Announcement Concerning Recognition of Special Loss in a SubsidiaryJan. 31, 2008
SOFTBANK CORP. (hereinafter ‘The Company’) announces that the Board of Directors of SOFTBANK TELECOM Corp. (Head office: Minato-ku, Tokyo; Representative: Masayoshi Son, hereinafter ‘SBTM’), a consolidated subsidiary of the Company, resolved the recognition of loss on disposal and impairment loss relating to part of its telecommunications equipment, at the board of directors meeting held today. The details are as follows:
1. Reasons for disposal and impairment
In its direct connection fixed-line voice service SBTM has focused its efforts towards the acquisition of corporate customers; the number of corporate customers continues to increase steadily. The corporate demand is currently shifting from analogue to digital lines for which profitability is higher. In view of this change, SBTM has reexamined its acquisition strategy. Due to the fact that use of part of the analogue telecommunications equipment is not anticipated, loss on unused telecommunication supplies and loss on disposal of fixed assets (including leased assets) is recorded.
2. Impact on financial results
The Company expects to record approximately 26.0bn yen as special loss for the third quarter of the fiscal year ending March, 2008.
The consolidated financial report for the nine-month period ended December 31, 2007 is scheduled to be announced on February 7.
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