Sprint's Parent Company SoftBank Sees Profits

SoftBank (SFTBY) saw profits fall 27% for the fiscal year ended March 31, 2016 and 30% for the fourth quarter, as it struggled to turn around Sprint (S) - Get Report .

The Tokyo-based telecom company reported a net profit of ¥558.2 billion ($5.1 billion) for the most recent fiscal year, compared with ¥763.7 billion profit in the previous fiscal year. The company did not give a forecast for the 2017 fiscal year. 

Sprint's sales increased 1.9% in yen terms from a year ago and earnings rose by 50.6% to ¥983.26 billion.

The company is attempting to turn around Sprint, which it bought in 2013. SoftBank is reducing capital spending at Sprint, and lowering prices in an attempt to gain customers from rivals.

The wireless carrier reported a strong fourth quarter earlier this month. The company earned $2.2 billion in the fourth quarter, beating analysts' estimates of $2 billion. But net losses widened in the period to 14 cents a share from 6 cents a share in the same time period last year.

Sprint also added 22,000 postpaid customers in the fourth quarter.

Earlier this year, SoftBank announced it would split into two companies, one domestic and one global.

The domestic company fared much better, reporting a 4.1% increase in sales and 4.3% increase in earnings. 

The company said today that that the domestic telecom sector is expected to grow more slowly than in the past, and would put an emphasis on reducing subscriber churn. SoftBank will also focus on bundled wireless and broadband packages.