By neuropower
Japanese investment powerhouse SoftBank Group reported a net profit of 517 billion yen ($3.49 billion) for the January–March quarter, driven by strong returns from its telecommunications holdings and rising valuations in its portfolio of later-stage startups.
The quarterly result marked a significant improvement over the 231 billion yen profit reported during the same period last year and sharply exceeded the average forecast of a 26.9 billion yen loss, based on five analyst estimates compiled by LSEG.
The figures underscore both the volatility and potential rewards of SoftBank’s strategy of backing high-growth tech firms, while also highlighting the challenges of predicting earnings amid constantly shifting valuations. Vision Fund 1, which primarily targets mature startups, recorded an investment gain of 940 billion yen, buoyed by increased fair value of companies like ByteDance (operator of TikTok) and South Korean e-commerce platform Coupang.
In contrast, Vision Fund 2—focused on earlier-stage ventures—reported an investment loss of 526 billion yen, reflecting the heightened risk and slower return profile of younger startups.
SoftBank’s long-standing investments in established telecommunications giants such as T-Mobile US and Deutsche Telekom have remained a stable source of profits. Notably, T-Mobile’s shares surged to a record high in March, ending the quarter with gains exceeding 20 percent.
This latest earnings report reflects a rebound in parts of SoftBank’s investment portfolio, reinforcing the conglomerate’s resilience and adaptability amid an unpredictable tech landscape.
