Thanks to the value of the vision, and a T-Mobile US Inc**Windfall", SoftBank Group has turned a profit after four consecutive quarters of losses.
On Thursday, February 8, SoftBank Group announced its financial results for the third quarter from October to December 2023.
SoftBank's net profit in the fourth quarter of last year was 950 billion yen ($6.4 billion), reversing a loss of 783 billion yen in the same period last year, according to the financial report, which was the first quarterly profit since September 2022.
During the same period, SoftBank Vision** achieved 4,227A profit of 400 million yen, compared to a loss of 6,601 in the same period last year000 million yen.
In addition, despite the volatility in the market, SoftBank maintained its full-year dividend** at an expected 44. share rating00 yen, the same as the market estimate.
Vision ** made a profit of 422.7 billion yen for the period, compared with a loss of 660.1 billion yen in the same period last year. Among those who contribute to the vision of the company, DoorDash Inc、autostore holdings inc.and Symbotic Incand so on the most fierce rally.
At the same time, SoftBank's financial report pointed out that the fair value** of TikTok's parent company, ByteDance, also helped, and the value of Didi** in OTC transactions** 22% also played a driving role.
SoftBank's third quarter vision**1 investment at the end of the period was 69, down 5% from the previous quarter5%；SoftBank's Q3 Vision**2 invested 273 as of the end of the period, compared to 273 in the previous quarter.
Kirk Boodry, an analyst at Astris Advisory, noted:
Stable performance may be a good indicator of the future, and we are not overly optimistic about the current portfolio, with key investment targets such as ByteDance and Fanatics, the largest sportswear store in the United States, likely to go public in 2024.However, doubts remain about the hundreds of privately held start-ups owned by Vision**, which is fully funded by SoftBank and has fallen into the red after global tech valuations have been damaged in the post-pandemic recession.
At the same time, according to SoftBank Chairman and CEO Masayoshi Son, T-Mobile acquired Sprint Corp., a former SoftBank subsidiary, in 2020The deal resulted in SoftBank acquiring nearly $8 billion worth of more than 48 million shares of T-Mobile**, making a big profit.
This was a "windfall" for SoftBank, which was T-Mobile's acquisition of rival and former SoftBank subsidiary Sprint Corp. in 2020As part of the agreement, SoftBank will receive more T-Mobile shares if the T-Mobile share price exceeds a certain level for a specific period
In addition, the share price of Arm Holdings PLC, a chip design subsidiary that went public last year, was 40% in the fourth quarter, further boosting SoftBank's performance. As a shareholder of about 90 percent of the company, SoftBank is likely to use Arm to raise money for new investments.
On Wednesday, Arm gave higher-than-expected upbeat earnings guidance, bearing fruit in more profitable areas ranging from smartphones to servers and data centers, with its shares surging as much as 41% in after-hours trading, pushing its market value to nearly $100 billion. That allowed Mr. Son's SoftBank to make more money on the ARM deal than it lost on the bankrupt WeWork. With the share price**, the value of the stake held by SoftBank, ARM's majority shareholder, increased by nearly $16 billion, from nearly $71.6 billion to $87.4 billion.
SoftBank shares jumped 11% in trading on Thursday, hitting their highest level since July 2021.
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