SoftBank has reported its financial results for the December 2023 quarter and has turned a profit for the first time after several consecutive quarters of losses. The net profit stands at a staggering 950 billion yen, derived from a total revenue of 1.77 trillion yen.
The majority of SoftBank’s profit for this quarter can be attributed to the earnings of its Vision Fund, which amounted to 600 billion yen. Additionally, the IPO of Arm in September, along with an increase in stock prices, contributed to the overall profit.
Yoshimitsu Goto, CEO of SoftBank, stated during the earnings announcement that the company’s investment focus has shifted from Alibaba to AI. Currently, the value of SoftBank’s investment in Alibaba represents only 0.02% of its total investments, whereas a significant portion has been allocated to Arm, viewed as the heart of AI technology. The shift in investment strategy away from Alibaba has also led to a decrease in SoftBank’s investment in China from 54% to 8%.
Noteworthy investments from Vision Fund 2 in the previous quarter include Tractable, a platform that assesses car damage through AI-enabled image processing, and Cato Networks, a company specializing in Secure Access Service Edge (SASE) technology for security management in organizations.
In conclusion, SoftBank has experienced a significant turnaround in its financial performance, with a notable shift in investment focus towards AI. Vision Fund 2 has made successful investments in companies like Tractable and Cato Networks. Overall, the future looks promising for SoftBank.
TLDR: SoftBank has reported a profit of 950 billion yen for the December 2023 quarter, marking a turnaround from previous losses. The earnings primarily stem from Vision Fund’s profit and investments in AI-related ventures. The company has shifted its investment focus from Alibaba to AI, significantly reducing its stake in the former. Vision Fund 2 has also made notable investments in Tractable and Cato Networks.
Leave a Comment