SoftBank Group Corp. returned to profitability in the first half of fiscal 2024, posting net income of ¥1.01 trillion ($7.1 billion), marking a dramatic turnaround from a ¥1.41 trillion loss a year earlier as gains from T-Mobile US Inc. and Vision Fund investments bolstered results.
The Tokyo-based company recorded investment gains of ¥2.65 trillion for the six months ended September 30, compared with a ¥963.6 billion loss in the same period last year. T-Mobile shares surged nearly 27% during the quarter, contributing to a ¥566.2 billion gain, while the Vision Fund segment posted a ¥610.4 billion gain as valuations improved for portfolio companies including ByteDance Ltd. and Coupang Inc.
“The Vision Funds are now showing cumulative gains for the first time in nine quarters,” said Alex Clavel, who will become sole CEO of SoftBank Investment Advisers and SoftBank Global Advisers from January 2025, as Rajeev Misra steps down as co-CEO.
The company’s net asset value dipped to ¥29.0 trillion from ¥35.3 trillion three months earlier, mainly due to yen appreciation. The loan-to-value ratio rose to 12.5% from 7.8% but remained well below the company’s 25% target for normal times.
Masayoshi Son’s conglomerate has been focusing on AI investments, participating in a $6.6 billion funding round for OpenAI at a $157 billion valuation in September. Meanwhile, Arm Holdings Plc, which went public in September 2023, continued strong performance with revenue rising 23% year-on-year to $1.78 billion in the first half.
SoftBank maintained a sizeable cash position of ¥3.8 trillion and announced progress on its latest share buyback program, having repurchased ¥174.8 billion of shares through October under the ¥500 billion authorization announced in August.
