SoftBank Breaks Four-Quarter Loss Streak, Records $6.4B Profit in Q3
- ByStartupStory | February 9, 2024
Japanese investment major SoftBank Group has reported a profit for the first time in four quarters, with a profit of $6.6 billion (985.5 billion yen) in the quarter ended December 31, 2023, compared to a loss of $5 billion (744.7 billion yen) in the same period a year ago. The net income of the Masayoshi Son-led investment firm rebounded to $6.37 billion (950 billion yen), while its net sales reached $11.9 billion (1.77 trillion yen) in Q3 FY23.
SoftBank Vision Fund (SVF), its tech investment arm, recorded an investment profit of $4.04 billion (600.73 billion yen) in Q3 FY23 after selling its shares in chip designer Arm, which SoftBank had acquired for $32 billion in 2016. The fund had incurred a record $32 billion in losses in the year ended March 31, 2023.
In the latest quarter, SoftBank Vision Fund 2 (SVF2) deployed $90 million, while SoftBank Vision Fund 1 (SVF1) did not make any investments in the last nine months. SVF1 has gained $16.7 billion since its inception, while SVF2 has incurred losses of $19 billion.
SoftBank reported that SVF2 faced unrealized losses of $1.16 billion as it had to write down the value of WeWork to zero yen after the US-based co-working startup declared bankruptcy. WeWork was once valued at $47 billion. SoftBank has made significant investments in India, deploying billions of dollars in Indian startups such as Paytm, Flipkart, Ola, and OYO, among others.
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