The Public Investment Fund and Mubadala-backed Vision Fund and SoftBank’s own Delta Fund contributed JPY 397.6 billion to profit in the quarter, accounting for more than half of the total.
Wednesday 07, August 2019
SoftBank Group reported first-quarter profit that beat the highest analyst estimate thanks to valuation gains from Vision Fund investments such as Slack Technologies, reported Bloomberg.
Operating income in the three months ended June slipped 3.7 per cent to JPY 688.8 billion ($6.5 billion), that is more than the JPY 345.3 billion average of analyst estimates.
Masayoshi Son has been remaking SoftBank from primarily a telecommunications operator into a technology investment firm and his $100 billion Vision Fund has emerged as a major contributor to earnings.
The pending sale of SoftBank’s US wireless unit Sprint to T-Mobile USA would accelerate the transition. Last month, Son announced that he aims to raise a total of $108 billion for a second enormous fund.
SoftBank booked valuation gains on its stakes in Slack, which went public in June, Indian hotel chain OYO Rooms and food-delivery app DoorDash. The gains were offset by a JPY 195.3 billion decline in the fair value of holdings including Uber Technologies.
The company’s additional investments in the quarter totalled $6.2 billion.
SoftBank said the fund held 81 investments worth about $66.3 billion. The portfolio added $15.9 billion in value relative to the cost at which SoftBank acquired the stakes. The Japanese company also rolled over its earlier investments in Ola and WeWork for $950 million or about 37 per cent more than the acquisition cost.
Last month, the billionaire announced that he aims to raise $108 billion for a second Vision Fund. SoftBank is committing $38 billion in capital itself and expects to collect money from Apple, Microsoft as well as Foxconn Technology Group and the sovereign wealth fund of Kazakhstan.