SoftBank swings back into profit with gains offsetting losses, but shares drop due to BOJ rate hike.

From CNBC: 2024-08-07 03:54:17

SoftBank Group Corp. announced a 1.9 billion yen ($12.9 million) investment gain on its Vision Fund tech investment arm in the first fiscal quarter, helping it swing back into profit. However, the Vision Fund as a whole posted a 204.3 billion yen loss, leading the company to buy back up to 6.8% of shares available.

SoftBank credited gains from Chinese portfolio companies like ByteDance for offsetting losses from firms like AutoStore and Symbotic. The company’s recent success is also attributed to the IPO of chip designer Arm, of which SoftBank owns around 90%. Despite this, SoftBank shares tanked almost 19% following an interest rate hike by the Bank of Japan.

SoftBank’s net sales in the June quarter rose 9.3% year-on-year to 1.7 trillion yen, with a net profit of 10.5 billion yen. The company credited investment gains on Alibaba and T-Mobile shares, with the conglomerate growing due to its early bet on Alibaba, which has since boomed. SoftBank has been cutting its Alibaba stake to focus on AI investments.



Read more at CNBC:: SoftBank earnings report Q1 FY 2024