Softbank’s second quarter profit surged thanks to its recent acqusition of Vodafone Group’s wireless unit. Net income climbed to 13 billion yen ($111 million) from 7 billion yen ($59.3 million) a year earlier, the Tokyo-based company said today. Sales more than doubled to 625.9 billion yen ($530 million), helped by a 22 percent rise in its Internet-content business which includes Yahoo Japan. Earlier this week, Softbank and News Corp said they were setting up a joint venture to bring MySpace to Japan.
Bloomberg: “Operating profit at Softbank’s Internet content-related business jumped 32 percent to 22.7 billion yen ($192 million) in the second quarter from a year earlier, led by higher advertisement sales at its Yahoo Japan Corp. affiliate and fees from its Yahoo auction and shopping sites.”
Reuters: Softbank is betting on cash flow at the wireless unit to repay loans it borrowed for the Vodafone acquisition. “We aim to continue generating operating profits at the wireless unit on a quarterly basis even with the increased costs we need to spend to compete and expand the network,” Softbank Chief Masayoshi Son said at a news conference. Despite aggressive discount campaigns and handset giveaways at retailers, Softbank captured just 9% of Japan’s net increase in mobile-phone subscribers in October after a new rule made it easier for customers to switch carriers, according to data yesterday from the operators.