🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Softbank Group Q2 profit beats expectations on IPOs, yen strength

Published 11/12/2024, 03:02 PM
© Reuters.
9984
-
BABA
-
9988
-

Investing.com-- Japanese technology conglomerate SoftBank Group Corp. (TYO:9984) clocked a stronger-than-expected quarterly profit on Tuesday, aided by the successful listing of some of its portfolio stocks and by resilience in the yen.

SoftBank’s net profit surged to 1.18 trillion yen in the three months to September 30, much more than Reuters estimates of 287 billion yen. That compared to a loss of 931 billion yen in the same period a year ago.

The firm, which is a major investor in the tech sector, benefited from a boom in valuations this year amid hype over artificial intelligence. The successful listing of its portfolio firms also benefited its top line. 

Softbank’s flagship Vision Fund unit, through which it makes a bulk of its tech investments, clocked a 608.48 billion yen gain on investments in the September quarter.

The firm clocked an investment gain of 1.28 trillion yen on its holdings in Alibaba Group Holdings Ltd (NYSE:BABA) (HK:9988) over the six months to September 30, with a bulk of these gains coming in September after China announced more stimulus measures.

Softbank (OTC:SFTBY) also benefited from increased initial public offering activity in its portfolio. 

Indian firms Brainbees Solutions Ltd (NS:BRAE) and Ola Electric Mobility Ltd (NS:OLAE) both seeing strong IPOs during the quarter, contributing to an investment gain in Softbank’s Vision Fund. 

The firm was also sitting on a windfall from chip designer Arm Holdings (NASDAQ:ARM), in which Softbank holds a 90% stake, listing on the Nasdaq in late-2023. 

Softbank benefited from strength in the yen through the quarter, as hawkish moves by the Bank of Japan and interest rate cuts by the Federal Reserve saw the yen strengthen sharply, albeit briefly, in September. The currency has since relinquished all of its third-quarter gains, presenting earnings pressure on Softbank during the current quarter. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.