Softbank profits fall in April-June on heavy taxes

TOKYO

Softbank Corp., which runs the only Japanese mobile carrier to offer the iPhone and iPad, said Thursday that its businesses prospered during the April-June quarter, but net profit fell 29 percent as it booked large tax expenses.

The Tokyo-based Internet and communications conglomerate said it booked 19.4 billion yen ($223 million) in net profit during its first quarter, down from 27.4 billion yen from a year earlier. Revenues were slightly higher at 700.8 billion yen versus 666.3 billion yen.

Softbank said the drop in profit came from higher taxes on its mobile and online businesses compared to the earlier quarter.

But the company reported a strong performance across its core business, including its main mobile unit, which added 696,600 subscribers during the three-month period. Operating profit, seen as an indicator of actual business performance, rose about 70 percent in the unit, as its strong iPhone sales continued.

Softbank's Internet properties, which include Yahoo Japan, also saw profits rise as advertising revenue increased.

Before results were announced, Softbank shares fell 1.1 percent to 2,595 yen on the Tokyo Stock Exchange.