Telco Softbank Q1 profit up 4%

TOKYO: Japanese wireless carrier Softbank Corp yesterday reported a 4% rise in first-quarter operating profit, beating analyst estimates, supported by its enterprise and internet businesses.

April-june profit reached 280 billion yen (Us$2.6bil). That compared with the 262 billion yen average of two analyst estimates compiled by Refinitiv.

A fall in profit at its consumer business was offset by growth in enterprise as it benefits from growing demand for teleworking services amid the coronavirus outbreak.

Softbank is making a major push into online retailing through companies it controls. Z Holdings Corp last week said operating profit from e-commerce topped its media business for the first time and online fashion retailer Zozo Inc reported a big profit jump as shoppers shift online.

Parent Softbank Group Corp has cut its stake in the telco to 62.1% from 67.1% as chief executive Masayoshi Son sells assets to fund a record 2.5 trillion yen share repurchase plan.

The buyback has fuelled a divergence in market valuation, with Softbank Corp’s share price languishing below its 1,500 yen initial public offering price from December 2018, even as its parent’s shares rocket to two-decade highs. — Bloomberg