SoftBank Group (9984.T) has reclaimed its vigor, marking its first net income in five quarters with a strong performance in the three months ending December, totaling 985.5 billion yen ($6.6 billion).
This resurgence can be attributed to gains made on investments at the Vision Fund, as highlighted in the report released on Thursday.
Yoshimitsu Goto, the finance chief, expressed relief at this turnaround and presented a compelling argument for its sustainability.
Goto emphasized a significant shift in the portfolio’s focus since 2019, transitioning from a China-centric orientation centered around e-commerce titan Alibaba (9988.HK) to a more globally diversified and artificial intelligence-driven strategy.
This strategic realignment resonates with current market trends.
The notable 11% surge in SoftBank’s stock value was predominantly fueled by the promising prospects of its $78 billion asset, Arm.
Just a day prior, Arm, a chip designer predominantly owned by SoftBank, projected robust demand for AI-related technologies from its clientele.
Goto further hinted at the potential utilization of Arm shares as collateral for loans to facilitate fresh investments, triggering a remarkable 22% surge in Arm’s shares during after-hours trading in New York.
Conversely, Alibaba experienced a dip in its stock value overnight due to a dimming outlook.
In addition to these successes, SoftBank secured shares valued at $7.7 billion in T-Mobile US (TMUS.O) in December, stemming from a contingent consideration linked to the mobile operator’s merger with its former U.S. subsidiary, Sprint, in 2020.
Meanwhile, the performance of its Japanese telecom arm remained robust.
Although the bankruptcy filing of WeWork, a shared-office leasing company in which SoftBank has invested, posed a challenge, the focus now lies on future prospects, with SoftBank and its investors adopting an optimistic outlook.
Through strategic shifts, astute investments, and promising partnerships, SoftBank has navigated through challenges, emerging stronger and more resilient, with eyes set firmly on the opportunities that lie ahead. (Words: 267)