Softbank Corp. posted a recurring loss of 30.6 billion on revenue of 103.9 billion yen.

The company did not provide comparative figures as it was the first time it has issued quarterly earnings.

Softbank said its earnings were hit by the continued investment needed to expand its broadband operations, booking a 28.9 billion yen loss to obtain new customers for its Yahoo! BB service.

Its broadband/infrastructure division recorded 23.8 billion yen in revenue for the period as subscribers and average revenue per user both rose, the company said.

Softbank said separately that subscribers to its Yahoo! BB broadband service rose to 2.96 million at the end of July, up 139,000 from a month earlier, while users of its Internet-based BB phone rose to 2.67 million, up

The services are run through a Softbank subsidiary and Yahoo Japan Corp., in which Softbank holds a 41.9 percent stake.

"We are on course to achieve a subscriber base of four million by the end of March," said Softbank president Masayoshi Son.

He stressed the loss-making business was now on track to profitability.

"I am sure that we have already turned the corner (in the broadband business)," Son said, citing rising ARPU (average revenue per user) and cost-cutting efforts.

Softbank suffered an operating loss of 35.7 bln yen in the fourth quarter to March.

ARPU for the broadband Internet infrastructure business rose to 4,000 yen per month in the first quarter to June from 3,800 yen at the end of March.

"We are also cutting open street sales (of modems) and focusing on sales at supermarket chains and other retail channels as a means of reducing costs to win subscribers," Son said.

Softbank did not issue a full-year forecast.

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