SoftBank Group (9984.T) is regaining its mojo. The Japanese firm reported its first net income in five quarters on Thursday, netting 985.5 billion yen ($6.6 billion) in the three months through December, helped by gains on investments at the Vision Fund. Finance chief Yoshimitsu Goto expressed relief and made a case for why the turnaround is sustainable.
Goto underscored the shift in the portfolio since 2019, from a China-centric one anchored around e-commerce giant Alibaba (9988.HK) to a more global and artificial intelligence-centric one. The messaging is on trend. The 11% stock pop in SoftBank’s stock was largely driven by $78 billion Arm . A day earlier, the chip designer, which is majority-owned by SoftBank, forecast strong AI-related demand from customers. Goto added that SoftBank could, if needed, use Arm shares to back loans to make fresh investments; the U.S.-listed company’s shares soared 22% in after-hours trading in New York. Alibaba’s stock fell overnight on a dimming outlook.
There were other positives. SoftBank picked up shares worth $7.7 billion in T-Mobile US (TMUS.O) in December as part of a contingent consideration relating to the mobile operator’s 2020 merger with its then-U.S. subsidiary Sprint. Meanwhile, its Japanese telecom operator is doing well. Its investment in WeWork was a pain point after the shared-office leasing company filed for Chapter 11 bankruptcy protection last November. But for now, SoftBank and its investors are looking forward. (By Una Galani)
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