SoftBank reveals investment gains, announces share repurchase amid vision fund rebound
(MENAFN) SoftBank Group Corp. announced a 1.9 billion yen (USD12.9 million) gain from its Vision Fund for the first fiscal quarter ending in June, marking a return to profitability following a series of losses. The positive outcome was driven by gains from key portfolio companies, such as ByteDance, the parent company of TikTok, which helped to counterbalance losses from other investments. Despite this quarterly gain, the Vision Fund segment still reported an overall loss of 204.3 billion yen, a stark contrast to the profit reported in the same quarter last year.
In addition to the performance update, SoftBank revealed plans for a significant share buyback program. The company intends to repurchase up to 6.8 percent of its available shares, with a total value of up to 500 billion yen (USD3.4 billion). This announcement comes after a challenging period for the Vision Fund, which had previously reported a profit of 159.77 billion yen in the corresponding quarter last year and a loss of 57.53 billion yen in the quarter ending in March.
The Vision Fund's recent success is largely attributed to the successful initial public offering of chip designer Arm, in which SoftBank holds a significant stake of around 90 percent. For the June quarter, SoftBank Group’s net sales increased by 9.3 percent from the previous year to 1.7 trillion yen, surpassing analysts' expectations. The company reported a net profit of 10.5 billion yen, a notable recovery from the 316.2 billion yen loss recorded in the same quarter of the previous year. This rebound was supported by substantial gains from investments in Alibaba and T-Mobile, totaling 235.7 billion yen and 179.1 billion yen, respectively.
MENAFN08082024000045015682ID1108532150
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.