9% increase in second quarter operating profit, beating estimates, boosted by its mobile business.

Operating profit for the July-September quarter was 283 billion yen ($ 2,60 billion). This compared with an average forecast of 266 billion yen from four analyst estimates compiled by Refinitiv.

The results of SoftBank Corp. They are closely monitored by investors, not only because it is Japan's third largest telecommunications company and is committed to paying 85% of its profits as dividends, but as an indicator of the health of parent company SoftBank Group Corp., which has a stake of 67%.

The telecommunications company maintained its full-year operating profit forecast at ¥ 890 billion.

The SoftBank Group, which reports its earnings on Wednesday, is trying to raise funds for a second technology fund, but is expected to make big reductions in some of the big technology stakes it and its $ 100 billion Vision Fund. , made.

The results of SoftBank Corp. follow rivals NTT Docomo and KDDI Corp., which reported last week that profits fell 13% and 9%, respectively.

Rising prices at Japan's three major telecommunications companies were alleviated by delays in deploying Rakuten Inc.'s new mobile network, which was hit by delays in building base stations, with the company still announcing a concrete release date. commercial services.

Source: Reuters