TOKYO (AP) – Softbank’s quarterly profit nearly tripled as gains from the IPO of Chinese e-commerce company Alibaba offset losses at US mobile carrier Sprint.
The Japanese telecommunications and Internet-services company reported Tuesday a fiscal second quarter profit of 483.1 billion yen ($4.3 billion), up from 165.8 billion yen a year earlier. Quarterly sales surged 23 per cent to 2.11 trillion yen ($18.7 billion).
Softbank, the first to sell the iPhone in Japan, has widespread global investments including Chinese e-commerce company Alibaba, which listed in New York earlier this year after a record-busting stock sale. Softbank said it gained 599 billion yen ($5 billion) from the listing.
One sore spot is Sprint, which Softbank bought a majority stake in earlier this year. It said costs from layoffs at Sprint will total 17 billion yen ($150 million). Sprint is eliminating 2,000 jobs, or about 5 per cent of its staff, to cut $1.5 billion in annual spending.
Overland Park, Kansas-based Sprint, which announced a separate round of job cuts in early October, reported a $765 million loss for the quarter. But Softbank is eyeing Sprint as a long-term investment.