Booming Tech Fund Investments Help Bolster Profits for SoftBank

SoftBank has been investing big in tech development and it looks to be paying off, big time.  A recent report shows that the operating income for SoftBank’s Vision Fund skyrocketed 66 percent—to just shy of 400 billion yen (the equivalent of about $3.8 billion USD)—last quarter, mostly on valuation gains from Oyo, Slack, and Doordash. 

However, it also appears that overall operating income dropped by 3.7 percent from one year ago, to 689 billion yen ($6.5 billion USD), mostly catching drag from notably big losses at Sprint.  If you were not aware SoftBank owns more than 80 percent of the US cellular provider who is, at the moment, preparing to merge with T-mobile now that the United States Department of Justice has finally authorized the deal.  The Japanese technology conglomerate holds significant stakes in major tech firms like and Uber and WeWork as well. 

Now, it should be probably be noted that the Saudi-backed Vision Fund—along with the existing Delta Fund—generated 58 percent of SoftBank’s operating profit for the period, totaling $6.5 billion for the period. This was all driven by that $3.8 billion tech valuation gain.  However, Softbank’s Uber stake saw some decline, thankfully balanced by appreciation from its investment in the Indian-based hotel-booking site, Oyo as well as the network messaging service Slack. 

In other metrics, though, SoftBank’s net profit shot up dramatically, quadrupling in value to 1.12 trillion yen, getting some boost from a simple one-off gain from the sale of a handful of Alibaba shares. This is approximately equivalent to $10.6 billion USD.  At the end of June, SoftBank’s Vision Fund boasted an impressive portfolio of 81 investment opportunities, valued at more than $82 billion. Overall, this represents valuation growth of 24 percent.