Softbank profit zooms 21-fold on lucrative start-up investments

MUMBAI: Japanese telecommunications and technology conglomerate Softbank Group Corp. reported Monday a whopping 1.17 trillion yen (USD 11 billion) profit for the OctoberDecember quarter as its investments rose in value.

SoftBank's profits were far better than what analysts had expected, zooming up 21-fold from the 55 billion yen profit recorded the previous year.

The value of its investments rose, including in DoorDash, a U.S. food delivery service, and Uber, a U.S. technology company that offers ride-hailing and deliveries. Quarterly sales edged up 7% to 1.5 trillion yen ($14 billion).

SoftBank's investment portfolio got an overall healthy boost from the booming global stock market.

Although companies have been hurt by the coronavirus pandemic, some companies, including those SoftBank has invested in, are proving beneficiaries of the need for people around the world to stay home.

SoftBank has an array of investments, mostly in technology companies, through its Vision Funds.

Recently, SoftBank's bottom line benefited from selling its stake in U.S. mobile carrier Sprint and British IOT company Arm because the selling price was higher than the purchasing price.

SoftBank founder and Chief Executive Masayoshi Son told reporters the world is still facing hard times because of the coronavirus pandemic, but expressed hope the situation will improve later this year.

SoftBank also has invested in other powerful companies such as Alibaba, a Chinese e-commerce, retail and net conglomerate. Son said Alibaba's operations have been recovering recently.