12:12 - 07.11.2016 / Views: 8
SoftBank second-quarter profit up 6.8 percent on strong domestic telecoms business
SoftBank second-quarter profit up 6.8 percent on strong domestic telecoms business

Japan’s SoftBank Group Corp (9984.T) reported on Monday a 6.8 percent rise in operating profit for the July-September quarter, thanks to a strong showing by its domestic telecommunications business.

A steady growth in its mainstay domestic business is important for SoftBank, a diverse company with stakes from U.S. carrier Sprint (S.N) to e-commerce giant Alibaba (BABA.N), as it reorients towards cutting edge tech investments in line with founder and chairman Masayoshi Son’s growth plans for the firm.

As part of that gameplan, SoftBank in September bought UK chip designer ARM Holdings, Britain’s most valuable technology company, for $32 billion, in Japan’s largest ever outbound deal.

Its second-quarter profit rose to 334.7 billion yen ($3.21 billion) from 313.4 billion yen a year earlier. That compared with a 287 billion yen average estimate from two analysts, according to Thomson Reuters Starmine.

SoftBank’s domestic telecommunications operations posted an upbeat performance in the quarter, as the company has mostly completed network infrastructure investments and is yet to start full-fledged investments in the next-generation network.

Sprint, owned 83 percent by SoftBank and a long-time drag on the Japanese telecom group’s earnings, is also showing signs of improvement.

Sprint reported a return to operating profit in the latest quarter, strong net additions in postpaid phone subscribers and a record-low cancellation rate. It also raised the full-year outlook for operating profit.

As the wireless phone and broadband service markets are showing signs of maturing in Japan and the United States, however, SoftBank has been stepping up investments in new areas for future growth. Some of those moves have caused concern among analysts, as it is wrestling with a $112 billion debt pile.

Just about a month after the completion of the ARM deal, SoftBank and Saudi Arabia said they will create a technology investment fund that could grow as large as $100 billion.

SoftBank expects to invest over the next five years at least $25 billion in the fund, which would be one of the world’s largest private equity investors and a potential kingpin in the technology industry.

“Our investments were previously confined to our balance sheet,” Son said at an earnings briefing. “By creating the new fund, we would be better positioned to leverage the coming opportunities.”

U.S. lawmakers push for answers on Trump team’s Russia ties
15:15 - 16.02.2017

A crisis over the relationship between President Donald Trump’s aides and Russia deepened on Wednesday as a growing number of Trump’s fellow Republicans demanded expanded congressional inquiries into the matter. Trump sought to focus attention on what he called criminal intelligence leaks about his ousted national security adviser, Michael Flynn. Trump forced Flynn out on

North Korea launches ballistic missile test
12:12 - 13.02.2017

North Korea fired off a ballistic missile into the East Sea from Banghyeon North Pyongan Province early Sunday, according to South Korean officials. South Korea’s military is analyzing exactly what type of missile it was but there’s a strong possibility that it was a midrange Musudan type, according to officials. North Korea has test fired

US investigators corroborate some aspects of the Russia dossier
12:12 - 13.02.2017

For the first time, US investigators say they have corroborated some of the communications detailed in a 35-page dossier compiled by a former British intelligence agent, multiple current and former US law enforcement and intelligence officials tell CNN. As CNN first reported, then-President-elect Donald Trump and President Barack Obama were briefed on the existence of

After day in South Korea court, Samsung chief awaits arrest decision
15:15 - 16.02.2017

Samsung Group leader Jay Y. Lee left a Seoul court after more than eight hours on Thursday to await a decision on whether he will be arrested over his alleged role in a corruption scandal that has engulfed President Park Geun-hye. The 48-year-old Lee, wearing a dark coat and navy tie, kept his head down

Key business lobby warns UK not to play favorites in Brexit
12:12 - 13.02.2017

A key business lobby warned Britain’s government Monday not to play favorites among industries when it negotiates the country’s exit from the European Union, saying that ignoring any sector would hurt the entire economy. The Confederation of British Industries and the international law firm Clifford Chance also said in a new report that it is

Trump, South Korea’s Hwang agree to strengthen defenses against North Korea: White House
16:16 - 30.01.2017

U.S. President Donald Trump and South Korean Acting President Hwang Kyo-ahn agreed to take steps to strengthen joint defense capabilities to defend against North Korea’s nuclear threat, the White House said on Sunday after a telephone call between the two leaders. “President Trump reiterated our ironclad commitment to defend (South Korea), including through the provision

After day in South Korea court, Samsung chief awaits arrest decision
15:15 - 16.02.2017

Samsung Group leader Jay Y. Lee left a Seoul court after more than eight hours on Thursday to await a decision on whether he will be arrested over his alleged role in a corruption scandal that has engulfed President Park Geun-hye. The 48-year-old Lee, wearing a dark coat and navy tie, kept his head down

BT supports Google’s Android in EU antitrust row
21:21 - 06.02.2017

BT (BT.L) has become the first major telecoms company to back Google (GOOGL.O) in a battle with EU regulators, defending the “stability and compatibility” of the Android operating system, which is in the sights of anti-trust regulators. The EU says Google stifles competition by forcing smartphone makers to pre-install its search function and browser to

Nokia beats market expectations, sees network market improving
14:14 - 02.02.2017

Finnish network equipment maker Nokia reported its quarterly profits fell less than expected, helped by cost cuts and the acquisition of Alcatel-Lucent, and said the tough global market was starting to stabilize. Nokia and its rivals, Sweden’s Ericsson and China’s Huawei [HWT.UL], have struggled lately as telecom operators’ demand for faster 4G mobile broadband equipment

U.S. lawmakers push for answers on Trump team’s Russia ties
15:15 - 16.02.2017

A crisis over the relationship between President Donald Trump’s aides and Russia deepened on Wednesday as a growing number of Trump’s fellow Republicans demanded expanded congressional inquiries into the matter. Trump sought to focus attention on what he called criminal intelligence leaks about his ousted national security adviser, Michael Flynn. Trump forced Flynn out on

BT supports Google’s Android in EU antitrust row
21:21 - 06.02.2017

BT (BT.L) has become the first major telecoms company to back Google (GOOGL.O) in a battle with EU regulators, defending the “stability and compatibility” of the Android operating system, which is in the sights of anti-trust regulators. The EU says Google stifles competition by forcing smartphone makers to pre-install its search function and browser to

Iran says it sealed Boeing plane deal at half price
20:20 - 26.12.2016

Iran said on Sunday it had negotiated to pay only about half the announced price for 80 new Boeing (BA.N) airliners in an order that the American planemaker had said was worth $16.6 billion. Boeing and its European rival Airbus (AIR.PA) have both signed huge contracts this month to supply airliners to Iran, the first