Softbank Profits Soar on iPhone Popularity

Softbank Corp., which operates the only Japanese carrier to offer the iPhone, said profit rose 41 percent in the October-December quarter, as earnings soared in its mobile operations.

The Tokyo-based company said Tuesday it booked a 24.11 billion yen ($265 million) net profit during its third quarter, up from 17.07 billion yen a year earlier. Revenue rose 7 percent to 696.0 billion yen from 653.2 billion yen.

Softbank said mass adoption of the iPhone drove its profits during the quarter, and Apple’s Internet-friendly device helped drive its data-related revenue per user to a new high. Operating profit in its mobile business, which is its biggest division, shot up 80 percent from a year earlier.

The company runs the smallest of Japan’s three main mobile carriers but has gained market share by repeatedly slashing prices and introducing popular ad campaigns with major stars. Softbank’s other main source of profit is its Internet holdings, which include Yahoo Japan and a large domestic stock-trading site.

The company’s big jump in quarterly profit came despite special accounting charges of about 47 billion yen it booked during the period, related to phasing out equipment for older network services and upgrades to current equipment.

For the full fiscal year through March, the company kept its operating profit forecast at 420 billion yen. Softbank didn’t provide revenue or net profit forecasts.

In Tuesday trade, which finished before the earnings were announced, the company’s shares rose 2.9 percent to 2,422 yen.

2/2/2010 2:58 AM TOKYO (AP)