Softbank Corp. said Tuesday its net profit more than tripled to ¥46.46 billion in the six months that ended Sept. 30 from ¥14.4 billion a year earlier after winning more mobile phone subscribers than bigger rivals NTT DoCoMo Inc. and KDDI Corp.
Softbank, the No. 3 mobile carrier, reported an operating profit of ¥167.74 billion, up 49 percent from the same period last year, while group revenues rose 21.8 percent to ¥1.36 trillion.
The upbeat performance indicates Softbank's April 2006 purchase of Vodafone Group PLC's struggling operations paid off. The firm's aggressive marketing campaigns and low monthly fees, including a ¥980 flat rate for users who only make calls to other Softbank customers, helped boost subscribers.
During the six-month period, Softbank saw a net increase of more than 1.14 million mobile phone subscribers, outperforming KDDI's 1.03 million and DoCoMo's 320,000, according to figures complied by the Telecommunications Carriers Association.
The so-called number portability system that took effect in October 2006, enabling users to switch carriers without changing numbers, has intensified competition in a 100 million-strong mobile market, prompting DoCoMo and KDDI to later reduce fees by 50 percent.
The mobile phone business, the main pillar of Softbank's earnings, generated an operating profit of ¥94.21 billion, up 66.4 percent from a year earlier, accounting for 56 percent of total operating profits.
To challenge its rivals and continue to woo traditionally fickle consumers, Softbank, before the yearend shopping season, unveiled 10 new handset models, including one based on the popular Gundam "anime" series. Also, it is set to open a portal site for music downloads after KDDI and Sony Corp. announced a tieup to enable KDDI phones to tap Walkman music players.
"Our (mobile phones) for the winter season not only feature cutting-edge functions, but also designs and (animation) characters. I want mobile phones to entertain users," Softbank Chief Executive Officer Masayoshi Son said in a news conference in Tokyo.