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SoftBank Group Corp. announced a second consecutive profitable quarter, driven by robust investments in artificial intelligence and semiconductors.
In the March quarter, the Tokyo-based firm posted a net income of ¥231.1 billion ($1.5 billion), a significant turnaround from the prior year’s ¥57.6 billion net loss. This performance exceeded expectations, attributed to gains at the holding company level and derivative contracts. However, SoftBank’s Vision Fund encountered a ¥96.7 billion loss, primarily due to valuation markdowns in its second portfolio, which includes companies like JD Logistics Inc. and AutoStore Holdings Ltd.
While the Vision Fund struggled, the impending IPO of Arm Holdings and its subsequent share price rally highlighted positive developments. SoftBank’s strategic redirection towards artificial intelligence and semiconductor technologies has begun to influence its financial health positively. Notably, the firm’s cash reserves surged to ¥6.2 trillion by the end of March.
Amid these shifts, SoftBank is actively exploring new investments. It recently led a $1.05 billion funding round for Wayve Technologies Ltd. and is negotiating to acquire Graphcore Ltd.
Additionally, SoftBank might divest some of its stakes in T-Mobile and Deutsche Telekom to fund these initiatives, continuing a trend of selling assets like its Alibaba shares to finance new ventures and support its balance sheet.
