TOKYO (Reuters) – SoftBank reported a net profit of 1.18 trillion yen (7.22 billion euros) on Tuesday for the three months ending in September, as the technology giant benefited from rising prices shares of listed companies in its Vision Fund investment vehicle.
These second quarter results far exceed the expectations of analysts who expected a profit of 287 billion yen in an LSEG consensus and reflect SoftBank’s more cautious approach to investment.
SoftBank was forced into a lengthy withdrawal period when interest rate hikes caused the value of its stakes in tech start-ups to plummet.
Today, some of those valuations are starting to recover, allowing Vision Fund, its investment division, to realize an investment gain of 608 billion yen.
The biggest contributors this quarter were Chinese ride-hailing giant Didi and South Korean e-commerce company Coupang, which helped Vision Fund 1 realize an investment gain of $5.7 billion ($5.36 billion euros).
Vision Fund 2, which brings together a broader range of early-stage technology startups, suffered an investment loss of $1.7 billion for the quarter.
(Anton Bridge report, Leo Marchandon, edited by Augustin Turpin)
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