SoftBank has reported a 49% rise in operating profit

SoftBank has reported a 49 per cent year-on-year rise in operating profit during the first quarter thanks to growing investment gains from its $100 billion Vision Fund. The profit jump comes as Masayoshi Son, the founder and chief executive of the Japanese technology group, seeks to convince sceptical investors that the group’s technology investments through the Saudi-backed fund deserve a sizeable premium. The group has struggled to rid itself of a conglomerate discount on its stock price with investors complaining about the lack of transparency and obvious synergies in its Vision Fund investments, which include stakes in WeWork, the shared office provider, and chipmaker Nvidia… Mr Son hopes to unlock the value of the group’s assets with a partial listing of SoftBank’s domestic telecoms business… For April to June, SoftBank reported an operating profit of ¥715 billion ($6.4 billion) compared to ¥479 billion a year earlier. The Vision Fund contributed ¥240 billion in profits for the quarter… A large chunk of the Vision contribution came from the sale of its stake in Indian online retailer Flipkart to Walmart for $4 billion following a $2.5 billion investment last August.


Kana Inagaki