SoftBank profits drop 18%, stock falls 4% in Tokyo
SoftBank’s results tend to go up and down because it invests in an array of companies through its Vision Fund, which banks heavily on fledgling technology.
SoftBank Group, the Japanese technology investment firm, announced on Thursday a 18% decline in fiscal first quarter profit, as soaring expenses outpaced its investment gains. The company reported a profit of 347.3 billion yen ($2.2 billion) for the April-June period, a decrease from 421.8 billion yen in the same period last year. However, quarterly sales increased nearly 11% to 2 trillion yen ($12.7 billion).
Chief Financial Officer Yoshimitsu Goto stated that SoftBank's venture with Arm, a British semiconductor and software design company, was progressing well. The Tokyo-based firm has injected an additional $20 billion into OpenAI and plans to make further investments in the current fiscal year, Goto added.
SoftBank's financial performance often fluctuates due to its diverse investments through its Vision Fund, which heavily relies on early-stage technologies. While such gambles can yield substantial returns, they also carry significant risks. Some of the companies SoftBank has backed include ByteDance, the parent firm of TikTok; U.S. chip maker Intel Corp.; mobile payment service PayPay; and Taiwan Semiconductor Manufacturing Company, or TSMC.
Founded in 1981 by CEO Masayoshi Son, SoftBank began investing in internet and computer-related businesses, later diversifying into futuristic projects such as autonomous driving and robotics.
The company does not provide annual forecasts. SoftBank Group shares closed 4% lower in Tokyo trading.
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