SoftBank reported its financial performance for the March 2024 quarter with total revenue of 1.75 trillion yen and a net profit of 2.31 hundred billion yen. This marks the second consecutive profitable quarter, driven by positive returns from direct investments in SoftBank’s portfolio companies, surpassing losses from the Vision Fund.
In the latest quarter, SoftBank’s investment portfolio aligns with the company’s strategy announced last year, transitioning from Alibaba to AI. Currently, the company holds a 0.00% stake in Alibaba, with Arm comprising 47% of the total investment portfolio. The company has also shifted its investments away from China, reducing its share from 52% to 6%, with the added allocation now focused on Europe, particularly in the Arm sector.
The Vision Fund 1 and 2 continue to hold significant investments in companies like Coupang, Doordash, and Roivant, yielding profits, while investments in DiDi and WeWork have resulted in losses.
Source: SoftBank (pdf)
TLDR: SoftBank reported a profitable second consecutive quarter driven by direct investments, realigning its portfolio towards AI and expanding into the European market while maintaining significant investments in key companies.
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