SoftBank Returns to Profitability in Q2
Japanese technology conglomerate SoftBank Group Corp. reported a return to profitability in the July-September quarter, driven by positive results from its Vision Fund investments. The company posted a net income of nearly 1.18 trillion yen ($7.7 billion) for the fiscal second quarter, compared to a loss of 931 billion yen in the same period last year.
SoftBank attributed the turnaround to several factors, including income from royalties and licensing related to its holdings in Arm, a computer chip-designing company. Additionally, the absence of losses related to SoftBank's investment in office-space sharing venture WeWork, which filed for bankruptcy protection in 2023, contributed to the improved financial performance.
The company also benefited from rising share prices in some of its other investments, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global, and Bytedance, the Chinese developer of TikTok.
SoftBank's financial results tend to fluctuate significantly due to its diverse investment portfolio, which includes companies like search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia. The company invests in a variety of companies through its Vision Funds, a series of investment vehicles.
SoftBank's founder, Masayoshi Son, is a prominent figure in the Japanese technology investment landscape. The company does not provide earnings forecasts.