SoftBank posts second quarter of profit as AI boom lifts shares of chip designer Arm
- The Japanese firm earned a better-than-expected net income of 231.1 billion yen in the March quarter, compared with a net loss a year earlier
- Chairman and CEO Masayoshi Son is mulling sizeable investments in AI and semiconductors to maximise Arm’s potential beyond mobile devices
The Tokyo-based company earned a better-than-expected net income of 231.1 billion yen (US$1.5 billion) in the March quarter, compared with a net loss of 57.6 billion yen a year earlier, helped by investment gains at the holding company and on derivative contracts. For the full year, SoftBank reported a narrower net loss of 227.7 billion yen, beating expectations.
“The Arm [initial public offering] and share-price rally were notable positives,” said Satoru Kikuchi, a senior analyst at SMBC Nikko Securities, in a note ahead of the earnings. “Our focus is on strategic investments directed by SoftBank Group rather than diversified investments like Vision Fund 2.”
The Vision Fund has steadily sold off or written down billions of dollars’ worth of its publicly-listed holdings in recent years as Son realigns his focus. That has helped lift SoftBank’s cash pile to 6.2 trillion yen at the end of March.
