Softbank reported Monday that its group net loss grew to 77.3 billion yen ($707 million) in the six months ended Sept. 30, from a loss of 55.8 billion yen in the same period a year ago.

Group sales grew 18 percent to 225.5 billion yen ($2 billion) from 191 billion yen a year ago.

Softbank is making its broadband service, Yahoo! BB, its main business and is offering free trial periods as well as free modems to woo users. The company is also investing heavily in an advertising campaign.

Softbank has also slashed fees, forcing rivals to bring down costs and making Japan one of the cheapest nations in the world to have at-home broadband connections.

Analysts say Softbank is likely to face tough competition as rivals such as telecommunications giant and former government monopoly Nippon Telegraph and Telephone Corp. start to expand broadband services. Yahoo BB is outpacing its rivals so far and has attracted more than 3.3 million users in Japan.

Sales were growing as more people sign on to Yahoo BB and demand grows for businesses related to Internet culture, Softbank said. Softbank did not release earnings forecasts for the fiscal year ending March 31, 2004.

By: DocMemory
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