Now I will like to start our presentation regarding the results for the first three months of the fiscal year ending March 2013. We will go immediately to page three of the presentation. Regarding the highlights, operating revenues was ¥1.0723 trillion, which reported an increase of 2.4% or ¥25 billion year-on-year. Operating income was ¥262.6 billion, down 1.9% or ¥5.1 billion year-on-year. Although operating income reported a slight decline year-on-year, operating revenues achieved a steadfast increase and we believe the results were quite favorable toward our target to achieve ¥900 billion in operating income for the full year.
Regarding net income for the first quarter, we achieved ¥164.3 billion, 3.5% increase or ¥5.6 billion increase compared to the previous fiscal year. Packet revenues increased by 9% to ¥485.1 billion; total handsets sales increased by 11.2% year-on-year to 5.17 million units. In particular, smartphone sales doubled almost compared to the last fiscal year to 2.49 million units. And in the month of July we’ve recorded sales of more than 1 million units. So as of today, for the first four months, we achieved close to 3.5 million units of smartphone sales. Total Xi subscriptions reached 3.32 million as of yesterday.
Slide number four. In addition to the numbers that I just mentioned, please look at the progress to full year forecast. Operating revenues, 24% compared to the full-year target and operating income 29.2% compared to the full-year target.
At the bottom, free cash flow, we reported a decrease of ¥30 billion because during first quarter of last fiscal year we didn’t report a dip because – partly due to the earthquake of March 2011. Sales was slack last year for the month of March last year; therefore, we didn’t have to pay so much commissions last fiscal year and also that delayed capital expenditures. So that is the reason why we have seen a reduction in free cash flows this fiscal year.