(MENAFN) SoftBank Corp announced a near USD1bn share buyback and a higher quarterly profit as loss-making Sprint Corp fared better than expected, with the Japanese telecoms group forecasting "light at the end of the tunnel" for its US unit.
The share buyback worth up to USD961.69mn would be SoftBank's biggest ever if carried out in full. CEO Masayoshi Son attributed the surprise move to its lacklustre share price and renewed confidence in Sprint which SoftBank bought for more than USD20bn in 2013 but has struggled to turn around.
"Repurchasing shares is an effective way of returning profit to shareholders. But it's also a message from management to markets, regarding the share price," he told reporters yesterday. "We've now become fully confident."
Sprint on Tuesday reported a smaller-than-expected quarterly loss and lower churn, or defections, a rare sign of improvement for a carrier that has struggled to compete against larger rivals AT&T and Verizon Communications.
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