Softbank Enjoys Record Operating Profit

May 10, 2018

Tokyo- Japan's Softbank Group Corp. on Wednesday reported a record consolidated operating profit in fiscal 2017, citing massive stock valuation gains at its 10-trillion-yen fund.

The operating profit for the year to March rose 27.1 pct from the previous year to 1,303,801 million yen, exceeding one trillion yen for the second straight year.

The growth was backed by 346 billion yen in share valuation gains at the Softbank Vision Fund, managed by Softbank Group, the Saudi Arabian government and other investors.

The valuation gains more than offset falls in operating profits at domestic communications business and key subsidiaries such as Yahoo Japan Corp. <4689> and ARM Holdings PLC of Britain.

Softbank Group's overall sales grew 2.9 pct to 9,158,765 million yen, also a record high.

Meanwhile, its net profit fell 27.2 pct to 1,038,977 million yen, dragged down mainly by 600 billion yen in one-off losses related to transactions of shares in Chinese e-commerce giant Alibaba Group Holding Ltd.

"We are growing confident month by month" about investment projects under the 10-trillion-yen fund, Softbank Group Chairman Masayoshi Son told a news conference.

"So far, Softbank Group has been mainly telecommunications business. Now, it's a strategic holding company," he said.

He expressed hopes that his company will make diversified investment in blue-chip companies in the area of information and communications technology.

Son also said he aims to get ARM Holdings relisted in five to seven years. Jiji Press