Year-on-year Earnings Results Comparison
October 28, 2010
for the Six-month Period Ended September 30, 2010
SOFTBANK CORP. (hereafter “the Company”) announces the following earnings results comparison between the six-month period ended September 30, 2010 (hereafter “the interim period”) and the same period of the previous fiscal year (April 1, 2009 to September 30, 2009, hereafter “year-on-year”).
This is to explain the difference in the earnings results of the interim period on a year-on-year basis, as the Company did not announce a consolidated forecast for the interim period.
1. Year-on-year comparison of earnings results for the interim period
|Net Sales||Operating Income||Ordinary Income||Net Income||Net Income per Share|
|Six-month period ended
September 30, 2009 (A)
|Six-month period ended
September 30, 2010 (B)
2. Factors of the earnings results' difference
Net sales for the interim period increased 8.6% year-on-year to JPY 1,465,021 million. Operating income increased 36.8% year-on-year to JPY 315,521 million. Ordinary income grew 46.3% year-on-year to JPY 253,843 million. Net income rose 8.6% year-on-year to JPY 76,839 million.
(1) Net sales
Net sales totaled JPY 1,465,021 million, for a JPY 115,745 million (8.6%) year-on-year increase. This was mainly due to an increase in revenue at the Mobile Communications segment on strong growth in the number of subscribers combined with increases in ARPU*1 and the number of mobile handsets shipped*2.
(2) Operating income
Operating income totaled JPY 315,521 million, for a JPY 84,899 (36.8%) year-on-year increase. This was due to the increased net sales, while cost of sales and selling, general and administrative expenses increased along with net sales. The operating margin showed a substantial improvement at 21.5%, an increase of 4.4 of a percentage point year-on-year.
Cost of sales rose JPY 16,144 million (2.5%) year-on-year to JPY 665,496 million. This was mainly due to higher cost of goods on the increase in the number of handsets shipped, while depreciation and amortization expenses relating to the 2G mobile phone service decreased, due to termination of this service in March 2010, at the Mobile Communications segment.
Selling, general and administrative expenses grew JPY 14,701 million (3.1%) year-on-year to JPY 484,003 million. This was mainly because of increased sales commissions*3 associated with the increase in the number of mobile handsets sold*4 at the Mobile Communications segment.
(3) Ordinary income
Ordinary income totaled JPY 253,843 million, for a JPY 80,305 million (46.3%) year-on-year increase. This was mainly due to the increase in operating income.
(4) Net income
Net income increased JPY 6,088 million (8.6%) year-on-year to JPY 76,839 million. This was mainly due to the increase in ordinary income, while current income taxes of JPY 140,654 million were recorded.
- *1Average Revenue Per User
- *2Handsets shipped: handsets shipped (sold) to agents.
- *3Sales commissions paid to sales agents per new subscription and upgrade purchase.
- *4Handsets sold: handsets sold to customers upon new subscription and handset upgrade.
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