Softbank bounces back with $12bn profit thanks to tech boom
Softbank has bounced back from a record loss earlier in the year after strong performances by its tech investments fuelled a $12bn (£9.2bn) quarterly profit.
The Japanese conglomerate plunged to its worst ever annual performance in March after recording a huge $18bn loss for its flagship $100bn Vision Fund.
Softbank set out plans for a $41bn asset sale in the wake of the results, while it is reportedly set to cut 15 per cent of jobs at the investment arm that controls the Vision Fund.
But Softbank rebounded in the three months to the end of June with a net profit of 1.3 trillion yen ($11.8bn).
The group’s embattled Vision Fund recorded a $2.8bn profit over the quarter as a rally in global tech stocks boosted its investments in firms such as Uber and Slack.
The fund also benefited from strong public listings, including the successful New York float of US insurance startup Lemonade last month.
Softbank said it has raised 4.3 trillion yen from selling down stakes in Chinese ecommerce giant Alibaba, its Japanese telecoms unit and T-Mobile following its merger with rival Sprint.
The Japanese giant is also in talks with US chip giant Nvidia over a sale of Cambridge-based chip designer Arm in a deal worth a reported $32bn.
The turnaround will be a boon to founder and chairman Masayoshi Son after a turbulent period for the investment stalwart.
However, Softbank could be facing fresh trouble over its stake in the Chinese owner of Tiktok.
Microsoft and Twitter are reportedly in discussions with Bytedance over a sale of the hit social media app following a ban announced by US President Donald Trump.