“SoftBank Swings to Quarterly Profit & Focuses on Arm Unit” ,“SoftBank Group, based in Tokyo, announced a notable shift in its financial trajectory, reporting a return to profit during the last quarter of its fiscal year. This positive outcome aligns with the company’s strategic emphasis on artificial intelligence as a key driver for future growth. The Japanese conglomerate is intensifying its focus on AI technologies, aiming to revitalize its business and chart a path towards sustained expansion.”
“SoftBank reports a substantial profit of ¥328.9 billion (US$2.11 billion) for January-March, marking a significant turnaround from the ¥32 billion yen loss recorded a year prior. Despite this consecutive quarter of profit, the company’s annual financial report reveals it remained in the red for the full year, indicating continued challenges despite recent successes.”
Still, Arm’s surging valuation has not contributed to SoftBank profit as Arm is a subsidiary. Whereas Arm reported record January-March sales on licence and royalty revenue, SoftBank booked a ¥33-billion loss from its Arm investment in the last fiscal year due to increased expenses related to stock compensation and hiring.
“SoftBank Asserts AI Focus for Group Assets, Leverages Arm Across Portfolio Companies”
Most of SoftBank’s investments through its Vision Fund unit suffered valuation loss in the fourth quarter, leaving it with a ¥57.5 billion loss. A bright spot came in the form of South Korean e-commerce firm Coupang which generated around US$600 million in unrealised investment gain.
“In February, SoftBank’s Chief Financial Officer Yoshimitsu Goto emphasized the company’s transition back to a growth trajectory. Notorious for its volatile earnings and significant investments in startups, SoftBank’s strategic shift reflects a concerted effort to refocus on sustainable growth. Goto’s statement underscores the company’s renewed confidence in its ability to navigate challenges and capitalize on emerging opportunities in the market.”
