Japan Earns Softbank
A pedestrian carries a phone past a SoftBank logo in Tokyo. Photo: AP file

SoftBank Group marks return to profit as it cuts Vision Fund losses


Japanese technology conglomerate SoftBank Group returned to profitability in October-December after four straight quarters in the red, the company said Thursday.

Tokyo-based SoftBank reported a 950 billion yen, profit for the October-December quarter, a reversal from a 783 billion yen loss in the same period a year earlier.

It remained in the red for the first nine months of the fiscal year that ends in March. Its 458.7 billion yen loss for April-December was still an improvement from the 912.5 billion yen in losses a year earlier.

Nine-month sales at SoftBank rose 2.6% to 5 trillion yen. Quarterly sales rose nearly 5% to 1.77 trillion yen.

SoftBank, which invests in companies such as Yahoo Japan, T-Mobile, Alibaba and Line, said it reduced its losses related to its array of investments called the Vision Fund.

But it added losses from its holding in Chinese e-commerce giant Alibaba, though overall SoftBank has reduced its exposure to the Chinese market.

The company, led by visionary billionaire Masayoshi Son, has also invested in WeWork, a provider of shared work spaces, which filed for Chapter 11 bankruptcy protection last year.

The listing of British semiconductor and software design company Arm on the Nasdaq in September netted 674 billion yen in proceeds. SoftBank, which owns a 90.6% stake in Arm, said it sees great potential in Arm because of its deals with leading companies for building chips for smartphones and other devices, and for auto and AI applications.

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While this may be good short term news for myopic investors lacking intelligence not to buy stock in this dilapidated dinosaur of a tech firm, in the long run it will prove fatal for their bottom lines. Son mismanaged and overexpanded then appointed incompetent foreigners to be Ghosn like scapegoats for the very firm he both crested then raped and pillaged. Anyone with any knowledge of the economy knows a firm that owns a baseball team that cant win a pennant is not doing well financially. SoftBank is a prime example of this, and rest assured, they will not win this year. The only people who will win are keen Japanese investors who short this company.

2 ( +2 / -0 )

The British government, led by EU remainers at the time, a la Theresa May, were bonkers to allow Masayoshi Son to take over the country’s greatest company.

Now, with all that money, maybe Son can live up to the promise the deal was predicated on and which he immediately broke – that he double the number of ARM employees.

Although promises are things that billionaires are allowed to break, so good luck with that.

-1 ( +0 / -1 )

Another Japanese company kicking butt. Nothing new.

0 ( +1 / -1 )

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