Softbank Group Corp swung to its first profit after four straight quarters of losses, backed by a rebound in the value of Vision Fund’s public holdings and a windfall from T-Mobile US Inc shares.
The Tokyo-based technology investor reported a net income of ￥950 billion (US$6.4 billion) for the December quarter, reversing a ￥783 billion loss for the same period a year ago. It is the Japanese company’s first profit since September 2022, as it navigates volatile swings in the value of its start-up investments.
The Vision Fund unit reported a ￥422.74 billion gain for the period, up from a loss of ￥660.1 billion a year ago. DoorDash Inc, AutoStore Holdings Inc and Symbotic Inc were among the best performers contributing to the Vision Fund. The value of subsidiary Didi Global Inc’s (滴滴) shares also rose 22 percent in the over-the-counter market.
Photo: REUTERS
The solid quarter might herald more relief to come, Astris Advisory Japan analyst Kirk Boodrysaid. “We have not been overly bullish on the current portfolio, but the listing of key VF1 assets like ByteDance Ltd (字節跳動) or Fanatics Inc could provide some relief in 2024,” he wrote in a note ahead of the earnings, referring to Vision Fund’s investments in China’s TikTok owner and the US online sportswear and fan gear store.
Softbank booked an extra windfall from an arrangement to receive more than 48 million T-Mobile shares worth almost US$8 billion. The deal was part of an agreement struck when T-Mobile acquired rival and former Softbank unit Sprint Corp in 2020, designed to give Softbank more T-Mobile shares if the stock rose above a certain level during a given period.
A 40 percent rally in newly-listed chip design unit Arm Holdings PLC’s shares in the December quarter further bolstered Softbank’s finances. As the owner of about a 90 percent stake in the UK firm, Softbank would likely be able to use Arm to help finance loans for new investments, in the same way a stake in Alibaba Group Holding Ltd (阿里巴巴) helped Softbank secure financing to acquire Arm in the first place.
However, skepticism remains about the Vision Fund’s hundreds of privately-held start-ups. The second Vision Fund, funded entirely by Softbank, is mired in losses after a post-COVID-19 pandemic slump hurt tech valuations worldwide. The first Vision Fund has had its own share of losses, including from WeWork Inc, the start-up once valued as much as US$47 billion that filed for bankruptcy last year.
STILL HOPEFUL: Delayed payment of NT$5.35 billion from an Indian server client sent its earnings plunging last year, but the firm expects a gradual pickup ahead Asustek Computer Inc (華碩), the world’s No. 5 PC vendor, yesterday reported an 87 percent slump in net profit for last year, dragged by a massive overdue payment from an Indian cloud service provider. The Indian customer has delayed payment totaling NT$5.35 billion (US$162.7 million), Asustek chief financial officer Nick Wu (吳長榮) told an online earnings conference. Asustek shipped servers to India between April and June last year. The customer told Asustek that it is launching multiple fundraising projects and expected to repay the debt in the short term, Wu said. The Indian customer accounted for less than 10 percent to Asustek’s
‘DECENT RESULTS’: The company said it is confident thanks to an improving world economy and uptakes in new wireless and AI technologies, despite US uncertainty Pegatron Corp (和碩) yesterday said it plans to build a new server manufacturing factory in the US this year to address US President Donald Trump’s new tariff policy. That would be the second server production base for Pegatron in addition to the existing facilities in Taoyuan, the iPhone assembler said. Servers are one of the new businesses Pegatron has explored in recent years to develop a more balanced product lineup. “We aim to provide our services from a location in the vicinity of our customers,” Pegatron president and chief executive officer Gary Cheng (鄭光治) told an online earnings conference yesterday. “We
LEAK SOURCE? There would be concern over the possibility of tech leaks if TSMC were to form a joint venture to operate Intel’s factories, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday stayed mum after a report said that the chipmaker has pitched chip designers Nvidia Corp, Advanced Micro Devices Inc and Broadcom Inc about taking a stake in a joint venture to operate Intel Corp’s factories. Industry sources told the Central News Agency (CNA) that the possibility of TSMC proposing to operate Intel’s wafer fabs is low, as the Taiwanese chipmaker has always focused on its core business. There is also concern over possible technology leaks if TSMC were to form a joint venture to operate Intel’s factories, Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺)
It was late morning and steam was rising from water tanks atop the colorful, but opaque-windowed, “soapland” sex parlors in a historic Tokyo red-light district. Walking through the narrow streets, camera in hand, was Beniko — a former sex worker who is trying to capture the spirit of the area once known as Yoshiwara through photography. “People often talk about this neighborhood having a ‘bad history,’” said Beniko, who goes by her nickname. “But the truth is that through the years people have lived here, made a life here, sometimes struggled to survive. I want to share that reality.” In its mid-17th to
RSS